CESV China Energy Savings Technology (MM)

New Technology Offers Several Advantages Compared to Solar Power HONG KONG, Oct. 12 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV), a leading provider of energy saving products in China, announced today it has entered into a Letter of Intent with Beijing Zhongmei Chengxin Technology Ltd. ("Beijing Zhongmei") to develop Thermo-photovoltaic Cell Technology. Beijing Zhongmei developed this high-end nano technology, which has been patented in China and international markets. This new solar cell can absorb visible light, including a certain amount of ultra-red light at a thermo-photovoltaic conversion rate of over 35 percent. Currently, the highest rate that a traditional mono-crystalline silicon cell can achieve is only 20%. The companies plan to industrialize the new thermo cell product for a variety of energy-saving applications. The two parties plan to cooperate to manufacture products such as solar energy chip sets, thermo-photovoltaic cells to meet the increasing demand for low- cost and high- effect solar energy generators in all sizes, power stations and generator networks. These generators could be used in areas affected by hurricanes or natural disasters that require extensive rebuilding using mobile power sources, such as in New Orleans and Florida. It is widely applicable to solar generation from households, urban cities, roof power station suitable for those in rural areas and for special use as a standalone power station and generator network. The products are expected to provide alternatives to the high oil and coal prices. The products offer several advantages versus established solar technologies. Based upon a cost of less than $2 per watt, it is much more cost effective. Its small size also provides an additional advantage. It also can absorb the solar radiation energy as well as environmental heat from its surroundings, in contrast to solar batteries, which cannot absorb ultra-red energy in a short distance. The reverse bias being added to the thermo-photovoltaic cell accelerates electronic flow speed, creating a tunnel effect that contributes to the drastic increase in current, which solar batteries are unable to achieve. "We are excited to make this investment in Beijing Zhongmei as it will expand our portfolio of energy-saving products," said Sun Li, Chairman and CEO of China Energy Savings, "This new technology will help relieve the power shortages as a result of the increase in oil and coal prices. It also is environmentally friendly. With the growing need for innovative energy solutions, we look forward to being able to offer our customers alternatives using solar power." 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 of CEOcast, Inc., +1-212-732-4300 for China Energy Savings Technology, Inc.

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