China Power Equipment Offers Two Amorphous Alloy Sources

July 27, 2010

XI’AN, China, July 27 /PRNewswire-Asia-FirstCall/ — China Power Equipment,
Inc. (“China Power Equipment” or “China Power” or the “Company”)
(OTC Bulletin Board: CPQQ), the manufacturer of a new generation of energy
saving electric transformers and transformer cores in the People’s Republic of
, today reported that it is now taking orders for amorphous alloy cores
that can be manufactured using an alloy from a domestic Chinese supplier.

Mr. Yongxing (Henry) Song, Chairman and Chief Executive Officer of China
, said, “We are pleased to add another supplier for amorphous alloy, the
primary raw material used in manufacturing our transformer cores.

“As the Chinese-made amorphous alloy enters the market, it may cause the
market price of the alloy to decline, which could narrow the price difference
between amorphous alloy transformers and traditional steel transformers. In
addition, a lower price could accelerate the adoption of amorphous alloy
transformers, especially since the Chinese government is encouraging greater
energy efficiency and lower emissions. The result could be further increases
in the demand for the more energy-efficient amorphous alloy core transformers.

“We believe that having two amorphous alloy suppliers will broaden our
product offering and will give our customers a good choice of alternatives
that will best fit their needs for transformer cores and transformers.”

Several of China Power’s customers have completed their testing of its
amorphous alloy cores and transformers made with amorphous alloy from Beijing
Advanced Technology & Science Materials Co., Ltd. (“AT&M”). They found that
those trial products performed with very good characteristics and for some
applications were also more cost-effective. As a result, China Power Equipment
will offer several transformer core products using AT&M’s alloy. China Power will continue, of course, to make amorphous alloy cores and transformers using
the amorphous alloy that is sourced from Hitachi Metals Co., Ltd. China Power expects that Hitachi will to continue to be a major supplier to China Power.

About China Power Equipment, Inc.

China Power Equipment, Inc., is a U.S. corporation, which through its
wholly-owned subsidiary, An Sen (Xi’an) Power Science & Technology Co., Ltd.,
and its affiliated operating company, Xi’an Amorphous Zhongxi Co., Ltd.,
designs, manufactures, and distributes amorphous alloy transformer cores and
amorphous alloy core electricity transformers in the People’s Republic of
. The company currently manufactures 59 different products, primarily
amorphous alloy cores and amorphous alloy core transformers.

China is aggressively embracing energy efficiency. China Power Equipment’s
products are a new generation of energy-saving electricity transformers that
typically step-down voltage from 10,000 volts (used in local electric
distribution) to 220 volts (the household voltage in China). China Power
Equipment’s cores or transformers typically use 60 to 70 percent less
electricity to operate than do older steel-core transformers.

Safe harbor statement

Certain statements in this release concerning our 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 results are described in our
filings with United States Securities and Exchange Commission. These filings
are available at www.sec.gov and at our website at
http://www.chinapower-equipment.com .

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 any obligation to update any forward-looking statement that may be
made from time to time by or on our behalf except as required by law.

For more information about China Power Equipment, please visit our website
at http://www.chinapower-equipment.com .

    For additional information, please contact:

    China Power Equipment, Inc.
     Tel:   +1-646-623-6999 in the USA
     Email: xa-fj@xa-fj.com


     Mr. Yuanyuan Chen (English and Chinese)
     Mobile: +86-139-2337-7882 in Beijing
     Email:  ychen@christensenir.com

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

     Ms. Kathy Li (English and Chinese)
     Tel:   +1-212-618-1978 in the USA
     Email: kli@christensenir.com

SOURCE China Power Equipment, Inc.

Source: newswire

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