APWRU A-Power Energy Generation Sys (MM)

A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR) (NASDAQ: APWRW) (NASDAQ: APWRU) ("A-Power"), announced today that it has entered into an agreement with Inner Mongolia Wulahot Hengwang Heat & Electricity Generation Co., Ltd. (�Hengwang�) to increase the size of its existing contract worth $175 million by approximately $105 million to $280 million. The initial contract entered into between A-Power and Hengwang was for the construction of a 300 MW stand-alone distributed power generation facility for a new development zone located in Inner Mongolia. As a result of the decision by the Inner Mongolian government authorities to enlarge the size of the development zone area, Hengwang is increasing the size of the planned distributed power generation facility from 300MW to 400MW. The construction of this new facility is expected to be completed in January 2010. Mr. Jinxiang Lu, A-Power�s Chairman and CEO, commented, �The Hengwang project is a significant project for A-Power and is the first of many large distributed power generation projects we expect to receive in Inner Mongolia and other rural areas of China. The PRC government continues to promote new development zones in these areas, most of which are typically far removed from the national grid. By producing power at a local level, our distributed power generation systems eliminate the need for the state-owned utilities to string new power lines over hundreds of miles to reach these new developments. In addition, our systems can efficiently provide all of the necessary heat and power required by these new developments and eliminate the increased electricity demand burden that would otherwise be put on the national grid.� With the increased value of this contract, A-Power�s backlog has increased to $566 million. About A-Power A-Power Energy Generation Systems, Ltd., formerly Chardan South China Acquisition Corp., through its PRC operating subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of distributed power generation systems in China and will enter into China�s wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University and the China Sciences Academy in Guangzhou. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about A-Power and GaoKe. Forward-looking statements are statements that are not historical facts, including statements relating to new or amended contracts and entry into expanded markets. Such forward-looking statements, based upon the current beliefs and expectations of A-Power�s and GaoKe�s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which GaoKe is engaged; cessation or changes in government incentive programs; fluctuations in customer demand; management of rapid growth and transitions to new markets; intensity of competition from or introduction of new and superior products by other providers of distributed power generation and other energy generation technology; timing, approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in A-Power�s filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Neither A-Power nor GaoKe assumes any obligation to update the information contained in this press release.