Sinopec Corp. Reports Improved Results for the First Three Quarters of 2007

China Petroleum & Chemical Corporation ("Sinopec Corp.” or "the Company”) (HKEX: 386; NYSE: SNP; LSE: SNP; CH: 600028) today announced its results for the three quarters ending 30 September 2007. In the first three quarters of 2007, according to the PRC Accounting Rules and Regulations, the Company’s income from operations was RMB 875.218 billion, representing an increase of 13.64% over the same period of the preceding year. Net profit attributable to the equity shareholders of the Company was RMB 48.683 billion, representing an increase of 43.65% over the same period of last year. According to International Financial Reporting Standards (IFRS), the Company’s business turnover and other operating revenues were RMB 875.218 billion, representing an increase of 13.62% over the same period of the preceding year. Profit attributable to shareholders of the Company was RMB 49.818 billion, representing an increase of 43.21% over the same period of the preceding year. Operating Highlights Principal financial data and indicators prepared in accordance with the PRC Accounting Standards     At 30 September2007   At 31 December2006   Changes compared with thepreceding year-end (%) Total assets (RMB million)   660,279   596,527   10.69 Shareholders’ funds attributable to equity shareholders of the Company (RMB million)   292,874   257,893   13.56 Net assets per share (RMB/share)   3.378   2.974   13.56 Adjusted net assets per share (RMB/share)   3.317   2.901   14.34     Three-month period as at 30 September (July ~ September)   Nine-month period as at 30 September (January ~ September)   Year2007   Year2006   Year-on-yearchanges (%)   Year2007   Year2006   Year-on-yearchanges (%) Net cash flow from operating activities (RMB million)   38,280   23,780   60.98   102,277   47,973   113.20 Net cash flow from operating activities per share (RMB)   0.442   0.274   60.98   1.180   0.553   113.20 Net profit attributable to the equity shareholders of the Company (RMB million)   13,758   12,764   7.79   48,683   33,889   43.65 Basic earnings per share (RMB/share)   0.159   0.147   7.79   0.561   0.391   43.65 Diluted earnings per share (RMB/share)   0.159   0.147   7.79   0.561   0.391   43.65 Basic earnings per share (before extraordinary items) (RMB/share)   0.157   0.149   5.37   0.559   0.394   41.88 Return on net assets (%)   4.70   5.33   (0.63) percentage points   16.62   14.16   2.46 percentage points Return on net assets (before extraordinary items) (%)   4.64   5.41   (0.77) percentage points   16.56   14.28   2.28 percentage points Principal financial data and indicators prepared in accordance with International Financial Reporting Standards ("IFRS”)     At30 September 2007   At31 December 2006   Changes comparedwith the precedingyear-end (%) Total assets (RMB millions)   672,574   603,077   11.52 Total equity attributable to equity shareholders of the Company (RMB million)   298,907   262,845   13.72 Net assets per share (RMB/share)   3.448   3.031   13.72 Adjusted Net assets per share (RMB/share)   3.387   2.958   14.54     Three-month period as at30 September(July ~ September)     Nine-month period as at30 September(January ~ September)     Year2007   Year2006   Year-on-yearchanges (%)   Year2007   Year2006   Year-on-yearchanges (%) Net cash flow from operating activities (RMB million)   36,850   24,691   49.24   98,486   43,760   125.06 Profit attributable to the equity shareholders of the Company (RMB million)   13,628   12,917   5.50   49,818   34,787   43.21 Basic earnings per share (RMB/share)   0.157   0.149   5.50   0.575   0.401   43.21 Return on net assets (%)   4.56   5.21   (0.65)percentagepoints   16.67   14.04   2.63 percentage points Summary of Principal Operating Results Operating results for business segments prepared in accordance with International Financial Reporting Standards ("IFRS”) Items   Nine-month period as at 30 September (RMB millions) Operating Results   2007   2006 Exploration and Production   37,265   52,594 Refining   214   (29,651) Marketing and Distribution   26,026   20,576 Chemicals   11,097   10,245 Corporate and Others   (537)   (204) Total Operating Results   74,065   53,560 Market Environment and Business Review In the first three quarters of 2007, China’s national economy continued to grow at a relatively rapid pace. GDP increased by 11.5% while the domestic demand for petroleum and petrochemical products both continued to rise. In the third quarter, the Company stepped up the connection between production management and marketing, solidly promoted the construction of key projects and focused on energy conservation and a reduction of discharged pollutants, thereby ensuring safe production and market supply. Satisfactory operating results were achieved in spite of the pressure on production and business operations caused by the continued climbing price of crude oil in the international markets. Meanwhile, our processing volume of crude oil, selling volume of finished oil products, and production output of ethylene and synthetic resins have all continued to grow. Review of Operating Results Exploration & Production: With the price of crude oil price hovering at record highs, Management took the opportunity to accelerate construction of additional capacity and development of low-grade reserves, which helped lead to a year-over-year increases of 2.23% and 11.74% in the yield of crude oil and natural gas, respectively. The Company also officially commenced the key national "Sichuan-to-East China Gas Transport" project. Oil refining: The Company worked hard to adjust and optimize its structure, purchase and process crude oil resources, increase the output of finished oil and ensure market supply. The amount of processed crude oil increased 6.52% year-over-year. Marketing and distribution: Sinopec Corp. has actively worked to secure domestic and overseas resources to ensure a stable and orderly supply to the domestic market. As a part of this, the Company capitalized on its modern logistics system to maximize the effectiveness of its pipeline network. Additionally, other improvements to the Company’s transportation network and overall marketing efforts further