Mon Jun 30, 2008 8:11am EDT

* Reuters is not responsible for the content in this press release.


On 25 June 2008, Dong Fang Electrical Machinery Co. Ltd (DFEM) signed a
co-operation agreement with The Switch to combine the world-class
technology in megawatt class permanent magnet generators for wind power
generation from The Switch with DFEM's production capabilities to match
rapidly growing market needs. The agreement will provide The Switch with
strong production capacity in China, while Dong Fang gains access to the
marketing and customer network through The Switch, which as independent
supplier offers converter and generator packages to wind turbine
manufacturers in Europe, the Americas, China and other parts of Asia.

    According to the specific terms of the agreement between the two
companies, The Switch will provide DFEM with the production concept and
technology behind its successful permanent magnet generator product
family. DFEM will be responsible for the production of these generators
primarily at its new factory in Deyang, in the southwest Sichuan Province
in China.

    The Switch operates as an independent supplier providing the technology
for permanent magnet generators and full-power converters for various
OEMs and is active in China and other markets, such as Europe, the
Americas and other Asian countries. DFEM, through license agreement, can
provide its customers with permanent magnet generators of this
technology. The Switch will be in charge of all marketing and sales work
outside China, and jointly deal marketing and sales with DFEM within
China. The DFEM network will be possibly utilized for after sales of the

    The DFEM factory will be able to produce up to 2,000 permanent magnet
generators annually in the range of 1 MW to 6 MW. This will enable China
and other countries to better meet their ambitious wind power goals in
the upcoming years.

    "We are bringing the world's most advanced wind power generation
technology to China through this agreement," says Mr. Han Zhiqiao,
General Manager of DFEM. "This will not only enable us to open a new
segment within our domestic Chinese market, but additionally our
co-operation with The Switch will give us access to new markets abroad."

    Mr. Jukka-Pekka Maekinen, President and CEO of The Switch agrees: "Our
strategy from the start has been to bring leading technology, including
product design, and production from our factories in Finland aided by our
local partner whose mass production capabilities allow us to match the
large volume demands for alternative energy generation solutions. We have
already reached a leading position in converters, and this co-operation
is a natural step for us to gain a leading position also for generators."

    The joint efforts of the two companies offer a promising future:
permanent magnet generators represent a winning technology, growing
faster than other areas in wind power technology. Furthermore, the
Chinese wind power market is estimated to grow from an installed base of
nearly 6 gigawatts at the start of 2008 and will have a capacity to
generate 20 gigawatts of power from the wind by 2010, making China one of
the leading countries in the world in wind power generation.

    Dongfang Electrical Machinery Co., Ltd ( DFEM) was founded 1958. As one
of the state-owned skeleton enterprises coming down to national security
and the country's economic vitals, DFEM is an important base of China in
developing and manufacturing power generating equipment. It mainly
engages in design, production and sales of various type of complete sets
of hydro units up to 700MW (single unit capacity), coal or gas and/or
nuclear-fired steam turbo-generators up to 1000MW (single unit capacity)
, complete sets of wind turbine units, large and medium sized AC & DC
motors, special motors as well as relative automation, speed governor,
excitation system and auxiliaries, with the annual output capability of
5,000MW hydro generating equipment and 25,000MW steam turbo-generators
and nuclear power generators. Up to the end of 2007, it has produced
170,000MW of power generating equipment in total.. Shouldering the heavy
task of "Chinese equipment equips China", DFEM is consistently keeping in
mind the idea of providing customers with high-performance products and
trustful and timely services.

    The Switch provides unique power conversion systems - power converters,
electrical machines and other electrical equipment needed for distributed
power generation and industrial processes. Customers use the innovative
products and systems of The Switch as part of their own machines or
systems in wind turbines and other renewable energy applications or
energy conserving applications. The Switch solutions support the battle
against climate change and help to preserve energy resources.

For further information, please contact:

Jukka-Pekka Maekinen
CEO and President
The Switch
Mobile +358 40 8080 580

Mr. Han Zhiqiao
General Manager
Dong Fang Electrical Machinery
Tel.: 0086 838 2410718


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