NASSAU, Bahamas, Aug. 29 /PRNewswire-FirstCall/ -- Global Environmental Energy Corp. (Nasdaq OTC Bulletin Board: GEECF - Xetra Franfurt: GLI) confirmed today that its subsidiary, Biosphere Development Corp., a Corporation registered in the Commonwealth of the Bahamas, has signed a Cooperation Framework Agreement with their Chinese partners the Shenzhen Branch of Yankuang Group Co., Ltd., and the Shenzhen Rayes Group Co. Ltd. The parties signed and exchanged contracts on August 27th 2005 at a signing ceremony, which was held at the DaiYuTein Hotel, Beijing PRC. The Cooperation Framework Agreement provides for the formation before September 30th 2005 of a new company, which will apply for listing in Hong Kong. Biosphere Development Corp., will own 70% of this new publicly traded company. In addition to a number of new Joint Venture Companies, to manufacture, deploy and operate Biosphere Process(TM) System's in China, are being formed. The Shenzhen Branch of Yankuang Group Co., Ltd., and Biosphere Development Corp., will jointly incorporate "Bio/Yankuang Hong Kong Listed" in Hong Kong. It is intended that this company will attain a public listing in Hong Kong. The Shenzhen Branch of Yankuang Group Co., Ltd., will invest USD$4.5 million (Approx. RMB 36.5 million) in cash to capitalize "Bio/Yankuang Hong Kong Listed" and will hold 30% of the equity shares of "Bio/Yankuang Hong Kong Listed". Biosphere Development Corp., will own 70% of the equity in this new company and invest shares of Global Environmental Energy Corp., with an agreed value of USD$13.125 million United States Dollars (Approx. RMB106.3Million) "Bio/Yankuang Hong Kong Listed" the new Hong Kong (to be listed company), will establish the channel for investment and financing for the purpose of establishing Biosphere Process(TM) System's in the PRC market, developing the business and providing management to the Chinese company EEI on behalf of Biosphere Development Corp. The new Hong Kong (to be listed company) and Shenzhen Branch of Yankuang Group Co., Ltd. will jointly incorporate EEI in Shenzhen, PRC. Biosphere Development Corp., and the Shenzhen Rayes Group Co., Ltd., will jointly incorporate Licensing Asia in Hong Kong. Biosphere Development Corp., will own 51% of the equity shares of Licensing Asia and the Shenzhen Rayes Group Co., Ltd., will own 49% of the equity shares of Licensing Asia. Biosphere Development Corp., will grant a license to the Biosphere Process(TM) System technology and relevant rights thereto to Licensing Asia to manufacture, market, sell and operate the Biosphere Process(TM) System in China. Licensing Asia will also establish the first Chinese Biosphere Process(TM) System in China and thereafter provide a center of Biosphere Process(TM) Technology expertise in China. The registered capital of EEI upon its incorporation shall be USD$10 million United States Dollars. (Approx. RMB 81 Million) "Bio/Yankuang Hong Kong Listed" will invest USD$4 million United States Dollars(Approx RMB 32.4 Million) in cash and hold 40% of the equity shares of EEI; Shenzhen Branch of Yankuang Group Co., Ltd., will invest USD$6 million United States Dollars(Approx. RMB 48.6 Million) and hold 60% of the equity shares of EEI. EEI will in turn invest in and control 51% of the shares of each Local Operating Company. The objective is to establish Local Operating Companies in every town and city in China. The Local Operating Companies will purchase and operate Chinese manufactured Biosphere Process(TM) System's. These Chinese manufactured Biosphere Process(TM) System's will be manufactured at a new manufacturing base to be provided to the parties by the Chinese Partners for production of Biosphere Process System(TM)'s in China. EEI shall be responsible for the establishment and financing of the manufacturing base. The new Hong Kong (to be listed company), together Shenzhen Branch of Yankuang Group Co., Ltd., EEI and Biosphere Development Corp., will work with the Chinese company EET, a company managed by the Shenzhen Rayes Group Co. Ltd. EET will invest in the Local Operating Companies, arrange financing and manage all local logistics and permit requirements. Licensing Asia will purchase the first Chinese Biosphere Process System directly from Biosphere Development Corp for deployment in China. There after Biosphere Process Systems will be manufactured in China for sale and deployment in China. The Parties have chosen Shenzhen, Yantai and Guiling