A Return Customer, Hubei Sanning Chemical Co. Orders CER Systems for New and Existing Sulfuric Acid Plants

SHANGHAI, Nov. 5, 2010 /PRNewswire-Asia/ --China Energy Recovery Inc. (Pink Sheets: CGYV) ("CER"), an international leader in the design, fabrication, installation and servicing of waste heat recovery systems, announced today that it signed a contract with Hubei Sanning Chemical Co. Ltd. to manufacture and install two, large-scale waste heat recovery systems for sulfuric acid production located at the company's production complex in Zhijiang City, Hubei Province, China.  The contract for the two systems, which was executed on Oct. 16, represents an approximate gross total of $22.7 million (US) to CER.

Of the two heat recovery systems ordered by Hubei Sanning, one is rated to produce 22 tons-per-hour of low-pressure saturated steam and will be retrofitted to an existing 300 thousand ton-per-year sulfuric acid plant. This system is scheduled to be completed in December 2011. The second system for Hubei Sanning will be incorporated into a new, 800 thousand ton-per-year sulfuric acid plant under construction at the site. This system is rated to produce 125 tons-per-hour of high-pressure superheated steam and is scheduled for completion in January of 2012.  

Hubei Sanning previously contracted with CER to install a heat recovery system for another of its sulfuric acid plants in Sept. 2009.

"We are pleased to have been selected again by Hubei Sanning to manufacture and install heat recovery systems for new and existing sulfuric acid production in Zhijiang City," Qinghuan Wu, Chairman and CEO of China Energy Recovery, said. "The scale of these projects underline the confidence Hubei Sanning has in CER's engineering capability and the performance of its waste heat recovery systems."

Hubei Sanning is the fertilizer and coal-chemical subsidiary of Jincheng Coal Group, one of China's leading industrial chemical and fertilizer producers.  Sulfuric acid is a basic building-block chemical used in fertilizer manufacturing.

What is Waste Heat Energy Recovery?

Industrial facilities release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering as much as two-thirds of that wasted energy and converting it into usable heat energy or electricity, dramatically lowering energy costs. Energy recovery systems are also capable of lowering heat pollution and capturing harmful pollutants that would otherwise be released into the environment. It is estimated that if energy currently wasted by all the U.S. industrial facilities could be recovered, it could produce power equivalent to 20% of U.S. electricity generation capacity without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.

About China Energy Recovery, Inc.

CER is an international engineering and manufacturing company that specializes in the design, construction and installation of waste heat energy recovery systems that captures and converts industrial waste energy produced by heavy industrial processes such as petroleum and chemicals refining, paper manufacturing and refining into low-cost electrical power, which enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint and generate salable emissions credits.  The company's primary focus is the Chinese market; however, CER's systems are operating in heavy industrial plants located in Egypt, Korea, Vietnam and Malaysia. CER is building China's first state-of-the-art, energy recovery system research and fabrication facility, which will allow CER to meet increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp. Information on CER's website does not comprise a part of this press release.

Forward-Looking Statement Disclaimer

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the Securities and Exchange Commission.

SOURCE China Energy Recovery Inc.

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