A-Power Energy Generation Systems Ltd. Forms JVs with Jiangsu Miracle Logistics System Engineering Co., Ltd. to Manufacture and Sell Key Wind Turbine Components

SHENYANG, China, Aug. 18 /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 that it has
entered into definitive agreements to form two joint ventures (“JVs”) with
Jiangsu Miracle Logistics System Engineering Co. Ltd. (Shenzhen Stock Exchange:
002009; “Jiangsu Miracle”). The JVs will mainly engage in manufacturing and
sales of key wind turbine components in China.

Pursuant to the agreements, the first JV, called Shenyang Tianxiang Wind
Equipments Manufacturing Co., Ltd. (“Shenyang Tianxiang”), will manufacture
rotor blades, hubs, nacelle covers, and other key components for wind turbines.
A-Power will invest $1.5 million (RMB 10.2 million) in cash for 51% of the JV,
and the rest, $1.4 million (RMB 9.8 million), or 49%, will be provided by
Jiangsu Miracle. Shenyang Tianxiang’s plant will be located in Shenyang City
and all necessary molds will be supplied by Jiangsu Miracle.

The second JV, Shenyang Tianrui Wind Equipments Sales Company Co., Ltd.
(“Shenyang Tianrui”), will focus on marketing and sales of the wind components
made by Shenyang Tianxiang. A-Power will invest $359,000 (RMB 2.45 million) in
cash for 49% of the JV, and the rest, $373,000 (RMB 2.55 million), or 51%,
will be provided by Jiangsu Miracle.

Most of the components made by Shenyang Tianxiang will be purchased by
A-Power and the remainder will be sold through Shenyang Tianrui to various
other customers.

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

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
FUHRL?NDER 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: We are dependent on our licensing
partners, and events involving these licensing partners or any future
licensing partners could prevent us from developing our wind turbine business;
our technicians may have difficulty adapting our licensed technology; systems
that we develop and install may contain design or manufacturing defects, which
could result in reduced demand for our services and customer claims and
uninsured liabilities; we expect to rely increasingly on our proprietary
products and systems and on technology developed by our licensors, and if we
or our licensors become involved in an intellectual property dispute, we may
be forced to spend a significant amount of time and financial resources to
resolve such intellectual property dispute, diverting time and resources away
from our business and operations; 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 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, 2008. 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.

    For more information, please contact:

     Mr. John S. Lin
     Chief Operating Officer
     A-Power Energy Generation Systems
     Email: john@apowerenergy.com

     Mr. Valentine Ding / Mr. Dixon Chen
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: valentine.ding@us.grayling.com
            dixon.chen@us.grayling.com

SOURCE A-Power Energy Generation Systems Ltd.