CESV China Energy Savings Technology (MM)

China Energy Savings Enters Into Agreement to Provide Energy Savings Products to Chinese Government Company to Receive 80% of the Energy Savings over Next Five Years HONG KONG, July 15 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV) announced today that its energy savings subsidiary in China, has entered into a profit sharing contract for the first phase of a Street Lights Saver Project in Zhuhai City, China. Under the agreement with the Zhuhai Municipal Street Lights Administration, the Company will install energy savings equipment for street lamps in Zhuhai City, helping the region lower energy costs as China heads into its peak energy season. Under the five- year agreement, the Company will receive 80% of the energy savings on a monthly basis. Under the agreement, the Company will supply its energy saving products to be used in the streetlights of the city, including the areas surrounding Zhuhai Avenue, Airport Ring Road, Nanwan Avenue and Xiangsheng Bridge. "With electricity and energy costs soaring in China, our products offer many cost advantages to customers such as this Zhuhai streetlights project," said Sun Li, Chairman and CEO of China Energy Savings. "Under this agreement, the Zhuhai government will reduce its energy consumption costs by an average of 25%. With companies and municipalities such as Wuhan City, where we recently entered into a $36 million Letter of Intent to provide our energy saving products and technology, increasingly focused on reducing costs and relieving the energy burden on the government, China Energy Savings' products offer a compelling advantage." About China Energy Savings Technology China Energy Savings Technology, Inc., through its subsidiary, Starway Management Limited, which in turn holds 100% interest of its energy savings subsidiary in China, engages in the development, manufacture, sale, and distribution of energy-saving products for use in commercial and industrial settings in the People's Republic of China. According to test reports by various PRC authorities including the National Center of Supervision & Inspection on Electric Light Source Quality (Shanghai) issued in September 2002, Shenzhen Academy of Metrology & Quality Inspection issued in December 2002 and approved by the State Quality Supervision Inspection Department, the energy saving products of Starway's subsidiaries may provide energy saving rates ranging from approximately 25% to 45%. The energy saving projects conducted by Starway's subsidiaries mostly relate to public or street lighting systems, government administration units, shopping malls, supermarkets, restaurants, factories and oil fields, etc. There are small and large-scaled projects: the small-scaled projects relate to restaurants, shops, small arcades, offices and households through the sale of equipment, and the large- scaled projects relate to large shopping malls, supermarkets, factories and public bodies through the provision and installation of equipment over a term usually extended for years. With the world's energy crisis as the backdrop, and global oil prices breaking record highs, China's own crisis is growing not only in size, but in concern as well. Coal prices and energy consumption in China are also at all-time highs. For these reasons, the company's products are widely used and highly recommended in China because of the huge energy market and the excellent prospect of energy savings. Safe Harbor Statement As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its business model and strategic plans; and the risks described from time to time in the Company's SEC filings. For more information, please contact: John Roskelley, President, First Global Media Tel: +1-480-902-3110 Web: http://www.cesv-inc.com/ Email: DATASOURCE: China Energy Savings Technology, Inc. CONTACT: John Roskelley, President, First Global Media, +1-480-902-3110, , for China Energy Savings Technology, Inc. Web site: http://www.cesv-inc.com/

Copyright