contributed to the strong results. During the first three quarters of 2007, the distribution volume of finished oil products and retailing volume of finished oil products in the domestic market expanded by 6.63% and 4.56% on a year-over-year basis, respectively. Chemicals: Sinopec Corp. accomplished safe and stable production in the Company’s chemical facilities under high load, increased the yields of major products, produced a greater number of high value-added products, and implemented changes at various branch outlets that enable increasing specialization in certain chemical products in order to enhance the competitive strengths of the Company in separate markets. In the initial three quarters of 2007, the Company’s yield for ethylene and synthetic resin increased by 7.80% and 14.61% on a year-on-year basis, respectively. Summary of Principal Production Activities for the First Three Quarters Operating Data   Unit   Nine-month period as atSeptember 30   Year-on-year changes (%)     Year 2007   Year 2006   Exploration and Production Crude oil production   Million tonnes   30.69   30.01   2.23 Nature gas production   Hundred million cubic meters   59.76   53.48   11.74 Crude oil price realized   RMB / Tonne   2,955.57   3,388.03   -12.76% Natural gas price realized   RMB / Thousand cubic meters   809.94   750.70   7.89% Refining Processing volume of crude oil   Million tonnes   115.80   108.70   6.53 Production output of gasoline, diesel oil and kerosene   Million tonnes   68.83   64.73   6.33 Of which: Gasoline   Million tonnes   18.41   16.97   8.49   Diesel oil   Million tonnes   44.11   43.01   2.56   Kerosene   Million tonnes   6.31   4.75   32.84 Production output of chemical light oil   Million tonnes   17.98   17.16   4.78 Recovery rate of light oil   %   74.41%   74.64%   -0.23 percent Total rate of commodification   %   93.77%   93.63%   0.14 percent Marketing and Distribution Total domestic distribution volume of finished oil products   Million tonnes   88.57   83.06   6.63 Of which: Retail volume   Million tonnes   55.82   53.39   4.55   Distribution volume   Million tonnes   15.46   14.49   6.69   Wholesale volume   Million tonnes   17.28   15.18   13.83 Total number of petrol stations   Station   28,976   28,546   1.51 Of which: Owned and self-operated   Station   28,280   27,746   1.92   Franchised   Station   696   800   -13.0 Fueling charge per petrol station (Note 1)   Tonne/station   2,632   2,566   2.57 Chemicals (Note 2) Production output of ethylene   Thousand tonnes   4,887   4,534   7.79 Production output of synthetic resins   Thousand tonnes   7,207   6,289   14.60 Production output of synthetic rubber   Thousand tonnes   546   490   11.43 Synthetic fiber monomers and polymers   Thousand tonnes   5,921   5,401   9.63 Synthetic fibers   Thousand tonnes   1,074   1,137   -5.54 Urea   Thousand tonnes   1,229   1,321   -6.96 Notes 1: The fueling charge per petrol station data is meant for the annual average; Notes 2: Including 100% outputs of Yangtze-BASF and Shanghai Secco. Capital expenditure In the first three quarters of 2007, the Company’s accumulated capital expenditure totaled RMB 59.91 billion, of which RMB 30.807 billion was spent in the Exploration and Production Segment, which has achieved a variety of significant positive results in terms of oil and natural gas exploration, enhanced the existing crude oil production capacity by 4.51 million tonnes/year and the existing natural gas production capacity by 0.985 billion cubic meters/year. Capital expenditure of the Refining Segment was approximately RMB 12.178 billion. The Yanshan 10MT Refinery Transformation & Expansion Project was completed and put into operation; Refinery projects in Qingdao, Luoyang, Wuhan, Gaoqiao and other locations as well as oil jetty projects have been proceeding well. Capital expenditure of the Chemicals Segment was RMB 7.207 billion. The Maoming high pressure polyethylene (BPPE) project, Shanghai glycol project and Yangtse-Jinpu GR-S project have been completed and put into operation, while the Tianjin ethylene refining & chemical integration project, Zhenhai megaton ethylene project and Fujian ethylene project are proceeding as scheduled. RMB 7.948 billion was spent in the Marketing & Distribution Segment, which has made preliminary accomplishments in erecting and taking over petrol stations in prime areas along highways, and increased the total number of petrol stations in the Company’s possession by 547. The remaining RMB 1.770 billion was spent in the Corporate and Others segments. Notice: Sinopec Corp. will host a teleconference to discuss the Company’s results for the third quarter in 2007 on Tuesday, October 30, 2007, at 9:00 a.m. Beijing time (1:00 a.m. London time and 9:00 p.m., Monday October 29, 2007, New York time) at (852) 3006 8101; access code: Sinopec. A 24-hour replay will be available at (852) 3006 8101; access code: 558553. The teleconference will also be archived on www.sinopec.com at 8:30 a.m. on October 30, 2007 Hong Kong time. About Sinopec Corp. Sinopec Corp. is a Chinese company listed in Hong Kong, New York, London and Shanghai. The Company is an integrated energy and chemical company with upstream, midstream and downstream operations. The principal operations of Sinopec Corp. and its subsidiaries include: exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; producing, trading, transporting, distributing and marketing refined oil products; and producing and distributing chemical products. Based on 2005 turnover, Sinopec Corp. is one of the largest listed companies in China. The Company is one of the largest crude oil and petrochemical companies in China and Asia. It is also one of the largest gasoline, diesel and jet fuel and other major chemical products producers and distributors in China and Asia. For additional information about Sinopec Corp., please visit the Company’s website on www.sinopec.com Disclaimer This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the level of demand for telecommunications services; competitive forces in more liberalized markets; the effects of tariff reduction initiatives; changes in the regulatory policies and other risks and factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.