China Power Equipment Offers Two Amorphous Alloy Sources

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 China, 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 Power, 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 China. 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: [email protected]

    or

    Christensen
     Mr. Yuanyuan Chen (English and Chinese)
     Mobile: +86-139-2337-7882 in Beijing
     Email:  [email protected]

     Mr. Tom Myers (English)
     Mobile: +86-139-1141-3520 in Beijing
     Email:  [email protected]

     Ms. Kathy Li (English and Chinese)
     Tel:   +1-212-618-1978 in the USA
     Email: [email protected]

SOURCE China Power Equipment, Inc.