Keyuan Petrochemicals Inc. Corporate Update

                 Keyuan Petrochemicals Inc. Corporate Update

PR Newswire

NINGBO, China, March 1, 2013

NINGBO, China, March 1, 2013 /PRNewswire-FirstCall/ --Keyuan Petrochemicals
Inc. (OTCQB: KEYP), ("Keyuan" or "the Company"), an independent manufacturer
and supplier of various petrochemical products in China, is pleased to
announce today a corporate update.

The Company has been focusing on building its core business. Sales for the
three months ended December 31, 2012 were approximately $221.6 million
(unaudited) compared to sales of $158.0 million for the same period in 2011,
an increase of $ 68.6 million, or 43.4%. Net income for the three months ended
December 31, 2012 was $ 10.7 million (unaudited).

Keyuan started a corporate buy back of its common stock in January 2013 and is
continuing the buyback of $2 million of common stock at a price up to $1.50 a
share. The Company's common stock may be purchased from time to time in the
open market or in privately negotiated transactions. The timing and amount of
any shares repurchased will be determined by the company's management based on
its evaluation of market conditions and other factors. Repurchases may also be
made under a Rule 10b5-1 plan, which would permit shares to be repurchased
when the company might otherwise be precluded from doing so under insider
trading laws. The repurchase program may be suspended or discontinued at any
time. Any repurchased shares will be available for use in connection with its
stock plans and for other corporate purposes.

Keyuan is funding the share repurchases from cash on hand. As of September 30,
2012, the company had approximately $201 million of cash and equivalents and
approximately 58 million shares of common stock and 5.33 million shares of
Series B Preferred stock outstanding.

The Company further announced that it has reached a settlement in a case filed
by the United States Securities and Exchange Commission on February 28, 2013
in the United States District Court for the District of Columbia against the
Company, alleging the Company violated Section 17(a)(2) and 17(a)(3) of the
Securities Act of 1933, Section 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the
Securities Exchange Act of 1934, and Rules 12b-20 and 13a-13 thereunder. Under
the settlement terms and without admitting or denying the complaint's
allegations, the Company will pay a $1 million civil penalty and will be
permanently enjoined from violating certain securities law. The settlement
remains subject to approval by the United District Court for the District of
Columbia, which must approve its terms and enter the final judgment.

"During the approximate year-and-a-half investigation, the Commission reviewed
the Company's documents regarding finance, business, manufacturing and many
other related aspects. In order to actively coordinate and cooperate with the
Commission's investigation, the significant attention Keyuan's management team
paid to this matter affected the Company's operations. Now that the Company
has been able to resolve this matter with the Commission, the Company can
focus on business operations and economic performance, with a particular
emphasis on executing its business plan while remaining compliant in the
United States. We are committed to adhering to the highest standards of
accounting and corporate governance" declared Chunfeng Tao, Keyuan's Chief
Executive Officer. "We believe Keyuan's core earnings potential will continue
to improve and that our stock represents an attractive value."

About Keyuan Petrochemicals, Inc.

Keyuan Petrochemicals, Inc., established in 2007 and operating through its
wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo,
China and is a leading independent manufacturer and supplier of various
petrochemical products. Having commenced production in October 2010, Keyuan's
operations include an annual petrochemical manufacturing design capacity of
720,000 MT for a variety of petrochemical products, with facilities for the
storage and loading of raw materials and finished goods, and a technology that
supports the manufacturing process with low raw material costs and high
utilization and yields. In order to meet increasing market demand, Keyuan
plans to expand its manufacturing capacity to include a SBS production
facility which was completed in September 2011 and one production line has
entered into commercial production, additional storage capacity, a raw
material pre-treatment facility, an asphalt production facility, and an ABS
production facility.

Cautionary Statement Regarding Forward-Looking Information

This press release may contain certain "forward-looking statements" relating
to the business of Keyuan Petrochemicals, Inc., and its subsidiary companies.
All statements, other than statements of historical fact included herein are
"forward-looking statements" including statements regarding the impact of the
proceeds from the private placement on the Company's short term business and
operations, the general ability of the Company to achieve its commercial
objectives, including the ability of the Company to sustain growth; the
business strategy, plans and objectives of the Company and its subsidiaries;
and any other statements of non-historical information. These forward looking
statements are often identified by the use of forward-looking terminology such
as "believes," "expects" or similar expressions, involve known and unknown
risks and uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may prove to be
incorrect. Investors should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. The
Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of factors,
including those discussed in the Company's periodic reports that are filed
with the Securities and Exchange Commission and available on its website
(http://www.sec.gov). All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking statements.

For more information, please contact:
US Contact Information:

Jim Jiang

Keyuan Petrochemicals, Inc

Phone: 646-705-1386

Email: jzm0580@gmail.com

Web: www.keyuanpetrochemicals.com



Company Contact Information:

Angel Gu

Keyuan Petrochemicals, Inc

Phone: +0086-1-381-986-4827

Email: angelgu@keyuanpetrochemicals.com 

Web: www.keyuanpetrochemicals.com

SOURCE Keyuan Petrochemicals, Inc.

Website: http://www.keyuanpetrochemicals.com