Net income for the '08 fiscal year of $4,062,941, a 34.6% gain over the $3,017,671 reported last year, also set a new record. Earnings per share for the year, based on comprehensive earnings of $5,681,371, which include a foreign currency translation gain of $1,618,430, reached $0.32 on 12,640,000 shares outstanding. EPS in FY '07 based on comprehensive income of $3,316,110 was $0.30 on 9,922,137 shares outstanding. The increase in shares outstanding reflects the Company's participation in the share exchange transaction in October of 2006, which resulted in the weighted average share calculation in FY '07.

Mr. Chen Si Qiang, CEO and Chairman of the Board of the Company, stated, "The very outstanding results in FY '08 reflect the soundness of our decision to ramp up our methanol and DME production with the aim of reaching our goal of producing 600,000 tons per year of DME, while meanwhile benefitting from the favorable trends in our core fertilizer business where we continue to improve margins. As the largest DME producer in Henan Province, we fully expect to benefit from increasing domestic demand for the alternative fuels we provide, which are cheaper and cleaner substitutes for the LPG used for home heating and cooking, and the petro-diesel fuel used in vehicles."

Fertilizer Profits Grow; DME Revenues Increase 566%

The Company said its most significant accomplishments during the year were the completion of its expansion to 150,000 tons of DME capacity in the second half of the year and the startup of the next phase of the expansion of its methanol/DME capacity. Upon expected completion later this year, this newest expansion will add approximately 200,000 tons of internally generated methanol which can be sold or utilized as feedstock for the 150,000 tons of DME production capacity now in place.

The Company noted that there were other important accomplishments during the year aimed at reducing costs in both its fertilizer and alternative energy businesses. In particular, it cited the launch of its "coal stick" line, which utilizes fine coal -- which is approximately 25% cheaper than lump coal -- in a new stick-shaped product, which helped reduce coal costs in FY '08 and will facilitate further savings in the current year. Additionally, the Company recently announced the start up of an environmentally sound 3000 Kw per hour residual heat generating set that was constructed during FY '08. The new low emission generator is expected to produce cost savings of approximately $750,000 per year if operated at 80% of capacity.

Reflecting these accomplishments, in particular the utilization of coal sticks, the Company said that while urea revenues in the year grew from $21,999,472 in the prior year to $30,774,271 in FY '08, gross profits increased from 13.54% to 17.93%.

DME revenues grew dramatically to $32,626,266 in FY '08 compared to $4,899,690 in the prior fiscal year. However, gross profit for the year of 15.90% was lower than the 21.57% reported in the prior year. The key reason for this was that the Company's self-produced methanol capacity was insufficient to meet its DME production demands and as such was required to obtain methanol at a much higher cost from outside vendors. Going forward, this situation is being addressed by the increased methanol production capacity currently being built by the Company.

While the Company saw increases in other expenses, such as interest costs, selling and distribution costs, and general and administrative expenses, it said that these were in line with the increased sales and scope of the Company, and the continuing construction of increased capacity. With respect to a reported increase in R & D costs, the Company said it is engaged in a number of R & D projects focused on new product development and further reductions in production costs.

Since the end of the year, as reported earlier this week, the VAT tax on DME has been lowered from 17% to 13%, which as described in the Company's announcement, also will have a favorable effect on DME gross profits in the last three quarters of the year.

Outlook

Looking ahead, the Company said it expects another year of record overall growth, based on continuing solid gains in its fertilizer business, and an anticipated significantly increased contribution from its alternative energy products after its new 200,000 ton capacity methanol plant now under construction comes on stream toward the end of the fiscal year. The new methanol capacity will reduce the Company's need to purchase methanol at higher prices from outside vendors, and thereby should contribute to improved margins on sales of DME, or allow the Company to sell the methanol depending on prevailing economics. The Company said that it will soon schedule an Investor Conference Call to review FY '08 results and to further discuss the FY '09 outlook.

                 NEW ORIENTAL ENERGY & CHEMICAL CORP.
         CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
         INCOME FOR THE YEARS ENDED MARCH 31, 2008 AND 2007
                                                   2008           2007
                                               ------------   ------------
REVENUES                                       $ 67,832,920   $ 38,338,773
COST OF GOODS SOLD                               56,978,425     32,731,663
                                               ------------   ------------
GROSS PROFIT                                     10,854,495      5,607,110
Selling and distribution                          1,171,737        659,836
General and administrative                        3,164,145      1,243,143
                                               ------------   ------------
INCOME FROM OPERATIONS                            6,518,613      3,704,131
OTHER INCOME (EXPENSES)
Interest expense, net                              (516,032)      (238,697)
Government grants                                    85,405        372,290
Other expenses, net                                (115,016)       (18,822)
                                               ------------   ------------
INCOME FROM OPERATIONS BEFORE INCOME TAXES        5,972,970      3,818,902
INCOME TAXES                                      1,932,695        812,126
                                               ------------   ------------
INCOME FROM CONTINUING OPERATIONS                 4,040,275      3,006,776
DISCONTINUED OPERATION
Income from discontinued operation                    1,760         10,895
Gain from disposition of discontinued operation      20,906              -
                                               ------------   ------------
NET INCOME                                        4,062,941      3,017,671
                                               ------------   ------------

