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A-Power Energy Provides Updates on 2008 Fourth Quarter Guidance

Posted on: Tuesday, 30 December 2008, 09:02 CST

SHENYANG, China, Dec. 30 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) ("A-Power" or the "Company"), announced today updates on its fourth quarter guidance for the period ending December 31, 2008.

For the 2008 fourth quarter, the Company now expects revenue to be approximately $76 million and net income to be approximately $5 million. Both revenue and net income guidance are now lower than previous guidance of $158 million and $15.5 million, respectively.

Mr. Jinxiang Lu, A-Power's Chairman and CEO, commented, "Due to the unusual current macro economic conditions, a few of our key potential contracts, which we expected to close in the fourth quarter, were postponed. As our projects are highly capital intensive, we always require a sizeable down payment as a key component of our standard contract. Under today's environment, we believe that it is even more important to exercise prudence on customers' payment terms and to continue to focus on our cash flow management. Entering into 2009, we remain confident with a positive outlook for China's wind energy market as both government and enterprises have a strong commitment for renewable energy development, and we maintain a leading position in the marketplace, where the barrier to enter is high. As a result, we continue to expect profitable growth in 2009."

As of September 30, 2008, the Company's cash and cash equivalents totaled $59.7 million compared with $35.8 million as of December 31, 2007. Bank loans were zero compared with $0.96 million as of December 31, 2007. Working capital as of September 30, 2008 was $95.8 million compared with $38.0 million as of December 31, 2007.

The Company continues to conduct search for qualified CFO. The Company also believes that current economic condition creates more opportunities and options for A-Power to locate the most suitable candidate.

About A-Power

A-Power Energy Generation Systems, Ltd., through its PRC operating subsidiaries, is the largest provider of distributed power generation systems in China and entered into China's wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou.

This press release contains forward-looking statements. These statements are made within the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and other similar statements. Statements that are not historical facts, including statements relating to anticipated future earnings, margins, and other operating results, future growth, construction plans and anticipated capacities, production schedules and entry into expanded markets are forward-looking statements. Such forward- looking statements, based upon the current beliefs and expectations of our management, are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements, including but not limited to, the risk that: a decrease in the rate of growth of China's industry and economy may lead to a decrease in our revenues because industrial companies in China are our principal source of revenues; decreases in the price of oil and gas could reduce demand for our distributed power energy generation and wind turbine systems; we may experience construction and development delays in our projects which could adversely affect our financial condition and operation results; our revenue depends on gaining new customers and we do not have long-term purchase commitments from our customers; a significant reduction in government subsidies and economic incentives could have a material adverse effect on the results of our operations; inclement weather conditions could delay our construction schedules and affect our operating results in particular quarters and/or fiscal years; fluctuations in general customer demand could negatively impact our financial results, as well as other relevant risks detailed in our filings with the Securities and Exchange Commission, including those set forth in our annual report filed on Form 20-F for the fiscal year ended December 31, 2007. The information set forth herein should be read in light of such risks. We assume no obligation to update the information contained in this press release, except as required under applicable law.

SOURCE A-Power Energy Generation Systems, Ltd.

Source: PR Newswire

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