CESV China Energy Savings Technology (MM)

China Energy Savings Provides Energy Savings Products to 250 Residential Areas Managed By China Overseas Property Management Limited in China Contract Expected to Generate Revenue of approximately $24.6 million over three years HONG KONG, July 26 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV), a leading provider of energy management products in China, announced today that its subsidiary Shenzhen Dicken Technology Development Limited ("Dicken Technology") signed a three-year agreement, expected to generate revenue of $24.6 million, with the Shenzhen Branch of the largest Chinese property management company, China Overseas Property Services Limited ("China Overseas"), to provide energy savings equipment to up to 250 residential dwellings managed by the property company. The Company will begin to receive revenue upon installation of the equipment at each location. The initial installations will be in two luxury residential areas in Shenzhen, namely, Dynasty Court and The Seaview. Under the agreement, China Energy will receive 70% of the energy savings, while China Overseas will receive 30% of the electricity savings. China Overseas maintains extensive parking facilities at its properties. These facilities consume electricity 24 hours a day, in order to provide adequate lighting for drivers. Under the agreement, China Overseas is expected to reduce its annual electrical costs at these facilities by an average of at least 25% annually as a result of it is share of the energy savings. Due to the high level of annual savings, the term of the contract is for three years, instead of five to seven years as is customary for the Company's agreements. After the initial installation is completed, the parties plan to expand the Company's energy saving technology to China Overseas' other housing management districts in China. "The energy savings equipment will first be installed at these two luxury residential areas. The average savings in these two areas is above 25% due to the high-end technology of these products. After the 3-year life of the contract, all of the energy savings equipment will be owned by our company. We selected China Energy's products due to the stable performance of Dicken's products. Our company plans to install the equipments to all our 250 housing management districts in China, which will be implemented in several phases. Our competitive ability can be increased in the housing management profession by reducing the operation cost," said Mr. Dong, the Energy Savings Project Manager of China Overseas. Sun Li, the Chairman and CEO of China Energy Savings, said, "We see China Overseas' usage of our products as recognition of the benefits of our technology. China Overseas is the largest housing management company, managing luxury residential areas in China. We are excited to begin aggressively to roll out our products throughout their organization. We anticipate the installation for the 250 housing residential areas in China to be completed within 10 months." About China Energy Savings Technology China Energy Savings Technology, Inc., through its ownership interest in Starway Management Limited 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. 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. Contact Information: John Roskelley President First Global Media 480-902-3110 Website: http://www.cesv-inc.com/ Email: Ed Lewis CEOcast, Inc. 212-732-4300 Website: http://www.cesv-inc.com/ Email: DATASOURCE: China Energy Savings Technology, Inc. CONTACT: John Roskelley, President, First Global Media, +1-480-902-3110, ; Ed Lewis, CEOcast, Inc., +1-212-732-4300, Web site: http://www.cesv-inc.com/

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