CESV China Energy Savings Technology (MM)

Company To Explore Alternative Energy Opportunities HONG KONG, Sept. 15 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV), a leading provider of energy saving products in China, announced today plans for the Company to explore various new growth opportunities and technology solutions. As oil prices have recently reached record highs, the Company intends to expand beyond its current electricity saving products into alternative energy areas, such as fuel cells, solar power, and micro hydrogen generation technologies to address China's growing need for energy conservation and alternative energy solutions for renewable energy and environmental protection. "We were at the forefront of developing energy-saving solutions for the electricity shortage problem in China, and developed our energy saving devices as a result. That business has been growing rapidly as a result of our early entry into the market, enabling us to gain a leader position," said Sun Li, Chairman and CEO of China Energy Savings Technology, "The global oil price recently reached $70 per barrel at a time when the fast growing Chinese economy increasingly depends on imported oil. In recent months, we have seen a dramatic oil price increase and supply shortage in China. More and more of our clients are asking us to explore solutions and business opportunities to tackle this energy crisis." As a result, the Company today announced the following initiatives: * Form a committee headed by professionals to look into new technologies and businesses opportunities inside and outside the company in regards to the usage of fossil oil; * Actively seek strategic partnerships for technology licensing and collaboration, product cross-marketing opportunities and acquisitions while maintaining internal research and development activities,; * Utilize vast resources and knowledge of the Company's current board members, advisors and outside experts to quickly narrow down those commercially feasible solutions in the area of energy conservation and efficiency as well as the use of alternative and renewable energy. Appointed Paul Risberg, its independent director, to act as a liaison to further discuss cooperation with U.S. companies focused on energy conservation. Once those opportunities have been identified, the Company intends to leverage its existing distribution channel and industry know-how to quickly bring the solution and product to marketplace. "While we are excited about some potential new projects to provide solutions to the current high oil price as well as long term investment in our future product offerings such as renewable and environmental energy savings solutions, our focus will continue to be to meeting our customers' demand for our energy saving products, and to deliver solid financial results for the balance of 2005," added Mr. Li. 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: Ed Lewis CEOcast, Inc. Tel: +1-212-732-4300 DATASOURCE: China Energy Savings Technology, Inc. CONTACT: Ed Lewis, CEOcast, Inc., +1-212-732-4300

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