HONG KONG, Sept. 6 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (NASDAQ:CESV) commented today on a recent speech given by the President of China, Hu Jintao. The speech focused on ways the country can conserve energy. President Jintao delivered the speech while presiding over a collective study meeting of the Political Bureau of the Central Committee of the Communist Party of China. President Jintao, in the speech, stated that "promoting the saving of energy and resources should be taken as a priority by the country and viewed as one of the basic principles the government should follow in the future." The country's President also outlined a series of steps necessary to achieve these objectives. First, he said, China should adjust its economic structure and shift economic growth in a manner so as to introduce advanced technologies while promoting the development of high-and-new technology industries and changing the updated growth mode that features high investment, high consumption, high pollution and low efficiency. Secondly, China should accelerate the process of building a technology support system for energy and resources and enhance the study of important technologies that may affect the development direction of the energy and resources industries. Third, he said, the current consumption structure should be optimized through promoting saving technologies and reasonable consumption ideas so that people may consume in a saving-oriented way. He also urged the country to promote a recycling economy that stresses recycling and clean production and set up a long term mechanism that saves energy and resources. "We applaud and fully support President Hu's initiatives on energy conservation as well as the promotion of energy saving technologies," said Sun Li, Chairman and CEO of China Energy Savings Technology. "We were in the energy savings business before it became a mainstream problem. President Hu's speech not only validates our current business model, but also provides the support to encourage government entities and the private sector to utilize products such as we offer. We will leverage our expertise and leadership position to continue to bring more and better energy saving products, renewable energies and solutions to the market place." "Energy shortage is a global crisis," continued Mr. Li, "In the United States, President George Bush just signed the Energy Policy Act of 2005 which provides great economic incentives to businesses and consumers to encourage conservation and energy efficiency as well as to expand the use of alternative and renewable energy. President Hu's speech attempts to address similar issues in China, and we hope that a government policy encouraging energy savings in the same manner as the U.S. will be launched very soon in China. That will further enhance the demand for our electricity saving products, and encourage us to venture into other energy saving areas. The strong support from the Chinese government, as demonstrated by President Hu's speech, highlights the important role that our products will play in the future in helping China conserve energy." About China Energy Savings Technology China Energy Savings Technology, Inc., through its 100% ownership 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: Tel: +1-480-902-3110 Web: http://www.cesv-inc.com/ Email: Ed Lewis CEOcast, Inc. Tel: +1-212-732-4300 DATASOURCE: China Energy Savings Technology, Inc. CONTACT: China Energy Savings Technology, Inc., +1-480-902-3110, ; or Ed Lewis of CEOcast, Inc., +1-212-732-4300 Web site: http://www.cesv-inc.com/

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