APWRW A-Power Energy Generation Sys (MM)

A-Power Energy Generation Systems Ltd. (NASDAQ:APWR) (NASDAQ:APWRU) (NASDAQ:APWRW) ("A-Power"), announced today that its Chinese operating subsidiary, Liaoning GaoKe Energy Group (�GaoKe�), has entered into a license agreement with Fuhrlander AG (�Fuhrlander�) of Germany that gives GaoKe the right to produce and sell Fuhrlander�s 2.5 MW series wind turbine in China. As part of the agreement, Fuhrlander will assist GaoKe in developing a production plant under construction in Shenyang that emulates Fuhrlander�s plant in Germany, with completion expected in mid-2008. Fuhrlander will also work closely with GaoKe to ensure that the wind turbines are produced to specifications. Under the technology license, GaoKe has the right to any advancements or improvements that Fuhrlander makes to its 2.5MW series wind turbine without charge. To secure these rights, GaoKe has agreed to pay Fuhrlander approximately $13.9 million (which covers the license, training and a fixed royalty). Fuhrlander will also receive a minority percentage of the gross profit generated from the sale of the first 100 wind turbine units manufactured by GaoKe. The sales price of the 2.5MW wind turbine is expected to be RMB 20 to 24 million ($2.7 to $3.2 million) with 8 to 12% gross margins. GaoKe will have the capacity to produce a maximum of 300 of the 2.5MW wind turbines on an annual basis after the first phase of its wind production facility is completed later this year. Mr. Jinxing Lu, A-Power�s Chairman and CEO, commented, �We are very excited to become Fuhrlander�s partner in China. Fuhrlander is a highly respected wind turbine developer in Germany, and it has been supplying state-of-the-art turbines to the global markets for over 20 years. Its 2.5 MW wind turbine is one of the largest commercialized land-based wind turbines in the world, and we expect that it will play a major role in filling the substantial demand in China�s growing green energy market. 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 may contain 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 about facility construction plans and expected capacity, product launch dates, expected sales prices and profitability, and anticipated commercial acceptance. 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: unanticipated construction or product introduction delays; 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 competitive products; 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.