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China Energy Recovery Confirms a $1.8 million New Waste Heat Energy Recovery System Contract from Fertilizer Leader, Dongsheng Chemical

Posted on: Wednesday, 22 April 2009, 06:00 CDT

SHANGHAI, April 22 /PRNewswire-Asia/ -- China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced it has secured a new contract to design and manufacture a set of waste heat energy recovery system for Dongsheng Chemical, a large, privately-held chemical fertilizer company in Hubei Province in central China. The value of the contract totals RMB12 million (approximately US$1.76 million based on the exchange rate as of the date of this press release). This makes it the second contract concluded within a one-month period for China Energy Recovery--the other being with the Yangfeng Group of RMB 9.73 million (approximately US$1.42 million) in contract value announced on April 7, 2009.

"Winning two large contracts within a one-month period has definitely demonstrated the positive impacts that China's recent stimulus package and the focus on clean energy solutions are having on our business," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "Winning these two large customer contracts through open bidding demonstrates the recognition of our market leadership position in the waste heat energy recovery field. Though there are still challenges as the result of economic downturns in China and globally, viewing these new contracts on an annual basis, it is anticipated the year of 2009 will continue to grow and we expect that growth will be carried well into 2010 and beyond."

The above-mentioned waste heat energy recovery system is designed to generate 120 tons of steam per hour. This is equivalent to nearly 24MW of heat energy generation capacity and will enable Dongsheng Chemical to reduce the cost of purchasing steam from outside sources needed to support the facility operations. This project is estimated to achieve an annual saving of roughly 52,000 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and consequently the reduction of roughly 138,000 tons of carbon dioxide emission from the burning of that coal each year.

The contract numbers presented above are the total contract values, which include a 17% value added tax and the retainage amounts for product warranty purpose, which are 5% or 10% of the total contract values and will be recognized as deferred revenues. The numbers presented represent values based on current exchange rates. Changes in the currency exchange rates would result in a commensurate change in contract value.

What is Waste Heat Energy Recovery?

Industrial facilities 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 heat energy or electricity, dramatically lowering energy costs. Energy recovery systems are also capable of capturing harmful pollutants that would otherwise be released into the environment. It is estimated that if energy currently wasted by all the U.S. industrial facilities could be recovered, it could produce power equivalent to 20% of U.S. electricity generation capacity 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 designing, manufacturing and installing waste heat energy recovery systems which provide facilities with greater energy efficiency. The company's primary focus is 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, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers, including: chemical, paper manufacturing, refining (including methanol refining), etc. 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: http://www.chinaenergyrecovery.com/s/Home.asp . 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, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. 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 Securities and Exchange Commission, including CER's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2009.

SOURCE China Energy Recovery, Inc.

Source: PR Newswire

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