A-Power Receives LOIs for 380 2.5 MW Wind Turbines

  
    
  
  
    
      A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR, APWRW, 
      APWRU) ("A-Power"), announced today that its wholly owned Chinese 
      operating subsidiary, Liaoning GaoKe Energy Group (“GaoKe”), 
      has received letters of intent for 380 2.5 MW wind turbines, a number 
      that will utilize all of its anticipated plant capacity through 2009. 
      The company is presently engaged in negotiations to finalize these 
      contracts and turn them into purchase orders. As was previously 
      announced, the first phase of the plant is scheduled to be completed in 
      the third quarter of this year.
    
    
      Mr. Edward Meng, A-Power’s CFO commented, “As 
      we have previously announced, we have recently acquired rights to both 
      2.5 MW turbines from Fuhrlander AG of Germany and 225 kW and 750 kW 
      turbines from Norwin A/S of Denmark and we are planning to begin 
      producing these in our new facility in Shenyang later this year. At this 
      time we are very glad to report that we have already received a number 
      of letters of intent that aggregate to 380 units to purchase the 2.5 MW 
      turbines. In addition, we have received a number of LOI’s 
      for Norwin’s 750 KW turbines. As previously 
      stated, the sales price for the 2.5MW wind turbine is expected to be RMB 
      20 to 24 million ($2.7 to $3.2 million), while the 750kw turbine is 
      expected to sell for RMB 3.4 to 3.7 million ($0.46 to $0.51 million). 
      Both are expected to have gross margins of approximately 8 to 12%. In 
      order to meet this demand as quickly as possible, we are making 
      arrangements to import many of the subassemblies from suppliers around 
      the world that presently supply Fuhrlander and Norwin. Over time we are 
      confident that we will be able to identify second-source qualified 
      suppliers for many of these subassemblies in China to further improve 
      the gross margins.”
    
    
      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 about anticipated sales, 
      prices and margins of our products and planned completion and production 
      capabilities of our new facility. 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 competitors; 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.