Foreign currency translation gain                 1,618,430        445,431
                                               ------------   ------------
OTHER COMPREHENSIVE INCOME BEFORE TAX             1,618,430        445,431
INCOME TAX EXPENSE RELATED TO OTHER
 COMPREHENSIVE INCOME                                     -        146,992
                                               ------------   ------------
OTHER COMPREHENSIVE INCOME, NET                   1,618,430        298,439
                                               ------------   ------------
COMPREHENSIVE INCOME                           $  5,681,371   $  3,316,110
                                               ============   ============
WEIGHTED AVERAGE SHARES OUTSTANDING,
 BASIC AND DILUTED                               12,640,000      9,922,137
                                               ============   ============
INCOME FROM CONTINUING OPERATIONS PER SHARE,
 BASIC AND DILUTED                             $       0.47   $       0.38
                                               ============   ============
INCOME FROM DISCONTINUED OPERATION PER SHARE,
 BASIC AND DILUTED                                     0.00           0.00
                                               ============   ============
NET INCOME PER SHARE, BASIC AND DILUTED                0.32           0.30
                                               ============   ============

                 NEW ORIENTAL ENERGY & CHEMICAL CORP.
                     CONSOLIDATED BALANCE SHEETS
                                ASSETS
                                ------           March 31,      March 31,
                                                   2008           2007
                                               ------------   ------------
CURRENT ASSETS
  Cash and cash equivalents                    $  7,487,808   $  2,616,149
  Restricted cash                                 5,438,809      5,430,426
  Notes receivable, net of reserve of $135,563
   at March 31, 2008                                647,908      1,395,858
  Inventories                                     2,171,040      3,786,130
  Prepayments for goods                           1,196,831        383,639
  Taxes receivable                                        -        160,800
  Due from employees                                 13,213        113,275
  Other assets                                      134,993        204,508
  Current assets of discontinued operation                -         47,084
                                               ------------   ------------
     Total current assets                        17,090,602     14,137,869
                                               ------------   ------------
  Plant and equipment, net                       20,102,938     11,571,652
  Land use rights, net                            1,629,633      1,510,695
  Construction in progress                        9,740,638      5,208,277
  Deposits                                        1,978,389        267,757
  Deferred taxes                                    179,541        646,331
  Other long-term assets                             32,574         39,745
  Other assets of discontinued operation                  -        125,875
                                               ------------   ------------
     Total long-term assets                      33,663,713     19,370,332
                                               ------------   ------------
  TOTAL ASSETS                                 $ 50,754,315   $ 33,508,201
                                               ============   ============
              LIABILITIES AND SHAREHOLDERS' EQUITY
              ------------------------------------
CURRENT LIABILITIES
  Accounts payable                             $  1,656,883   $  2,259,834
  Other payables and accrued liabilities            545,090        409,025
  Short-term debt                                17,954,837      7,356,933
  Notes payable-current portion                           -        572,781
  Customer deposits                               4,220,527      5,385,425
  Payable to contractors                            506,364         96,861
  Due to related parties                          5,708,995      4,041,583
  Taxes payable                                   1,424,992         30,000
  Current liabilities of discontinued
   operation                                              -         12,711
                                               ------------   ------------
     Total current liabilities                   32,017,688     20,165,153
                                               ------------   ------------
LONG-TERM LIABILITIES
  Long-term notes payable                           517,168              -
  Deferred taxes                                    773,449      1,619,110
  Due to employees                                  156,517        115,816
                                               ------------   ------------
     Total long-term liabilities                  1,447,134      1,734,926
                                               ------------   ------------
TOTAL LIABILITIES                              $ 33,464,822   $ 21,900,079
                                               ============   ============
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
  Common stock, par value $0.001 per share;
   30,000,000 shares authorized, 12,640,000
   shares issued and outstanding as of March
   31, 2008 and 2007, respectively                   12,640         12,640
  Additional paid-in capital                      4,573,205      4,573,205
  Retained earnings (restricted portion was
   $950,327 and $440,182 as of March 31, 2008
   and 2007, respectively)                       10,626,499      6,563,558
  Accumulated other comprehensive income          2,077,149        458,719
                                               ------------   ------------
TOTAL SHAREHOLDERS' EQUITY                       17,289,493     11,608,122
                                               ------------   ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $ 50,754,315   $ 33,508,201
                                               ============   ============

About New Oriental Energy & Chemical Corp.

New Oriental Energy & Chemical Corp. which recently upgraded its US listing to the NASDAQ Global Market (NASDAQ: NOEC), is an emerging alternative fuel and specialty chemical manufacturer based in Henan Province, China. The Company is focused on the production of Dimethyl ether (DME), methanol and fertilizer products. The Company sells its products primarily through a network of distribution partners. Additional information on the Company is available on its website at www.neworientalenergy.com.

Safe Harbor Statement

This press release may contain forward-looking statements concerning New Oriental Energy & Chemical Corp. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. New Oriental Energy & Chemical Corp. undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.