September 26, 2008

One of China’s Largest Sulfuric Acid Manufacturing Plants Celebrates Three Years Combined Success of Advanced Waste Heat Energy Recovery System With Power Generation Capacity of 54 MW of Electricity

China Energy Recovery, Inc. (OTCBB:CGYV) ("China Energy Recovery" or "CER"), a leader in the waste-heat energy recovery sector of the alternative energy industry, today recognized that an important client of CER, Two Lions (Zhangjiagang) Fine Chemical Co., Ltd. ("Two Lions"), located in Jiangsu Yangtze River International Chemical Industry Park, remains a model of waste heat recovery technology application with installed power generation capacity of 54 MW of electricity utilizing recovered heat energy, the largest of its kind in the sulfuric acid industry in China.

When construction was completed in 2005, the plant was considered the most technologically advanced sulfuric acid production facility in the world, and its one million ton per year output capacity continues to make it China's largest single sulfuric acid manufacturing facility. Two Lions has been able to attain a payback period of less than two years for the installed energy recovery system from energy cost savings resulting from the system. Additionally, Two Lions was granted Clean Development Mechanism (CDM) certification and was approved to sell carbon credits for nearly 250,000 tons of reduced CO2 emissions annually, the very first CDM certification in China's sulfuric acid industry. The current value of the carbon credits is estimated to be more than US$2.5 million per year.

"We are very proud of the success of Two Lions and appreciate that they returned to us for additional projects. With customers like Two Lions to recognize the benefits of waste heat recovery technology, we are more committed than ever to making sure our systems continue to improve in order to maximize heat energy recovery capability for our customers," stated Chairman of the Board and CEO of China Energy Recovery, Mr. Qinghuan Wu. "As a comparison, to generate the same amount of electricity as Two Lion's installation in a coal fired power plant would require burning approximately 100,000 tons of coal per year. In contrast, Two Lion's energy recovery system generates the same amount of electricity without consuming any additional fossil fuel. This represents what our entire company's mission is about, and we look forward to continuing to maximize our opportunity for growth with companies like Two Lions and others throughout our target markets."

What is Waste Heat Energy Recovery?

Industrial facilities and power plants release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering vast amounts of that wasted energy and converting it into usable electricity, dramatically lowering energy costs. Energy recovery systems are also capable of capturing the majority of carbon emissions and other harmful pollutants that would otherwise be released into the environment. It is estimated that energy recovery systems installed in U.S. industrial facilities could produce up to 20% of U.S. electricity needs without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.

About China Energy Recovery, Inc.

CER is an international leader in energy recovery systems, with a primary focus on the Chinese market. CER's technology captures industrial waste energy to produce low-cost electrical power, enabling industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate sellable emissions credits. CER has deployed its systems throughout China and in such international markets as Egypt, Turkey, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers, including: chemical, petro-chemicals, refining (including Ethanol refining), coke processing, and the manufacture of paper, cement and steel. CER continues to invest in R&D and plans to build China's first state-of-the-art energy recovery system research and fabrication facility to allow it to meet the increased demand for its products and services. For more information on CER, please visit: Information on CER's website does not comprise a part of this press release.

Forward-Looking Statement Disclaimer

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, and CER's customers' ability to successfully pay back the costs associated with installed energy recovery systems, obtain CDM certification and be approved to sell and actually sell carbon credits. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the SEC, including CER's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 21, 2008.