CESV China Energy Savings Technology (MM)

Net Income $25 million, EPS $1.04 HONG KONG, Dec. 22 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV), a leading provider of energy saving products in China, reported yesterday result accomplishments for the fiscal year ending September 30, 2005 (Form 10K filed December 20, 2005: http://www.sec.gov/Archives/edgar/data/1119601/000114420405040435/v031666_10ks b.htm). Since the Company has owned a 100% stake in Starway Management Limited as of September 30, 2005, the 25 million in net income is the final figure for the twelve months ending September 30, 2005 that does not require deduction of minority interest. Based on the closing price of $7.35, as of December 20, 2005, the current PE ratio and earning per basic and diluted share of the Company are 7x and $1.04 respectively. Sun Li, Chairman and CEO of China Energy Savings Technology commented, 'we have a profitable year for fiscal 2005 and we look forward to a prosperous 2006, exploring more new ventures to bring more profit to our shareholders.' 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. For more information, please contact: Jason Genet Chief Representative in US Email: DATASOURCE: China Energy Savings Technology, Inc. CONTACT: Jason Genet, Chief Representative in US, , for CESV Web site: http://www.dicjenhitech.com/

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