Exhibit 99.1



Euro Tech Holdings Company Limited Business Update And Auditor's
Resignation

Hong Kong - December 7, 2005 - Euro Tech Holdings Company Limited
(Nasdaq:  CLWT)  today announced that its group  company,  Yixing
PACT  Environmental Technology Company Ltd. ("PACT') has recently
been   awarded   a  US$  1.8  million  contract   by   a   French
global  manufacturer  of  beauty products.  The  contract  covers
design,   manufacture,   supply  and  installation   of   process
wastewater treatment plant for the French company's manufacturing
facilities  in  the  Jiangsu Province  of  China.  The  treatment
process   utilizes  advanced  chemical,  biological  and   carbon
absorption treatment processes. Due to the nature of the industry
(beauty products), the contract demands special attention to  the
architectural  and landscape aspects of the site, making  use  of
soil cover and suitable trees and shrubs.


Euro  Tech's Chairman and CEO, T.C. Leung, commented  that  "This
contract  reconfirms our direction to place greater  emphasis  on
developing an engineering solution business, rather than  relying
on  trading of equipment and instruments. The revenue and  income
from  trading activities are declining gradually as more and more
of  our  key  or exclusive suppliers, such as Hach and Eurotherm,
have  been  either directly marketing their products  or  selling
into  the  China  market  with other  distributors,  as  well  as
ourselves.  The  decline in trading of equipment and  instruments
may  negatively affect our overall result in the short term  even
though our engineering business and that of PACT is growing."


Mr. Leung also commented that "In order to expand our engineering
solution  business  further,  we are  in  discussion  with  third
parties  intending  to  invest  or  acquire  some  interests   in
companies  not  solely in water quality monitoring  business  but
also  in  air  pollution  control  business  such  as  flue   gas
desulphurization for power plants and similar businesses."


Recently,   PricewaterhouseCoopers  ("PWC")   resigned   as   our
independent  auditor.  PWC advised, by  separate  letter  of  its
concerns  relating to Euro Tech's readiness to  comply  with  the
Sarbanes  Oxley  Act  ("SOA") internal control  requirements  and
related  reporting  requirements and the sufficiency  of  current
management to carry out the work for same and asserted it had not
received  satisfactory  responses to remove  its  concerns.   The
SOA's internal control and related reporting requirements are not
applicable to Euro Tech until its fiscal year to end December 31,
2006.  Euro Tech intends to meet the SOA requirements in a timely
manner.  Euro  Tech  believes  that  its  internal  controls  are
adequate to meet current regulatory requirements.







Certain  statements in this news release regarding  Euro  Tech's
expectations,  estimates,  present  view  of  circumstances   or
events,  and  statements  containing words  such  as  estimates,
anticipates,  intends, or expects, or words of  similar  import,
constitute forward looking statements within the meaning of  the
Private   Securities  Litigation  Reform  Act  of   1995.   Such
statements  indicate  uncertainty and  Euro  Tech  can  give  no
assurance with regard to actual outcomes. Specific risk  factors
may  include, without limitation, having Euro Tech's offices and
operations  situated in Hong Kong and China, doing  business  in
China,  competing with Chinese manufactured products,  competing
with  Euro Tech's own suppliers, dependence on vendors, and lack
of  long  term written agreements with suppliers and  customers,
development  of  new  products, entering new  markets,  possible
downturns in business conditions, increased competition, loss of
significant  customers,  availability  of  qualified  personnel,
negotiating definitive agreements, new marketing efforts and the
timely   development  of  resources.  See  the   "Risk   Factor"
discussions  in  Euro  Tech's filings with  the  Securities  and
Exchange  Commission, including its Annual Report on  Form  20-F
for its fiscal year ended December 31, 2004.

CONTACT:  Euro Tech Holdings Company Limited, Hong Kong
          T.C. Leung, Chairman and CEO, or   Jerry Wong, CFO
          Tel:  011-852-2814-0311
          Fax: 011-852-2873-4887
          Website: http://www.euro-tech.com

          PACT's  Website: http://www.pactchina.com