China Recycling Energy Corp. Announces New 10-Year Energy Efficiency Build Operate Transfer ('BOT') Contract with Shenmu County Jiujiang Trading Co., Ltd.

China Recycling Energy Corp. Announces New 10-Year Energy Efficiency Build
Operate Transfer ('BOT') Contract with Shenmu County Jiujiang Trading Co.,
Ltd.
-- $18.3 million top-line revenue to be recognized in Q3 2009

XI'AN, China, Nov. 1 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy
Corp. (OTC Bulletin Board: CREG) ('CREG' or 'the Company'), a fast-growing
industrial waste-to-energy solutions provider in China, today announced that
it has delivered to Shenmu County Jiujiang Trading Co., Ltd. ("Shenmu") a set
of 18-megawatt capacity power generating systems pursuant to a Cooperative
Contract on Coke-oven Gas Power Generation Project and a Gas Supply Contract
for Coke-oven Gas Power Generation Project. The 10-year Contracts provide that
the Company will recycle waste gas from Shenmu's 600,000 tons per year coke
production line to generate power, which will then be sold back to Shenmu for
use in production. Shenmu agrees to supply the coke-oven gas free of charge.
Power generation and delivery of power begin in October 2009.

Under the Contracts, Shenmu will pay to the Company "energy-saving service
fees" of approximately $473,000 per month for the life of the Contracts, as
well as such additional amount as may result from the supply of power to
Shenmu in excess of 10.80 million kilowatt hours per month at the rate of .30
yuan (approximately $.04) per kilowatt hour. The Company will subcontract a
third party operator at a cost of approximately $438,000 per year.

The Company expects to treat the Contracts as a sale-type lease. Based on the
accounting model CREG applies regarding sale-type leasing under US GAAP, the
Company expects to recognize approximately $18.3 million in revenue at
September 30, 2009 (the delivery date) with a related cost of goods sold of
$14.1 million. After the inception of the lease, CREG anticipates that it will
recognize a total amount of $38.4 million as interest income from this
sale-type lease over the 10-year term, on a monthly accumulative basis as it
receives the monthly installment payments from Shenmu.

The Company maintains the ownership of the project throughout the term of the
Contracts, including the already completed investment, design, equipment,
construction and installation as well as the operation and maintenance of the
project. CREG agrees to pay to Shenmu 50,000 yuan (about $7,300) a year to use
the land for the power station. At the end of the 10-year term, ownership of
the systems transfers to Shenmu at no additional charge.

"This is CREG's first project in the coking industry, one of the most energy
intensive sectors in China." said Mr. Guohua Ku, CEO of CREG. "This project is
expected to reduce annual coal consumption by 52,000 tons, equivalent of
130,000 tons of CO2 emissions. We are excited about the substantial growth in
our Company as we take on ever larger projects with waste gas-to-energy
solution."

About China Recycling Energy Corp.

China Recycling Energy Corp. ('CREG' or 'the Company') is based in Xi'an,
China and provides environmentally friendly waste-to-energy technologies to
recycle industrial byproducts for steel mills, cement factories and coke
plants in China. Byproducts include heat, steam, pressure, and exhaust to
generate large amounts of lower-cost electricity and reduce the need for
outside electrical sources. The Chinese government has adopted policies to
encourage the use of recycling technologies to optimize resource allocation
and reduce pollution. Currently, recycled energy represents only an estimated
1% of total energy consumption and this renewable energy resource is viewed as
a growth market due to intensified environmental concerns and rising energy
costs as the Chinese economy continues to expand. The management and
engineering teams have over 20 years of experience in industrial energy
recovery in China.

For more information about CREG, please visit http://www.creg-cn.com.

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating
to the business of China Recycling Energy Corp. and its subsidiary companies.
All statements, other than statements of historical fact included herein are
'forward-looking statements.' These forward-looking statements are often
identified by the use of forward-looking terminology such as 'believes,'
'expects' or similar expressions, involve known and unknown risks and
uncertainties. Although the Company believes that the expectations reflected
in these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may prove to be
incorrect. Investors should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. The
Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of factors,
including those discussed in the Company's periodic reports that are filed
with the Securities and Exchange Commission and available on the SEC's website
at http://www.sec.gov. All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking statements.

In China:
Mr. Leo Wu
Investor Relations
China Recycling Energy Corp.
Email: tch@creg-cn.com

In USA:
Mr. Howard Gostfrand
American Capital Ventures, Inc.
Email: hg@amcapventures.com

SOURCE China Recycling Energy Corp.

China: Mr. Leo Wu, Investor Relations of China Recycling Energy Corp.,
tch@creg-cn.com; USA: Mr. Howard Gostfrand of American Capital Ventures, Inc.,
hg@amcapventures.com, for China Recycling Energy Corp.