CER's New Manufacturing Facility on Track for Phase One Completion & Operation This Year

SHANGHAI, Sept. 16 /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 Phase One construction of its new, state-of-the-art manufacturing facility in Yangzhou, Jiangsu Province, is on schedule for completion and operation in the fourth quarter of this year.

Phase One of the new facility will bring on approximately 1.7 million square feet in production, research and engineering space, an increase of almost five times over CER's current 356,000-square-foot production facility.

Production machinery and equipment for the new facility is on order with installation and shakedown testing scheduled for October.

"We are moving forward, on schedule, with the construction of our new facility," CER Chairman and Chief Executive Officer Qinghuan Wu, said, "As we have said, the facility represents an important step for CER that will advance its standing as a world-class manufacturer of heat recovery process systems for heavy industry worldwide.

"We intend to commence construction on Phase Two of the new facility immediately after Phase One is complete," Mr. Wu said, adding that Phase Two will nearly double the size of the current new facility when completed. Phase Two construction is anticipated to be completed in 2012.

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.