CESV China Energy Savings Technology (MM)

China Energy Savings Announces 2-For-1 Forward Stock Split Effective on or About July 21, 2005 HONG KONG, July 6 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV) announces today that it filed a Preliminary Information Statement through SEC Schedule 14C on June 21 informing shareholders that the Board of Directors approved a 2-for-1 forward stock split by recognizing a vote of over 50% shareholders in favor of the action. On July 1, the Company filed a Definitive Information Statement through SEC Schedule 14C ('DEF14C') informing shareholders that the Company would start mailing out the DEF14C to the shareholders and the forward stock split is expected to become effective on or about July 21, 2005 The immediate effect of the forward split will be to increase the number of presently issued and outstanding shares of Common Stock from approximately 24,699,753 shares to approximately 49,399,506 shares. Each shareholder of record will receive one additional share of common stock for each share of common stock currently held. No action is required on the part of the holders of the common stock such as surrendering their current certificates, as new certificates will not be issued. Additionally, the Board of Directors approved a move to increase the number of authorized shares from 50,000,000 to 200,000,000. This increase will become effective on the same date as the forward stock split. The Board of Directors believes it is in the best interests of the Company and its shareholders for the Company to have a reasonable reserve of authorized but un-issued shares of common stock in order to allow for future stock issuances in future actions such as stock splits, stock dividends, acquisitions of property and securities of other companies. About China Energy Savings Technology China Energy Savings Technology, Inc., through its subsidiary, Starway Management Limited which in turn holds 100% interest of its energy savings subsidiary in China, engages in the development, manufacture, sale, and distribution of energy-saving products for use in commercial and industrial settings in the People's Republic of China. According to test reports by various PRC authorities including the National Center of Supervision & Inspection on Electric Light Source Quality (Shanghai) issued in September 2002, Shenzhen Academy of Metrology & Quality Inspection issued in December 2002 and approved by the State Quality Supervision Inspection Department, the energy saving products of Starway's subsidiaries may provide energy saving rates ranging from approximately 25% to 45%. The energy saving projects conducted by Starway's subsidiaries mostly relate to public or street lighting systems, government administration units, shopping malls, supermarkets, restaurants, factories and oil fields, etc. There are small and large-scaled projects: the small-scaled projects relate to restaurants, shops, small arcades, offices and households through the sale of equipment, and the large-scaled projects relate to large shopping malls, supermarkets, factories and public bodies through the provision and installation of equipment over a term usually extended for years. With the world's energy crisis as the backdrop, and global oil prices breaking record highs, China's own crisis is growing not only in size, but in concern as well. Coal prices and energy consumption in China are also at all-time highs. For these reasons, the company's products are widely used and highly recommended in China because of the huge energy market and the excellent prospect of energy savings. Safe Harbor Statement As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its business model and strategic plans; and the risks described from time to time in the Company's SEC filings. For more information, please contact: John Roskelley, President, First Global Media Tel: +1-480-902-3110 Web: http://www.cesv-inc.com/ Email: DATASOURCE: China Energy Savings Technology, Inc. CONTACT: John Roskelley, President of First Global Media, +1-480-902-3110, for CESV

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