China Health Care Acquisition (NYSE AMEX:CHHM)

We entered into a stock purchase agreement with Europe Asia Huadu Environment Pte, Ltd., Teambest International Limited and Madame Wang Lahua (collectively “Seller”) for the purchase of all of the outstanding equity of Europe Asia Huadu Environment Pte, Ltd., a Singapore company with operations in China in the water treatment and environmental engineering industries. Effective November 10, 2008, we and the Seller mutually agreed to terminate the stock purchase agreement because our Board determined that it would not receive the votes of its stockholders required for the approval of the acquisition.

In addition, our Board of Directors (BOD) determined it was no longer possible for us to consummate a qualifying business combination prior to April 19, 2009. Based on this determination, our BOD concluded that it was in the best interests of stockholders to return to the holders of our shares acquired in our initial public offering all amounts held in the Trust Account as of the date of the distribution thereof.