CESV China Energy Savings Technology (MM)

HONG KONG, Oct. 19 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV), a leading provider of energy saving products in China, announced today it has signed a Letter of Intent for a PEMFC Project with Beijing Century Fuyuan Fuel Cell Ltd. ("Beijing Fuyuan"). Beijing LN owns 10 patents governing Proton Exchange Membrane Fuel Cell technology (PEMFC). Aside from PEMFC, Beijing Fuyuan also owns the intellectual property surrounding 21 additional related technologies, including the ability to manufacture fuel cells and crafts and special equipment. To date, Beijing Fuyuan has developed over 10 types of hydrogen fuel generators with its cutting-edge technology. These generators have been tested and proved to be applicable to three kinds of hydrogen-fuel motors vehicles. China has made the first step towards using environmental protection fuel for transportation. These products are currently being marketed in China, Japan, Europe and the US. As a result of the cooperation between Beijing Fuyuan and China Energy Savings, marketing efforts will be increased in North America. The Company plans to sign the definitive agreement with Beijing Fuyuan within three months to form a cooperative company. China Energy Savings Technology shall invest capital whilst Beijing Fuyuan shall provide their patented technology. The two parties will cooperate to manufacture hydrogen fuel cell generators to meet the increasing demand for low cost and high effect fuel generators. Beijing Fuyuan has invested, installed and tested the first PEMFC production line capable of annual production of 50,000 sq. meters. The fuel cell technology consists of 4 types of cell piles ranging from 50W to 50Kw. The most commonly used hydrogen cells are 100W, 150W, 200W, 500W, 1KW, 3KW, 5KW, 10KW, 20KW, 30KW, 5KW, all widely used throughout China for both large- scale and small power generation. The technology is currently begin used by the Beijing government in various research projects such as the "Beijing Scientific and Technology Plan 863," a program to put fuel cells into motor vehicles through which the fuel cell can generate up to 50KW of fuel. Currently, there are three brand new models of fuel cell limousines and sedans that have been developed. The models have been well received by consumers in trials. While well-established in China, Beijing Fuyuan is still new to the international markets. Nonetheless, it has started building business relationships by forming strategic alliances with companies and customers from around the globe. Beijing Fuyuan has established a stable market in Japan and has begun to penetrate the US, Australia and Europe, etc. The Company plans to apply the technology to the 2008 Olympic Games in Beijing. The fuel cell will be used for power generation and standby generation for portion of arenas where The Games will be held and for empowering fuel cell cars and safety cars. Sun Li, Chairman and CEO of China Energy Savings Technology, "The emergence of fuel cell marks the new direction of two sectors, namely, energy and transportation. According to tests, a PEMFC electric car can help protect the environment by replacing diesel in public transportation to help reduce consumption of oil and further reduce the green house effect created by the emission of coal gas from motor vehicles. It has been proved that each PEMFC car can reduce the consumption of as much as 11 tons of coal gas per year. Examples of reduction of CFC emission can be found in three of the models of PEMFC and the reduction in Kg, namely NOX: 80Kg, CO: 75Kg, RTHC: 62Kg. Car makers are competing to develop fuel cell technology for their products. It is expected that these types of new cars will become very popular in the next 2 to 4 years. Experts expect the global market for PEMFC to reach $3 billion and even exceed $10 billion by the year 2007We are doing our very best to move one step ahead of our peers into this new market to increase profits, contribute to environmental protection as well as to help solve the energy crisis." About China Energy Savings Technology China Energy Savings Technology, Inc., through its ownership interest in Starway Management Limited 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. 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. Contact: Ed Lewis CEOcast, Inc. for China Energy Savings Technology (212) 732-4300 or Trevor Blank First Global Media Email: Telephone: (480) 902-3110 DATASOURCE: China Energy Savings Technology, Inc. CONTACT: Ed Lewis, CEOcast, Inc., +1-212-732-4300, , for China Energy Savings Technology; Trevor Blank, First Global Media, , +1-480-902-3110, for China Energy Savings Technology, Inc.

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