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A-Power Energy Generation Systems Ltd. Wins Two Contracts Totaling $75.3 Million for Anhui Wenergy Co., Ltd.'s Biomass-Based Micro-Grid Electricity Generation Projects

Posted on: Tuesday, 21 April 2009, 10:08 CDT

SHENYANG, China, April 21 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) ("A-Power" or "the Company"), a leading provider of distributed power generation ("DG") systems in China and a fast-growing manufacturer of wind turbines, today announced it has signed contracts with the subsidiaries of Anhui Wenergy Co., Ltd. ("Wenergy") to build two micro-grid electricity-generation systems in Anhui Province based on biomass as the primary fuel. The total value of the two contracts is $75.3 million (RMB 516 million).

Pursuant to the contracts, A-Power will design, assemble, install, test and deliver two 30MW electricity-generation systems using biomass as fuel at Wenergy's DG plants in Shucheng County and Hanshan County in Anhui Province. The two projects are expected to be completed and in operation by August 2010.

"We are extremely excited to become the sole provider for Wenergy's two high-profile alternative energy projects in one of China's important industrial provinces," said Mr. Jinxiang Lu, A-Power's Chairman and CEO. "Wenergy's ground-breaking biomass power plants are much bigger in scale and value than other biomass projects we have seen in China. As China is taking on more and more clean energy sources, our DG system solutions have received considerable government support. This is a vote of confidence in A-Power's engineering prowess and the transferability of our DG services to biomass-based projects. With these two projects, A-Power has broadened its DG coverage to another important industrial company in China."

About Anhui Wenergy Co., Ltd.

Anhui Wenergy Co., Ltd. ("Wenergy") is listed on the Shenzhen Stock Exchange (ticker: 000543). According to Google Finance, it has a market cap of $6 billion and is primarily engaged in investment and operation of power generation, energy saving and other relevant projects. Wenergy's major product is electric power. During the year ended December 31, 2008, it generated approximately 8 billion kilowatt-hours of on-grid electricity. Wenergy distributes electric power in Anhui Province and Eastern China.

In January 2009, Wenergy announced that three of its subsidiaries gained $20 million (RMB 136 million) worth of subsidies from the Chinese government for the voluntary shutdown of five coal-fired electrical generators.

For more information on Wenergy, please log on http://www.wenergy.cn/ .

About A-Power

A-Power Energy Generation Systems Ltd. ("A-Power"), through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25MW to 400MW. In 2008, A-Power entered the wind energy market and has built China's largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with technologies licensed from German FUHRLANDER AG and Denmark-based Norwin, and a total annual production capacity of 1,125MW. In March 2009, A-Power entered into an agreement to establish a Joint Venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang. A-Power also has strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to develop and commercialize other renewable energy technologies. For more information, please visit http://www.apowerenergy.com .

Safe Harbor Statement

This press release may contain forward-looking statements. Any such statement is 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: inclement weather conditions could adversely affect our operating results in particular quarters and/or fiscal years; we may experience construction and development delays on our projects which could adversely affect our financial condition and operating results; our limited operating history and recent entrance into new markets may make it difficult for you to evaluate our business and future prospects; the expected benefits of supply and partnership agreements may not materialize to the extent expected or at all; we expect to rely increasingly on our proprietary products and systems and on technology developed by our licensors and partners, and if we or our licensors or partners become involved in an intellectual property dispute, we may be forced to spend considerable resources resolving such dispute; 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, 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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