MKA Capital Exchanges Its Assets and Enters Into Resources Recovery Business

Date: May 30, 2006

Source: Business Wire

MKA Capital, Inc. (OTCBB: MKAC) announced today it has entered into a share exchange agreement which will allow it to dispose the aviation leasing business and enter into the flourishing industrial resources recovery business.

In order to increase the shareholders' values, the company has seized the opportunity to dispose its 75% ownership in MK Aviation, SA due to certain performance issues, in exchange for 100% of Sancon Recycling Pty Limited. Sancon is an industrial waste management company with its operations based in Australia, Hong Kong and China. Sancon serves a wide range of industrial clients throughout Australia by collecting and recycling their industrial wastes before exporting to China for re-entry to manufacture cycles as recovered raw materials. Sancon currently exports more than 6,000 tons of plastic, cardboard, paper and other forms of recyclable materials every year. Through its Hong Kong based affiliates it imports into China 25,000 tons of recyclable materials every year for resell after further processing either from its own processing plants or other processing plants.

"The use of recycled material is both environmentally friendly and a key part of today's competitive manufacturing process to lower costs. The soaring raw material price for manufactures, especially in China has created tremendous demands for recycled materials. At Sancon, we are developing fully the opportunities we have identified between the soaring manufacturing needs in China and the dynamic process to recycle waste materials such as plastics, cardboard, and paper," comments Mr. Jack Chen, president of Sancon. "We are very pleased to become a part of a public company through MKA Capital. This will allow us to tap into the capital market to fund our expansion program to satisfy the insatiable demands from our manufacturing customers."

MKA Capital will change its name to Sancon Resources Recovery Inc.

There are a total of 32 companies in the waste management industry listed in the US with combined market capitalization of $38 billion and average PE ratio of 22. Plastics consumption has been growing every year in developed western nations for decades, and accounts for over 10% of municipal solid waste in the US. Packaging represents the largest single factor of plastic use in developed nations and on average accounts for 35% of plastics consumption. Recycling of plastics waste, according to the United National Environmental Programme, led by the European Union more than doubled, from 7% in 1990 to 15% in 2002. Packaging goods had the biggest increase where a 25% recycling of packaging waste in 2001 was significantly exceeded in 2002 where 54% was recycled in the member countries of the EU.

About Sancon Recycling Pty Ltd

Sancon Recycling Pty Ltd is a leading industrial recycling company with operations based in Melbourne Australia and Hong Kong (SAR) China. Sancon aims to provide solutions to today's soaring raw material cost for manufactures and assists in solving our environmental problems. Today, Sancon services many industrial clients throughout Asia and Australia region and exports more than 25,000 tons of recycled industrial waste material annually to its trading partners and manufacturers in China. Sancon's main operations and services include industrial eco-friendly consulting, collection and reprocess of recyclable materials such as plastic, cardboard, and paper before its re-entry to manufacture cycles as raw materials. The use of recycled material is both environmentally friendly and a key part of today's competitive manufacturing process to lower costs. The soaring raw material price for manufacturers has created tremendous demands for recycled materials, especially for China as it gains global manufacturing dominance.

About MKA Capital, Inc.

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