China Integrated Energy (PINK:CBEH)

On April 26, 2011, a member of the Audit Committee of the Board of Directors of China Integrated Energy, Inc.  received a letter from KPMG confirming that the client-auditor relationship with the Company ceased.

In its letter KPMG indicated that its resignation was due to, in its view, the inconsistency between management’s representation to KPMG that it will fully cooperate with the special investigation requested and authorized by the Audit Committee and the manner of management’s conduct during the investigation, and such inconsistency has made KPMG unable to rely on management’s representations in connection with its 2010 audits of the consolidated financial statements and the effectiveness of internal control over financial reporting of the Company.

XI'AN, China, April 20, 2011 /PRNewswire-Asia/ -- China Integrated Energy, Inc. (Nasdaq: CBEH) (the "Company"), a leading non-state-owned integrated energy company in the People's Republic of China, today announced that four gas station leases entered into in 2008 have been terminated by Shaanxi Highway Service Co., Ltd. ("Shaanxi Highway"), reducing the total number of the Company's gas stations from thirteen to nine. Shaanxi Highway has recalled all of the 32 gas stations that are currently being leased by Shaanxi Highway to third parties, including the four gas stations leased by the Company.

On May 20, 2008, the Company leased four gas stations for operation from Shaanxi Highway. The annual lease payment for each gas station was approximately $437,000 (RMB 3,000,000). The Company was required to make the lease payments for all four gas stations in advance in five-year increments. The first five-year aggregate lease payment of $8,747,631 (RMB 60,000,000) has been paid by the Company to Shaanxi Highway.

Each gas station will be inspected by Shaanxi Highway, and upon its approval, the Company will receive the pro-rated portion of the prepaid lease payment by April 30, 2011. The Company expects the aggregate returned amount to be approximately $3,970,496 (RMB 26,000,000).

"As mentioned in my letter to shareholders on March 23, 2011, since early 2010, the cost of acquiring or leasing retail gas stations has escalated significantly in China, primarily as a result of increased competition to buy gas stations from state-owned petroleum companies working in cooperation with foreign entities," said Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, Inc. "Given the fierce competition that exists now in the retail gas station market in China, we will continue to evaluate organic and acquisition opportunities in all three of our business segments - biodiesel production, wholesale distribution and retail gas stations - to prudently deploy available resources to achieve the greatest investment return."

XI'AN, China, April 5, 2011 /PRNewswire-Asia-FirstCall/ -- China Integrated Energy, Inc. today announced that the Audit Committee of the Company's Board of Directors has retained the law firm Pillsbury Winthrop Shaw Pittman LLP who, in turn, with the Audit Committee retained Deloitte Financial Advisory Services LLP to, together, advise the Company's Audit Committee with regard to the Audit Committee's independent investigation into various issues raised by certain individuals.

Mr. Larry Goldman, an independent Director and Audit Committee Chair, said, "We consider these issues to be significant and the Audit Committee intends to conduct a thorough and independent investigation.  The Audit Committee will authorize counsel to engage such additional independent advisors as deemed necessary and the Committee will work to conclude the investigation in a timely manner."