Euro Tech Announce 2011 Results, Still Investing in BWTS

Euro Tech Holding record fall in profits but continue with investment in ballast water treatment system opportunities

Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2011 ("Fiscal 2011").

The Company's revenues for Fiscal 2011 were approximately $20,213,000, an approximate 9% decrease compared to approximately $22,305,000 in the Company's fiscal year ended December 31, 2010 ("Fiscal 2010"). The net income for Fiscal 2011 was approximately $521,000, as compared to net loss of approximately $1,087,000 for Fiscal 2010.

The decrease of the company's revenues was mainly due to further decline in revenues from trading activities as some major foreign suppliers market and sell their products directly or through many distributors in China instead of using the Company as their sole distributor as in the past.

The net income for Fiscal 2011 was mainly due to the increase in contributions from the affiliate, particularly Blue Sky, gain on disposal of a property and decrease in selling and administrative expenses which offset the declines in total revenues and gross profit, research and development costs for Ballast Water Treatment System (BWTS) and additional expenses for closing some non-profitable operations.

BWTS is an imminent requirement by The International Maritime Organization ("IMO") to prevent the biological unbalance caused by the estimated 12 billion tons of ballast water transported across the seas by ocean-going ships when their ballast water tanks are emptied or refilled. The market potential for retrofits and new installations of BWTS in these old and new ocean-going ships is enormous.