China Power Equipment and Advanced Technology & Materials Co., Discussed Possible Sourcing of Amorphous Alloys Needed for High-Efficiency Electric Transformers

XI’AN, China, Oct. 5 /PRNewswire-Asia-FirstCall/ — China Power Equipment,
Inc. (“China Power Equipment,” OTC: CPQQ), the manufacturer of a new
generation of energy saving electric transformers and transformer cores in the
People’s Republic of China, today announced that its Chairman, Mr. Yongxing
Song, met on September 22, 2009 with the management of Advanced Technology &
Materials Co., Ltd. (“AT&M”, SZSE:000969), a world-leading high technology
enterprise engaged in the development, manufacture, and sale of high tech
materials and related products.

The two companies discussed a possible sourcing arrangement for AT&M’s
amorphous alloy that could be used in making China Power Equipment’s high-
efficiency electric transformer cores and transformers.

Mr. Yongxing Song, Chairman of China Power Equipment, said, “We are very
pleased to have been colleagues with AT&M from time to time during the past
seven years, dating back from the testing of the first generation of amorphous
core transformers. Based on that relationship, I know that AT&M is a
remarkable resource, with a history of innovative technology leadership.

“The need to save energy in China, especially by using amorphous alloys to
increase the efficiency of electric transformers, will provide the solid
foundation for a new strategic sourcing collaboration with AT&M. We believe
such a sourcing agreement would further strengthen our relationship, would be
mutually beneficial, would accelerate the production of our amorphous alloy
transformer cores, and would increase our customers’ production of high-
efficiency electric transformers that are so much in demand in China.

“This possible sourcing collaboration with AT&M would become a cornerstone
for our rapid expansion. It would diversify our amorphous alloy sourcing and
make this important material more available and our raw material inventory
more predictable. Importantly, the relationship would help to maximize value
for our shareholders and improve air quality in China. We have agreed to
continue our discussions with AT&M. That possible sourcing collaboration would
not reduce the volume we buy from our current amorphous alloy supplier.”

About China Power Equipment

China Power Equipment, Inc., through its wholly owned subsidiary, Xi’an
Amorphous Zhongxi Transformer Co., Ltd., has developed a proprietary patented
technology to produce a new generation of energy saving transformers and
transformer cores. The company currently manufactures 55 different models of
cores and transformers in four product series that are sold throughout China.
The company was formed in 2006 as a U.S. corporation and then formed a Chinese
subsidiary that became licensed by the Chinese government as a privately held
and wholly owned foreign enterprise. For more information about China Power
Equipment, please visit the company’s website at www.chinapower-equipment.com.

About Advanced Technology & Materials

Advanced Technology & Materials Co., Ltd., is principally engaged in the
development, manufacture, and sale of new materials and related products. The
Company is also involved in the trading business and the provision of
engineering technologies. The Company offers its products under four
categories: extra-hard and refractory materials, functional materials, fine
metal products, and biomedical materials. For more information about Advanced
Technology & Materials Co., Ltd., please visit the company’s website at
www.atmcn.com/en/.

Safe harbor statements

Certain statements in this release concerning China Power Equipment’s
future growth prospects are forward-looking statements, which involve a number
of risks and uncertainties that could cause actual results to differ
materially from those in such forward-looking statements. The risks and
uncertainties relating to these statements include, but are not limited to,
risks and uncertainties regarding the success of our investments, risks and
uncertainties regarding fluctuations in earnings, our ability to sustain our
previous levels of profitability including on account of our ability to manage
growth, intense competition, wage increases in China, our ability to attract
and retain highly skilled professionals, time and cost overruns on fixed-
price, fixed-time frame contracts, client concentration, our ability to
successfully complete and integrate potential acquisitions, withdrawal of
governmental fiscal incentives, political instability and regional conflicts
and legal restrictions on raising capital or acquiring companies outside
China. Additional risks that could affect our future operating results are
more fully described in China Power Equipment’s filings with the United States
Securities and Exchange Commission, which available at www.sec.gov. We may,
from time to time, make additional written and oral forward-looking
statements, including statements contained in our filings with the Securities
and Exchange Commission and our reports to shareholders. We do not undertake
to update any forward-looking statements that may be made from time to time by
or on our behalf.

Similar information about the forward-looking statements and risks related
to Advanced Technologies & Materials can be found in its filings with the
Shenzhen Stock Exchange and the China Securities Regulatory Commission.

    For more information, please contact:
    China Power Equipment, Inc.
    Mr. Michael Segal
    Telephone +1-646-623-6999 (US)
    xa-fj@xa-fj.com

    Christensen
    Ms. Kathy Li (English and Chinese)
    Telephone +1 212 618 1978 in the US
    kli@christensenir.com

    Mr. Yuanyuan Chen (English and Chinese)
    Telephone +86 10 5971 2001 in Beijing
    Mobile +86 139 2337 7882 in Beijing
    ychen@christensenir.com

    Mr. Tom Myers (English)
    Mobile +86 139 1141 3520 in Beijing
    tmyers@christensenir.com

SOURCE China Power Equipment, Inc.