China Sun Group High-Tech Co. Signs LOI to Jointly Produce Finished Li-Ion Batteries for Electric Vehicles

Oct 27, 2009, 13:22 ET from China Sun Group High-Tech Co.

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LIAONING PROVINCE, China, Oct. 27 /PRNewswire-FirstCall/ -- China Sun Group High-Tech Co. (OTC Bulletin Board: CSGH), which through its wholly-owned subsidiary Dalian Xinyang High-Tech Development Co. Ltd. ("DLX") has the second largest cobalt series production capacity in the People's Republic of China ("PRC"), announced today that on September 27, 2009, DLX signed a Letter of Intent (LOI) with Beijing Zhongxinlian Shuangsheng Sci-Tech Co., Ltd. to jointly produce finished lithium ion (li-ion) batteries under the registered brand name "ShenKun." The 100An serial power ShenKun batteries are made with DLX's lithium iron phosphate product, an alternative, environmentally-friendly energy component.

Since DLX began production of its new li-ion product in May 2009, two of China's leading battery producers, Shandong Shengong KP-Power Co., Ltd. and Beijing Zhongxinlian Shuangsheng Sci-Tech Co., Ltd., have successfully completed testing of li-ion batteries using DLX components. The companies are now demonstrating a prototype battery to electric vehicle manufacturers to facilitate sales of finished li-ion products. In addition, China Sun Group has 21 customers undergoing technical testing of its new li-ion product.

Bin Wang, CEO of China Sun Group, said, "The goal of our strategic agreement with Beijing Zhongxinlian is to accelerate the commercialization of our green, li-ion battery product to the global electric vehicle manufacturing market. With the production of finished li-ion batteries, China Sun Group looks forward to expanding its business worldwide as a complete, end-to-end battery product manufacturer."

About China Sun Group

China Sun Group High-Tech Co., ("China Sun Group") produces anode materials used in lithium ion batteries. Through its wholly-owned operating subsidiary, Dalian Xinyang High-Tech Development Co. Ltd ("DLX"), the Company primarily produces cobaltosic oxide and lithium cobalt oxide. According to the China Battery Industry Association, DLX has the second largest cobalt series production capacity in the People's Republic of China. Through its research and development division, DLX owns a proprietary series of nanometer technologies that supply state-of-the-art components for advanced lithium ion batteries. Leveraging its state-of-the-art technology, high-quality product line and scalable production capacity, the Company plans to create a fully integrated supply chain from the primary manufacturing of cobalt ore to finished products, including lithium ion batteries. For more information, visit http://www.china-sun.cn.

The statements contained herein that are not historical facts are considered "forward-looking statements." Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, statements regarding the potential growth of the markets are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the effect of political, economic, and market conditions and geopolitical events; legislative and regulatory changes that affect our business; the availability of funds and working capital; the actions and initiatives of current and potential competitors; investor sentiment; and our reputation. We do not undertake any responsibility to publicly release any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report. Additionally, we do not undertake any responsibility to update you on the occurrence of any unanticipated events, which may cause actual results to differ from those expressed or implied by any forward-looking statements. The factors discussed herein are expressed from time to time in our filings with the Securities and Exchange Commission available at http://www.sec.gov.

      Contact:
        China Sun Group
        Thomas Yang
        Assistant to the President
        Tel: 917-432-9350 (U.S.) or
        86 411 8288 9800/8289 2376 (China)
        Fax: 86 411 8289-2739

SOURCE China Sun Group High-Tech Co.



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