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Asia Electrical Power Receives Initial Orders Exceeding $7 Million From Chinese Government in First Quarter of 2008

Posted on: Wednesday, 2 April 2008, 09:00 CDT

Asia Electrical Power International Group, Inc. (OTCBB: AEPW) ("Asia Electrical"), a leading manufacturer of secondary electrical power systems in China, today announced that it has received over $7 million in orders from the Chinese government in the first quarter of 2008. The orders were for the Company's secondary electrical power systems components and complete-set equipment to be used to restore and upgrade the damaged electrical grids in numerous provinces throughout China.

On January 29, 2008, just before the start of the Chinese New Year, China was struck with the worst winter storm in over half a century. Millions of people travelling for the Chinese New Year holiday were left stranded due to major disruption and breakdown of the electric grid infrastructure in most cities and provinces throughout China, grounding trains to a halt and engulfing homes, businesses and shelters in darkness. This breakdown of the electric grid caused the Chinese Premier to issue an almost unprecedented apology to the people and promise to make upgrading the electrical grid a top priority for the government. The estimated cost for restoring the electric grid throughout China was placed at about $5.5 billion dollars with an additional $36 billion required to upgrade and reform the grid.

"It is unfortunate that China and the Chinese people had to endure such a devastating storm during the most important holiday in the country, and even more unfortunate that they endured it without electricity and the transportation means dependant on it," commented Mr. Yulong Guo, Asia Electrical Power's Chairman and Chief Executive Officer. "However, this tragedy served as the catalyst for the government to place top priority to upgrading the aged electric grid system throughout the country and allocate the needed funds and resources to complete the task expeditiously."

Asia Electrical is one of only a select number of electrical component manufacturers in China to have been granted the designated manufacturer status and received certification as a "Key Manufacturer" by the National Power Authority of China. This initial order of $7 million is indicative of the role Asia Electrical expects to play in the initial phase of the restoration and rebuilding of the electrical power grid in China. The orders were received in the second half of the first quarter and are expected to be completed and delivered this year.

"We are very excited to take part in this massive rebuilding project throughout China and, with our recent move to our new manufacturing facilities, we are very well positioned to take full advantage of and easily meet this drastic increase in demand. We have started the year with a tremendous boost in sales, both from domestic and international markets, and are looking forward to sustaining and increasing this growth rate in the coming quarters and years," concluded Mr. Guo.

If you would like to be added to Asia Electrical's investor email list, please contact Zack Noory with Nexus Investor Relations at znoory@nexusir-online.com.

About Asia Electrical Power

Asia Electrical Power International Group, Inc., through its wholly owned subsidiary Asia Electrical Power Co. Ltd., is a leading manufacturer of secondary electrical power systems in China. The Company is a high technology enterprise dedicated to manufacturing the finest components in secondary electrical power systems, such as cabinet-type electric substations, outdoor switching-mechanisms, cable feeder pillars and switching elements, and to becoming a leading global player in the sales of high, medium and low voltage, complete-set equipment. The Company has a proven track record of robust growth and a promising outlook for substantial earnings growth through expanded market penetration as well as investment in the exploding electrical power industry sector throughout China, elsewhere in Asia and beyond to the Americas. For additional information, please visit www.asiaelectricalpower.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, uncertainties in product demand, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

 FOR FURTHER INFORMATION:  AT NEXUS INVESTOR RELATIONS: Zack Noory Managing Partner 310-606-2018 znoory@nexusir-online.com

SOURCE: Asia Electrical Power International Group Inc.

Source: MARKET WIRE

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