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

Posted on: Monday, 5 October 2009, 06:00 CDT

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.

SOURCE China Power Equipment, Inc.

Source: PR Newswire

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