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A-Power Energy Generation Systems Ltd. Signs Letter of Intent to Partner with Jiangsu Miracle Logistics System Engineering Co., Ltd. for Wind Turbine Components

Posted on: Monday, 27 April 2009, 06:52 CDT

SHENYANG, China, April 27 /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 a Letter of Intent ("LOI") with Jiangsu Miracle Logistics System Engineering Co., Ltd. ("Jiangsu Miracle") to source wind turbine components including hubs and main frames from Jiangsu Miracle's subsidiaries.

Jiangsu Miracle is listed on the Shenzhen Stock Exchange (ticker: 002009) with a market cap of around $300 million, according to Google Finance. It started manufacturing wind turbine components in 2005.

Pursuant to the LOI, A-Power intends to use Jiangsu Miracle as a preferred supplier to source wind turbine components in instances when Jiangsu Miracle's price and quality do not differ significantly from A-Power's other suppliers. In addition, A-Power and Jiangsu Miracle intend to form a Joint Venture in Shenyang to manufacture components for both the 2.7mw and the 750kw wind turbines. The initial prototypes of the components for the 750kw wind turbines are expected to be finished by end of August 2009.

"We are thrilled to sign up Jiangsu Miracle as an important wind turbine supplier," said Mr. Jinxiang Lu, A-Power's Chairman and CEO. "As a leading developer and manufacturer of components for wind turbines in China, Jiangsu Miracle brings value to A-Power's efforts to economically build China's largest wind turbines. We look forward to completing our first prototype this year."

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: our limited operating history and recent entrance into new markets and the wind turbine business 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; we may experience construction and development delays on our projects which could adversely affect our financial condition and operating results; 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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