New Energy Systems Group Establishes $9.2 Million in Short Term Credit Lines with Chinese Asset Management Firms

SHENZHEN, China, April 27, 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 consumer branded backup power systems, has established two separate credit lines with China-based asset management firms. The short term loans total 60 million RMB or $9.2 million USD and are earmarked for capital investment and working capital needs of the Company.

New Energy Chairman Weihe Yu explained, "These agreements provide us with additional financial flexibility to fund our future growth. After evaluating several options, we decided that securing this funding at a reasonable cost was in our shareholders' best interest. While we do not anticipate drawing on these lines immediately, having access to this funding in advance of actually needing it is a competitive advantage in the current environment."  

On April 21, 2011 New Energy Systems Group entered into two separate loan agreements with Chuangding Investment Consulting (Shenzhen) Co., Ltd. ("CIC") and Beijing Guojincheng Asset Management Co., Ltd. ("GAM"). Under the agreements, CIC and GAM have each committed to lend up to RMB 30 million with an interest rate of 10% per annum. Each loan is guaranteed by Chairman Yu, is secured by 539,091 shares of the Company's common stock beneficially owned by Chairman Yu, and was not subjected to any processing or management fee. Balances on the loans can be paid down in installments or in its entirety, but mature 730 days from inception. For more details, please refer to the 8-K the Company filed with the SEC on April 26, 2011.

"We understand that New Energy, similar to many China-Based, US-Listed companies are in a situation where accessing the capital markets is not economically viable at this juncture," began Pinggui Zhang of GAM. "The reality is that many small to medium sized companies in China continue to grow rapidly and are in need of capital to achieve their goals. After extensive due diligence on the company and its growth plans, our team agreed that funding companies like New Energy Systems Group provides an excellent risk-adjusted return to our clients," Qin Liu concluded.

About Chuangding Investment Consulting (Shenzhen) Co., Ltd.

Chuangding Investment Consulting (Shenzhen) Co., Ltd. was founded in 2007 and the current assets under management are approximately 300 million RMB. Chuangding focuses on investments in traditional industries, including energy, technology and medical equipment.

About Beijing Guojincheng Asset Management Co., Ltd.

Beijing Guojincheng Asset Management Co., Ltd. was established in 2010 and the current assets under its management are around 500 million RMB. Guojincheng's investment is majorly focused on the industries related to new energy, clean energy, and environmental protection and energy-saving products.

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

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary and affiliated companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

SOURCE New Energy Systems Group