China Development Group Corp. (CTDC)

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Financial Results For the six months ended June 30, 2008 (unaudited)

HONG KONG, September 29, 2008, China Technology Development Group Corporation (NASDAQ: CTDC) (collectively, the “Company”, “We”, “us”, or “our”) announced today its unaudited consolidated financial results for the six month period ended June 30, 2008 (without any footnotes disclosure).

The Group decided to focus on the strategic expansion in the solar business and proposed to dispose of its equity interest of Jingle Technology Co Ltd. (”Jingle”) and its subsidiaries, BHLNet and BBHL (collectively, the “IT operations”). The disposal of Jingle was approved by the written resolution of the Board passed on May 9, 2008.

As at June 30, 2008, our first SnO2 solar base plate production line in the factory which located at China Merchants Zhangzhou Development Zone in Fujian Province of PRC concluded its installation and testing and hence, no revenue has been generated and our revenues were contributed solely from IT operations in 2008 Period.

The Company’s IT operations were classified as held for sale in the six months ended June 30, 2008(the “2008 Period”). The gain from this discontinued operation represented as the below:

a) Revenues. Revenues decreased by US$87,000, or 25.89%, from US$336,000 in the six months ended June 30, 2007 (the “2007 Period”) to US$249,000 in 2008 Period.

b) Cost of sales. Cost of sales decreased by US$97,000, or 61.78%, from US$157,000 in 2007 Period to US$60,000 in 2008 Period. The decrease in cost of sales of our IT operations was in line with the decrease in our revenues.

c) Gross profit. Gross profit increased by US$10,000, or 5.59%, from US$179,000 in 2007 Period to US$189,000 in 2008 Period. As a percentage of sales, the gross profit margin of our IT operations increased by 22.63bps, from 53.27% in the 2007 Period to 75.90% in the 2008 Period. The increase was due primarily to no revenue from CA which was offered previously lower prices.

d) Selling expenses. Selling expenses decreased by US$25,000, or 43.10%, from US$58,000 in 2007 Period to US$33,000 in 2008 Period due to downsize of certain technical support staffs.

e) General and administrative expenses. General and administrative expenses decreased by US$39,000, or 15.48%, from US$252,000 in 2007 Period to US$213,000 in 2008 Period.
General and administrative expenses (“G&A expenses”) increased by US$700,000, or 102.94%, from US$680,000 in 2007 Period to US$1,380,000 in 2008 Period. The increase in G&A expenses was due primarily to the combined effects of the following:

a) G&A expenses of our corporate office increased by US$507,000, or 81.77%, from US$620,000 in 2007 Period to US$1,127,000 in 2008 Period. The significant increase was due primarily to a stock-based compensation of US$340,000 was recognized in 2008 Period, compared to nil stock-based compensation was recognized in 2007 Period. In addition, there was an increase in staff costs and professional fee in relation to corporate and securities matters.

b) G&A expenses of our Solar Operations increased by US$97,000, or 161.67%, from US$60,000 in 2007 Period to US$157,000 in 2008 Period as a result of the expansion of production line at China Merchants Zhangzhou Development Zone in Fujian Province of PRC.

Non-operating expenses. Non-operating expenses mainly represented US$99,000 of loss on disposal of available-for-sale securities and US$13,000 of exchange loss on bank account denominated in Hong Kong dollars in 2008 Period.

The Company also maintained a deposit of US$770,000 with China Biotech Holdings Limited, the major shareholder of the Company, for the purpose of financing potential investments.

In addition, we had received US$1,154,000 from China Biotech Holdings Limited for assignment agreement relating to disposal of its entire interests in China Natures Technology Inc(“CNT”) between Total Trump and China Biotech Holdings Limited in 2008 Period.

The Company recorded it as sharehoelders’ contribution in the additional paid-in capital in shareholders equity in 2008 Period. The additional paid-in capital did not have any dilution to shareholders.

As a result, the Company reported a net loss of US$1,418,000 in 2008 Period as compared to a net income of US$796,000 in 2007 Period.

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