SPAC China Healthcare Acquisition Corp Announces Definitive Agreement to Acquire Water Treatment Firm Europe Asia Huadu Environment Holding

On August 6, 2008, China Healthcare Acquisition Corp (CHM) announced a definitive agreement to acquire Europe Asia Huadu Environment Holding Pte, Ltd (EAHE).

Under the terms of the acquisition agreement, CHM will acquire 100% of the stock of EAHE for a total payment of 10,500,000 restricted shares of common stock of CHM. Based on the closing price of $5.75 per share on the American Stock Exchange on August 5, 2008, the value of the acquisition is $60,375,000.

In connection with the transaction, Mr. Wu Wing Shu of Sky Rainbow Investment Ltd. has agreed to purchase up to $8 million of CHM common stock in the open market at market prices.

Huadu Environment Holding manufactures water treatment equipment and provides construction and engineering services for water treatment projects in China. The transaction will provide the company with access to additional capital for expansion of its water treatment business. The company is a privately held Singapore company.

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