Duoyuan Global Water Announces Further Delay in Filing Annual Report on Form 20-F Pending Completion of Investigation

BEIJING, July 20, 2011 /PRNewswire-Asia-FirstCall/ -- Duoyuan Global Water Inc. (NYSE: DGW) ("Duoyuan" or the "Company"), a leading China-based domestic water treatment equipment supplier, announced that it will further delay the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2010 that was originally due on June 30, 2011.  The Company has previously filed a Form 12b-25 notification of late filing with the United States Securities and Exchange Commission to extend the filing due date to July 15, 2011.

As previously announced, the Special Investigation Committee of the Company's Board of Directors is conducting an independent investigation into certain accounting and financial reporting matters.  The investigation continues to make progress and currently includes review of documents, interviews of key personnel and examination of financial records.

The Company will delay the Form 20-F filing until such time as the investigation has been completed. Trading in the Company's ADR's on the New York Stock Exchange ("NYSE") was halted on April 20, 2011, and the Company is optimistic that trading will resume (although there can be no assurance that this will occur) once the Special Investigation has been completed and the Company has filed its Form 20-F for the fiscal year ended December 31, 2010 with the SEC. The Company has been in regular contact with the NYSE, and will remain in contact as the investigation proceeds.  

About Duoyuan Global Water Inc.

Duoyuan Global Water Inc. is a leading China-based domestic water treatment equipment supplier. Duoyuan's product offerings address key steps in the water treatment process, such as filtration, water softening, water-sediment separation, aeration, disinfection and reverse osmosis. Duoyuan offers a comprehensive set of complementary products across three product categories: water conservation, including circulating water treatment; water purification; and water reuse treatment, including wastewater treatment. The Company has an extensive local distribution network, which provides proximity to end-user customers and responsiveness to local market demand. Learn more at www.duoyuan-hq.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. These forward-looking statements may include, but are not limited to, statements containing words such as "may," "could," "would," "plan," "anticipate," "believe," "estimate," "predict," "potential," "expects," "intends" and "future" or similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to change at any time. These forward-looking statements are based upon management's current expectations and are subject to a number of risks, uncertainties and contingencies, many of which are beyond the Company's control that may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Item 3. Key Information — Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2009 filed with the Securities and Exchange Commission on June 18, 2010, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Duoyuan Global Water Inc.