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China Healthcare Acquisition Corp Signs Definitive Agreement to Acquire Europe Asia Huadu Environment Holding Pte, Ltd.
Date:8/6/2008

and

-- 1,300,000 shares if net income of EAHE exceeds US$20,000,000 for the year ended December 31, 2010;

provided, that if net income for the first earnout period does not exceed $12,000,000 the owner of EAHE will be entitled to the earnout payment for such period if cumulative net income for the first earnout period and second earnout period exceeds $28,000,000 or if cumulative net income for the first and second earnout periods does not exceed $28,000,000, then if the cumulative net income for first, second and third earnout periods exceeds $48,000,000. Similarly, if net income for the second earnout period does not exceed $16,000,000, the owner of EAHE will be entitled to the earnout payment for such period if cumulative net income for the second earnout period and third earnout period exceeds $36,000,000.

The owner of EAHE has agreed to share 49% of any shares received in the earnout with CHM's management team.

Following the completion of the transaction Global Huadu Environment Holdings, Inc.'s board will consist of 5 members, 3 from CHM's board, 1 from EAHE and 1 additional member to be appointed by EAHE.

The closing of the acquisition is subject to customary closing conditions, including approval of the acquisition agreement by holders of a majority of CHM's outstanding stock. In addition, the closing is conditioned on less than 20% of the common stock held by the public shareholders of CHM voting against the acquisition and electing to convert their stock into cash from the trust fund established in connection with CHM's initial public offering. No additional regulatory approvals are required from Singapore or China authorities to consummate the acquisition.

About China Healthcare Acquisition Corp

CHM is a publicly traded, special purpose acquisition company formed to acquire one or more businesses with operations primarily in the People's Republic of China. As of June 30, 2008, CHM had in its trust account a
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SOURCE China Healthcare Acquisition Corp
Copyright©2008 PR Newswire.
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