New Energy Systems Group Confirms SAIC Filings

SHENZHEN, China, March 23, 2011 /PRNewswire-Asia-FirstCall/ -- New Energy Systems Group (NYSE Amex: NEWN) ("New Energy" or the "Company"), a vertically-integrated original design manufacturer and distributor of lithium ion batteries and backup power systems, announced today that its 2008 filings for each of its subsidiaries; Shenzhen Anytone Technology Co., Ltd. ("Anytone"), E'Jenie Technology Development Co. Ltd. ("E'Jenie"), Shenzhen NewPower Technology Co. Ltd. ("NewPower"), and Kim Fai Solar Energy Technology Co., Ltd. ("Kim Fai Solar"), are accurate and current with the State Administration of Industry and Commerce ("SAIC").  The Company further confirmed that its 2009 filings have been submitted to the SAIC and are still being processed for public access at SAIC offices. New Energy is further providing summary detail below on its revenue, gross profit, operating income and net profit in RMB submitted to the SAIC for its 2008 and 2009 filings.

"The Company's CFO and I spent the past few mornings in the Shenzhen SAIC office verifying the accuracy of our SAIC filings from 2008. Further, we confirmed with SAIC that the Company has submitted our 2009 numbers in a timely manner and that SAIC is still processing our 2009 numbers.  Our 2010 SAIC filings are due by June 30, 2011 and we anticipate filing these prior to that date," began Chairman Weihe "Jack" Yu. "We want to ensure all our corporate documents, especially those available to the public, accurately reflect our financial performance and operations. We recognize the importance to have all our Company records, registrations and certifications up-to-date and consistent with results submitted to our auditors and the SEC in our regular filings.  We also understand that there are slight discrepancies between our RMB numbers and the US dollar conversions submitted to the SEC.  We have been told by our PRC accountant, Shenzhen DEDAO CPA, that these slight discrepancies relate to accounting treatments of invoices and receipts that differ between Chinese GAAP and US GAAP.  The Company will retain electronic copies of our SAIC data and will provide them to our investors upon request."  

Chairman Yu further stated, "We look forward to discussing our fourth quarter and full year 2010 results and providing investors with a full business update, as well as our 2011 guidance, on our March 29, 2011 conference call.  Separately, we have received several inquiries about the Company's State Administration of Taxation (www.chinatax.gov.cn) ("SAT") filings. The SAT generates a report of specific tax numbers, including revenues and net income, for every legal Chinese entity. These reports are utilized privately by the tax authorities to calculate taxes due to the State and are not publicly available under any circumstance. We therefore caution investors who claim to have acquired copies of our SAT filings that such reports may have been obtained improperly and therefore the source and integrity of the data should be carefully scrutinized."

The Company plans to report its fourth quarter and full year 2010 results on March 28, 2011. Details regarding the earnings release date and conference call was provided in the Company's press release dated Monday, March 21, 2011. Questions regarding New Energy Systems Group operations and the information detailed in this release can be directed to the Company's contacts listed at the close of this press release or asked directly to management during the question and answer period on the Company's pending conference call.  

About New Energy Systems Group

New Energy Systems Group is a vertically integrated original design manufacturer and distributor of lithium ion batteries and backup power systems for leading manufacturers of mobile phones, laptops, digital cameras, MP3s and a variety of other portable electronics. The Company's end-user consumer products are sold under the Anytone® brand in China while it's commercial and OEM batteries and battery components are sold under New Power and E'Jenie. The fast pace of new mobile device introductions in China combined with a growing middle class make it fertile ground for New Energy's end-user consumer products, as well as its high powered, light weight lithium ion batteries. In addition to historically strong organic growth, New Energy is expected to benefit from economies of scale, broader distribution and higher profit margins in 2011. Additional information about the company is available at: www.newenergysystemsgroup.com.

Forward Looking Statements

Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future results. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.

SOURCE New Energy Systems Group