A-Power Energy Generation Systems Ltd. Designated to Supply Wind Turbines to a 600MW Wind Farm in West Texas

Thu Oct 29, 2009 12:00pm EDT

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A-Power Energy Generation Systems Ltd. Designated to Supply Wind Turbines to a
600MW Wind Farm in West Texas
China-US Wind Farm JV Plan Calls for 240 Units of 2.5MW Turbines to be
Purchased from A-Power

SHENYANG, China, Oct. 29 /PRNewswire-Asia-FirstCall/ -- A-Power Energy
Generation Systems Ltd. (Nasdaq: APWR) ("A-Power" or the "Company"), a leading
provider of distributed power generation ("DG") systems in China and a
fast-growing manufacturer of wind turbines, announced today that the Company
has been designated to supply wind turbines to a China-U.S. joint venture
project ("JV Project") to develop a 600MW wind farm in West Texas.
    At a joint press conference held today at 12 p.m. EDT, at the National
Press Club of Washington, D.C., it was announced that Shenyang Power Group
("SPG"), the U.S. Renewable Energy Group ("US-REG") and Cielo Wind Power LP
("Cielo Wind"), signed a joint venture framework agreement ("JV Agreement")
setting forth plans for developing the 600MW wind farm. The terms of the JV
Agreement include the JV Project's plans to sign a definitive purchase
agreement with A-Power related to the purchase of up to 240 units of 2.5MW
wind turbines. The JV Agreement includes a delivery schedule starting in March
2010, subject to SPG securing third-party financing, among other conditions.
A-Power currently has an annual production capacity for 1.1GW of wind turbines
at its 320,000-square-foot facilities in Shenyang. A-Power is a shareholder of
SPG.
    The JV Project, which when established will be 49% owned by SPG, with the
rest of the equity ownership held by US-REG and Cielo Wind jointly, is
expected to be one of the largest wind farms in the United States. Upon
completion, it is anticipated to generate enough electricity for 180,000 homes
in America. The JV Project is expected to cost in total approximately $1.5
billion, a portion of which is designated for wind turbine purchases, and its
establishment is subject to, among other things, further due diligence by the
parties, the securing of financing from commercial banks in China, and other
project development conditions.
    "A-Power welcomes the opportunity of participating in this high-profile
wind power project in the United States," said Mr. Jinxiang Lu, Chairman and
CEO of A-Power and CEO of SPG. "As both a supplier to the JV Project and an
equity-owner of SPG, A-Power will be able to export its wind turbines for the
first time and reduce its exposure to the intrinsic risks associated with such
a large-scale project. We like the tremendous opportunities in the United
States, which is the world's largest wind power country. We are cognizant of
the recent policy push by the Obama Administration in the renewable energy
sector, and a stabilizing financing environment for renewable energy projects.
And we are attracted to the track record of Cielo Wind, the largest privately
held wind power project development company in the Southwest United States,
with a 16% market share for wind power installation in Texas. In this JV
Project, and the sales we expect to make to the joint venture, all of
A-Power's previous investments -- in production scale, in foreign technology
licenses, and in alliance with other power plant service companies -- are
expected to come to fruition, and we look forward to entering into a sales
agreement with the JV Project and moving ahead with the production schedule as
set forth in today's JV Agreement."
    About A-Power
    A-Power Energy Generation Systems Ltd. ("A-Power"), through its
China-based operating subsidiaries, is the largest provider of distributed
power generation systems in China, focusing on energy-efficient and
environmentally friendly projects of 25MW to 400MW. In 2008, A-Power entered
the wind energy market and has built China's largest wind turbine
manufacturing facility, located in Shenyang, Liaoning Province, with
technologies licensed from German FUHRL?NDER AG and Denmark-based Norwin, and
a total annual production capacity of 1,125MW. In March 2009, A-Power entered
into an agreement to establish a Joint Venture partnership with GE Drivetrain
Technologies to produce wind turbine gearboxes in Shenyang. A-Power also has
strategic relationships with Tsinghua University in Beijing and the China
Academy of Sciences in Guangzhou to develop and commercialize other renewable
energy technologies. For more information, please visit
http://www.apowerenergy.com .
    Safe Harbor Statement
    This press release may contain forward-looking statements. Any such
statement is made within the 'safe harbor' provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," and other similar
statements. Statements that are not historical facts, including statements
relating to anticipated future earnings, margins, and other operating results,
future growth, construction plans and anticipated capacities, production
schedules and entry into expanded markets are forward-looking statements. Such
forward-looking statements, based upon the current beliefs and expectations of
our management, are subject to risks and uncertainties, which could cause
actual results to differ materially from the forward-looking statements,
including but not limited to, the risk that: inclement weather conditions
could adversely affect our operating results in particular quarters and/or
fiscal years; our limited operating history and recent entrance into new
markets may make it difficult for you to evaluate our business and future
prospects; the expected benefits of supply and partnership agreements may not
materialize to the extent expected or at all; we have yet to sign a definitive
purchase agreement with the JV Project and no assurance can be given that we
will sign such agreement; the establishment of the joint venture and JV
Project under the joint venture agreement between SPG, US-REG and Cielo Wind
is subject to various conditions, including further due diligence and securing
financing from third-parties, which due diligence may not be completed
satisfactorily, or which financing may not be successfully obtained, and the
parties to the JV Agreement may not proceed with establishing the joint
venture or with the JV Project; SPG may not be able to secure financing for
the JV Project; various government approvals may not be obtained to commence
the JV Project; we started manufacturing wind turbines in 2009 and our limited
history in this sector may make it difficult to meet delivery schedules under
any sales contracts we enter into with the JV Project; we may not be able to
source components to manufacturing the wind turbines, resulting in our
inability to deliver the expected amount of units called for by the joint
venture agreement; we may not be able to obtain proper customs approvals for
the export from China and import into the United States of our wind turbines;
as well as other relevant risks detailed in our filings with the Securities
and Exchange Commission, including those set forth in our annual report filed
on Form 20-F for the fiscal year ended December 31, 2009. The information set
forth herein should be read in light of such risks. We assume no obligation to
update the information contained in this press release, except as required
under applicable law.
    For more information, please contact:

     Mr. John S. Lin
     Chief Operating Officer
     A-Power Energy Generation Systems
     Email: john@apowerenergy.com

     Mr. Valentine Ding / Mr. Dixon Chen
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: valentine.ding@us.grayling.com
            dixon.chen@us.grayling.com

SOURCE  A-Power Energy Generation Systems Ltd.

Mr. John S. Lin, Chief Operating Officer of A-Power Energy Generation Systems,
john@apowerenergy.com; or Mr. Valentine Ding or Mr. Dixon Chen, Investor
Relations of Grayling, +1-646-284-9412, or valentine.ding@us.grayling.com or
dixon.chen@us.grayling.com, for APWR
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