as suitable cities to establish an additional 3 to 5 Biosphere Process System's before 30 June 2006 and establish no less than 30 Biosphere Process System's before 31 December 2006. This stage of the program is estimated to generate gross sales in excess of USD$200 million. The parties have agreed to build no less than 1300 units of Biosphere System(TM) waste treatment systems in the PRC within 5 years. . This stage of the program is estimated to generate gross sales in excess of USD$4 billion per annum. About the renewable energy market in China The new joint venture will open the Chinese market (a estimated population of 1,298,847,624, http://www.cia.gov/) for Biosphere Development Corp's Biosphere(TM) Process System's. China, which is already experiencing an electricity shortfall of 450 million to 550 million kilowatts per annum, is set to quadruple its national economy to USD$6.8 trillion per annum by 2020. (http://www.freerepublic.com/). With Chinese authorities planning to achieve a target of 10% of electric power generation from renewable energy between 2010 and 2012, many local governments, such as Beijing, Shenzhen, Tianjin, have enacted local policies to encourage municipal solid waste gasification projects, like the Biosphere(TM) Process System. Beijing will invest RMB 54 Billion (@USD$6.6 Billion United States Dollars) to develop and encourage municipal solid waste gasification projects with the cities paying subsidies to companies involved in municipal solid waste gasification. A further example of the gravity with which these projects are being undertakes is provided by the city of Shenzhen in Guangdong province, which plans to build 7 new municipal solid waste gasification facilities this year (2005) while closing existing municipal solid waste landfills. Shenzhen's goal for 2005 is to divert 9,100 tons of municipal solid waste per day away from landfills and into gasification. This large venture has been instituted to fulfill an urgent need for waste disposal and energy generation in China. During the last two decades, the economy of China has been growing at an annual rate of almost 10%. The total amount of waste generated has been growing at a similar pace of 8-10% annually. Currently, every Chinese person produces every year on average 440 kg of solid waste. Using this waste as a fuel source can do much to alleviate China's growing energy needs while reducing their reliance on fuel oil and imports. According to a report from the China Power Enterprise Association periodic blackouts are set to continue in the coming months in south China's Guangdong Province, east China's Anhui, Jiangsu and Zhejiang provinces and Shanghai, southwest China's Sichuan Province and Chongqing Municipality and Northwest China's Gansu, Qinghai and Shaanxi provinces and the Ninxia Hui Autonomous Region, and north China's Hebei and Shanxi provinces. Eastern China has shortages of 10 to 15 million kilowatts, southern China is short 5 million kilowatts, northern China is short 3 million kilowatts, and central China is short 3 million kilowatts. These shortages affect present industries as well as new industrial opportunities. About the Shenzhen Rayes Group Co. Ltd. The Shenzhen Rayes Group Co. Ltd., also known as China Online, is registered in Shenzhen and its main business is in developing network infrastructure and services via China Online (COL). Since 1994, COL has deployed a large-scale ISP network with national coverage of 105 major cities in China. COL was approved by MII (Ministry of Information Industry, formerly Ministry of Post and Telecommunications) in 1997 as a national ISP and related services provider. COL and China Telecom's 169 national ISP networks have a strategic alliance since 1998. Shenzhen Rayes Group's registration capital is RMB 0.19 billion (@USD$23.4 Million United States Dollars) with total asset of RMB 2 billion (@USD$246.9 Million United States Dollars). Its business ranges from investment, real-estate development, ISP, to international business. From 1996 to 1998, China Online was China's largest systems integration and network solutions provider and was an industry leader in providing business-to-business Internet and software applications, infrastructure applications, network, and integration applications solutions for Chinese companies, with emphasis in servicing the manufacturing sector of Southern China. China Online has operations in 105 large and medium-sized cities