Hong Kong Highpower Technology Announces Growth Expectations and Expansion Plans

HONG KONG & SAN JOSE, Calif.--(Business Wire)--
Hong Kong Highpower Technology, Inc. (Amex: HPJ), a developer,
manufacturer and marketer of nickel-metal hydride (Ni-MH) batteries
and related products, today announced its growth expectations and
business expansion plans following the Company's recent common stock
listing on the American Stock Exchange.

Hong Kong Highpower Technology's batteries are used in consumer
applications such as portable electronic devices and toys, and
industrial applications such as medical devices and communications
equipment. The Company's manufacturing and product development
facilities are located in Shenzhen, China, which facilitates low labor
costs and easy access to land and raw materials, as well as additional
cost and cycle time advantages garnered by proximity to electronics
supply chains and end-markets. Hong Kong Highpower Technology's
products are distributed worldwide, and customers include leading
battery OEMs Energizer Battery and UniRoss.

Since inception in 2001, Hong Kong Highpower Technology has
achieved a compounded annual sales growth rate of 112% to net sales of
$73.3 million in 2007. The Company's net sales target for 2008 is
approximately $90 million representing year-over-year growth of more
than 20%.

George Pan, Chairman and Chief Executive Officer stated, "Our
significant expertise in Ni-MH battery technology and development
enables us to maintain the highest standard of product quality and
consistency, control our costs, and keep pace with evolving industry
standards. Our large scale quality manufacturing is also an important
competitive advantage, and last year we reached a major milestone in
Ni-MH battery production of 100 million units for the year.

"We are leveraging our competitive leadership and expertise in
Ni-MH batteries to enter the lithium-ion-based battery market, which
will provide a highly complementary product line and incremental
revenue stream," Pan continued. "We have begun production of a line of
lithium-ion (Li-ion) batteries as samples for potential customers to
complement our current Ni-MH battery products so that we are less
vulnerable to price increases in nickel. We intend to expand
production of our Li-ion battery products in the near future, and we
also intend to expand our market share geographically by increasing
our marketing investment to the U.S., Russia, Europe and India this
year."

Ni-MH and Li-on Batteries

Hong Kong Highpower Technology's Ni-MH rechargeable batteries have
been developed to respond to a number of specific market requirements
such as recyclability, high power, high energy density, long life, low
cost, environmental safety and other important characteristics for
consumer and OEM applications. Both Ni-MH and Li-ion batteries can
replace high toxicity nickel cadmium (Ni-Cad) rechargeable batteries,
and regulatory requirements, mostly in European countries, are
mandating moves toward Ni-MH and Li-ion standards. This trend is
expected to substantially replace single-use batteries over the long
run, resulting in large scale growth and expansion of the rechargeable
battery market and better outcomes for the environment. Demand for
Li-ion batteries is currently outpacing worldwide supply, and the
Li-ion share of the global rechargeable battery business is expected
to nearly double to $6.0 billion by 2012.(1)

In 2006, the global rechargeable battery market exceeded $7.0
billion.(1) Through its significant production capacity and
established distribution networks, Hong Kong Highpower Technology has
become a worldwide leader in the Ni-MH rechargeable battery market
capturing an estimated 10% market share. The Company plans to expand
its global market share to 15% in 2008 and to 30% by 2012 through
strategies to expand its overseas distribution channels and grow its
existing and new product offering to drive revenue.

HPJ Common Stock

Hong Kong Highpower Technology common stock began trading on June
19, 2008 on the American Stock Exchange. A public offering of 603,750
shares of common stock at $3.25 per share (including exercise of the
over-allotment option) was completed on June 26, 2008.

About Hong Kong Highpower Technology, Inc.

Hong Kong Highpower develops, manufactures and markets
rechargeable nickel metal hydride (Ni-MH) and lithium-ion (Li-ion)
batteries and related products for use in a variety of electronic
devices. The majority of Hong Kong Highpower's products are
distributed worldwide to markets in the United States, Europe, China,
Hong Kong, Southeast Asia and Taiwan. For more information, visit
http://www.haopengbattery.com.

To be added to the Company's email distribution for future news
releases, please send your request to HPJ@finprofiles.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within
the meaning of the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve known and
unknown risks, uncertainties and other factors that could cause the
actual results of Hong Kong Highpower Technology ("HPJ" or the
"Company") to differ materially from the results expressed or implied
by such statements. Accordingly, although the Company believes that
the expectations reflected in such forward-looking statements are
reasonable, there can be no assurance that such expectations will
prove to be correct. The Company has no obligation to update the
forward-looking information contained in this press release.

1. Source: AVICENNE Compilation research report, June 2007.

Media and Investor inquiries:
Financial Profiles, Inc.
Brandi Floberg/Casey Molda
310-277-4711
HPJ@finprofiles.com

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