China Energy Savings is There When New Power Plants Won't Stop the Current Energy Crisis

Sep 20 - PRNewswire

HONG KONG, Sept. 20 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc. (BULLETIN BOARD: CESV) today commented on the building of new power plants in China.

With the world's energy crisis as the backdrop, China's own crisis is growing not only in size, but in concern as well. High summer temperatures are creating power shortages in a growing number of Chinese provinces (24 so far out of 31). Worst-hit regions are those along the Yangtze River and in the Pearl River delta.

Mr. Sun Li, Chairman of China Energy Savings Technology said, "There are very few glimmers of hope that things will get better, at least in the next few years, and the government itself expects things to actually get worse before they get better. It's great that more power plants are being built, but we're in the here and now, with a real energy crisis on our hands, and if human beings don't take energy conservation seriously, it may not matter how many power plants come on-line over the next decade."

Power plants still cannot meet demand (which is growing at a rate of over 15% a year). Many power plants started investing in new generating capacity last year, but are not expected to provide any real additional energy for at least two more years. In Guangdong, for example, their new capacity of 10,300 megawatts is not expected to come online any sooner than the middle of next year. However, this is sooner than had earlier been anticipated.

"While we wait for all of this additional capacity to make a difference, we must conserve. We must think conservatively when it comes to energy consumption, and those with any ability whatsoever to mandate certain energy saving initiatives should do so," said Mr. Sun.

China Energy Savings Technology has been supplying Chinese governments, municipalities, shops, factories, and businesses energy savings technology for many years. Their products are designed to stabilize the AC current and voltage, and then use it as efficiently as possible.

"In theory," continued Mr. Sun, "Our electricity is supposed to be supplied at 220 volts. In reality much of our AC current fluctuates between 160 and 260 volts. This is wasteful, inefficient and detrimental to all electric devices like machines and lightings," explained Mr. Sun. "Our products are designed to stabilize that current and voltage at 200 to 220 volts. By doing so, appliances, machines, streetlamps, and anything else requiring an AC current to operate can do so as efficiently, and last as long as possible. Our products do make a difference. We are not only helping end users conserve energy; we're helping them save money. Demand remains on the rise."

Factories all over China are feeling this impact, and they're feeling it financially. In Zhejiang's provincial capital of Hangzhou, public and private companies with 8-hour days have recently been forced to shut down for 4 days a week. Foreign-owned companies will close for 3 days a week.

Shanghai's Volkswagen plant was also recently forced to shelve production for several days because of shortages. In Shanghai, the government asked thousands of companies to take turns putting production on hold one week per month.

"As we grow economically, energy savings plays a very important role in the economic growth of China. We have to take energy conservation very seriously. We'll forever remain with one foot in the dark ages if we don't," concluded Mr. Sun.

About China Energy Savings Technology

The company is engaged in the manufacturing and sales of advanced technology energy-saving products in the PRC. According to the test reports by various PRC authorities including National Center of Supervision & Inspection on Electric Light Source Quality (Shanghai) issued in September 2002 and Shenzhen Academy of Metrology & Quality Inspection issued in December 2002, the energy saving products of Shenzhen Dicken Group have the energy saving rates ranging from approximately 25% to 45%. The energy saving projects conducted by Starway Group 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 and small arcades 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:

John Roskelley, President,

First Global Media

Tel: +1-480-902-3110

China Energy Savings Technology, Inc.

CONTACT: John Roskelley of First Global Media, +1-480-902-3110, forCESV