throughout China with over 2,000 professionals on staff at its peak period. Key partners and customers of the Rayes Group include Microsoft and Compaq of the U.S., the Beijing Telecom Bureau, and the China Industrial Economy Association. About the Yankuang Group Co., Ltd. Yankuang Group Co., Ltd., has assets of RMB 22.844 billion (@USD$2.82 Billion United States Dollars) and more than 50 subsidiaries. The Yankuang Group is engaged in coal production and sales, coal chemical, civil engineering, etc. with annual total sales income of RMB 11.258 billion (@USD$1.39 Billion United States Dollars). The Yankuang Group Co., Ltd.'s subsidiary Yangzhou Coal Mining Company Limited, has been successfully listed on the New York Stock exchange, Hong Kong Stock Exchange and Shanghai Securities Exchange, respectively, in 1998 (Hongkong, Shanghai and New York Stock Exchange (ADS: YZC). About Biosphere Development Corp. As provided for in Biospheres contracts with its Chinese partners this project is expected to manufacture, market, deploy and participate in the operation of at least 1,300 of Biosphere Development Corp's., Biosphere Process(TM) Systems in China by 2010 and as per Biosphere's agreements this project will be financed by Biosphere's Chinese partners together with a consortium of Chinese banks. Biosphere Development Corp's unique proprietary technology, EcoTechnology(TM), supplies energy through an efficient and environmentally safe process. The Biosphere Process(TM) System, a central part of the EcoTechnology(TM) system, can safely and efficiently process traditional and non-traditional waste materials into electricity and other beneficial by- products. The Biosphere Process(TM) can assist in solving the global waste problem by converting into clean, green electricity such waste materials as: municipal solid waste (MSW), agricultural surpluses, agricultural effluents, forestry wastes, sewage sludge, medical waste, industrial wastes, flared natural gas, shale oil, sour natural gas, high sulfur oils, waste bilge oil, waste drilling muds and fluids, and many other traditional and non-traditional waste materials. Biosphere Development Corp., was initially formed as a subsidiary of Global Environmental Energy Corp, (OTC:GEECFOTC:-OTC:FWB:LFT) (BULLETIN BOARD: GEECF - FWB:LFT) . Global Environmental Energy Corp. maintains a web site at http://www.globalenvironmentalenergy.com/index.htm. Biosphere Development Corp., intends to become a fully reporting and trading company in the near term future. About Global Environmental Energy Corp. Global Environmental Energy Corp., is a Corporation registered in the Commonwealth of the Bahamas and publicly traded on stock markets both in Germany and the United Sates (the Corporation). Global Environmental Energy Corp. is becoming a fully integrated energy company whose interests will include traditional oil and gas and alternative energy sources, environmental infrastructure and electrical micro-power generation. Note to Investors This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of the 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. The forward-looking information is based upon current information and expectations regarding Global Environmental Energy Corp. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecasted in such forward-looking statements. Global Environmental Energy Corp. assumes no obligation to update the information contained in this press release. Global Environmental Energy Corp.'s future results may be impacted by risks associated with rapid technological change, new technological developments and implementations, execution issues associated with new technology, manufacturing production to meet demand, litigation, media publicity and the negative impact this could have on sales, competition, financial and budgetary constraints of prospects and customers, international order delays, dependence upon limited source suppliers, fluctuations in component pricing, government regulations, dependence upon key employees, and its ability to retain employees. GEECF's future results may also be impacted by other risk factors listed from time to time in its SEC filings. DATASOURCE: Global Environmental Energy Corp. CONTACT: Dr. C. A. McCormack of Global Environmental Energy Corp., +1-242-323-0086, Web site: http://www.globalenvironmentalenergy.com/ http://www.cia.gov/ http://www.freerepublic.com/

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