On May 6, 2013 at the annual shareholder meeting, the Registrant will announce the planned sale of approximately 238.43 acres of industrial land, including 75,161 square meters of construction area, by the Registrant’s subsidiary, Tianjin Baoding Environmental Science and Technology Co., Ltd. The Baodi Economic Development Zone Management Committee, which has jurisdiction over property located in the Economic Development Area in which the property is situated, has agreed to permit the sale and has provided the guaranty that the sale will be completed. The Registrant acquired the property for approximately $5.28 million on November 26, 2010 and will sell it along with all construction for approximately $18 million. Including the costs of construction and operation expended by the Registrant since acquisition, the Registrant expects to break even on the sale. The sale is expected to close before the end of 2013.