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KHD Humboldt Wedag International Ltd. Awarded US$63 Million Contract

01/05/2006

HONG KONG, Jan. 5 /PRNewswire-FirstCall/ -- KHD Humboldt Wedag International Ltd. ("KHD") (Nasdaq: KHDH) is pleased to announce the signing of a US$63 million contract with the National Cement Co., Yemen. Under this contract KHD will provide the engineering and major components for a new 3,450 tonnes per day cement plant. The plant will be located in Al Anad, Yemen. The scope of supply and services of KHD for the contract include design, engineering and procurement of the process equipment for raw material preparation, clinker production and cement grinding. The plant is projected to be completed in early 2008.

With the recent award of this project and others projects, KHD's order intake will exceed US$379 million and the order backlog will be in the range of US$296 million. Order intake is defined as the total of all orders which are received during the respective period and order backlog is defined as the amount of orders received but not yet fulfilled.

Commenting, Michael Smith, President of KHD, said "The new contract in Yemen reflects KHD's continued growth in the key industrial markets of Asia, the Middle East and North America."

About KHD Humboldt Wedag International Ltd.

KHD Humboldt Wedag International Ltd. owns companies that operate internationally in the engineering services industry, and specializes in the cement, coal and mineral engineering services industries. To obtain further information on the Company, please visit our website at http://www.khdhumboldt.com.

Contact Information:

Allen & Caron Inc
Joseph Allen (investors)
joe@allencaron.com
(212) 691-8087

or

Len Hall (media)
(949) 474-4300
len@allencaron.com

Contact Information:

KHD Humboldt Wedag International Ltd
Rene Randall
(604) 683-8286
rrandall@bmgmt.com

SOURCE KHD Humboldt Wedag International Ltd.
Web site: http://www.khdhumboldt.com /
(KHDH)

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