Forbes Magazine Names Harbin Electric a Top SME

HARBIN, China, Jan. 22 /Xinhua-PRNewswire-FirstCall/ -- Harbin Electric,
Inc. (or "the Company", Nasdaq: HRBN), a market leader in customized linear
motors, motor/controller automation systems, automobile specialty
micro-motors,
and other special motors, today announced that it has been ranked number three
by Forbes (China) magazine among the Most Promising Small and Medium-sized
Enterprises (SMEs) in China.
Harbin Electric Chairman and Chief Executive Officer Tianfu Yang welcomed
the publication of the Forbes list. He said: ''We are honored to be ranked
No.
3 among the 200 best small and medium-sized enterprises in China. "This is a
prestigious list. Private SMEs are the dynamos of China's economy, and the
200 companies on the list represent the fastest growing group in the Chinese
corporate sector. Harbin Electric is a terrific example of this dynamism.
Between 2004 and 2006, we had average sales growth of 168%, profit growth of
160% and a return on total assets of 33%. We have great products and great
employees. I am very proud to be recognized by Forbes China as one of the top
three in this outstanding group of enterprises.''
In compiling the list, Forbes China reviewed some 10,000 private sector
enterprises with 2006 revenues between RMB 5 million (US$680,000) and RMB 1
billion (US$135 million) whose principal operations are within Chinese
territory. It then selected 200 companies based on their financial
performance between 2004 and 2006, and conducted an on-site review to
determine the actual ranking. Among other measures, Forbes China looked at
revenue and profit growth, return on total and net assets, and profit margin
in 2004 to 2006. The magazine also took into account the 2007 performance of
companies on the list.
Harbin Electric's Chairman Yang participated in the SME Investment and
Development Forum as an invited speaker at a panel discussion, as well as in
an award ceremony organized by Forbes China in Shanghai on Jan. 17.
The list of 200 China's Most Promising Small and Medium-sized Enterprises
appears in the January issue of Forbes China,
http://www.forbeschina.com/inc1/2008sme.htm .
About Harbin Electric, Inc.:
Harbin Electric, headquartered in Harbin, China, is a market leader in
linear motors, motor/controller automation systems, automobile specialty
micro-motors, and other special motors. It is the first and currently, to our
knowledge, the only Chinese company to provide product development and
integrated production tailored to customer applications in this industry. The
Company takes pride in its environmental and social policies. It provides
customers with energy efficient products and its employees with a family-
friendly working environment, based on competitive compensation and humane
work schedules.
A strong focus of Harbin Electric is its emphasis on high technology,
innovation and creativity, based on a strong research and development (R&D)
capability. It recruits talent worldwide and through collaboration with top
scientific institutions. Its ISO certified manufacturing facility is equipped
with state-of-the-art production lines and quality control systems to ensure
product quality.
Harbin Electric uses its close customer relationships, its understanding
of local markets and customer needs, and low production costs to outperform
its international and domestic peers. It has steadily improved its
competitive position in the domestic market for linear motors.
China's rapidly expanding economy and government policy supporting the
industry have provided a strong growth platform for Harbin Electric. The
Company has a multifaceted growth strategy that it is successfully executing.
It produces high quality, energy efficient products for customers and has
delivered high annual growth in revenues and earnings to shareholders. To
learn more about Harbin Electric, visit http://www.harbinelectric.com .
For investor and media inquiries, please contact:

Harbin Electric, Inc.

In China
Tel: +86-451-8611-6757
Email: MainlandIR@Tech-full.com

In the U.S.
Christy Shue
Executive VP, Finance & Investor Relations
Tel: +1-631-312-8612
Email: cshue@HarbinElectric.com

SOURCE Harbin Electric Inc.

In China - +86-451-8611-6757, or MainlandIR@Tech-full.com; or In the U.S. -
Christy Shue, Executive VP, Finance & Investor Relations, +1- 631-312-8612, or
cshue@HarbinElectric.com, both of Harbin Electric, Inc.