A-Power Energy Generation Systems, Ltd.-Led Shenyang Power Group Signs MOU with Macau...

A-Power Energy Generation Systems, Ltd.-Led Shenyang Power Group Signs MOU
with Macau Natural Gas Co., Ltd. to Develop an Offshore LNG Project

SHENYANG, China, July 10 /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, today announced that Shenyang
Power Group Co., Ltd. ("Shenyang Power"), A-Power's majority-owned local DG
industry alliance, has signed a Memorandum of Understanding (MOU) with Macau
Natural Gas Co., Ltd. ("MNG") to construct an offshore liquefied natural gas
("LNG") complex to import, store and re-gasify LNG and to distribute natural
gas to Macau and elsewhere.
Pursuant to the MOU, a project company will be set up to undertake the
construction of the LNG terminals. An artificial island to be formed by land
reclamation adjacent to Macau will be the site for the project, which involves
a 49-foot water-depth shipment depot, the LNG receiving and re-gasification
terminals, storage facilities and associated pipelines and facilities. The
project will be an expansion of MNG's existing natural gas facilities and the
total cost of the project is currently estimated to be $1.5 billion, according
to the MOU.
Also pursuant to the MOU, after the construction of the LNG terminals,
which is expected to take approximately 24 months, a 2,400MW natural gas power
plant will be built at the same location. The details of the power plant are
pending until further negotiation among the parties.
Lastly, pursuant to the MOU, subject to the finalization of the plan, the
capacity of the LNG facilities is expected to be 3 million tons per year
starting 2013 and 5 million tons per year in 2015.
The MOU is legally binding but may be terminated by mutual consent of all
the parties.
"A-Power as the majority-owner of Shenyang Power is very pleased to be a
participant in such a major clean energy project in Southern China," said Mr.
Jinxiang Lu, A-Power's Chairman and CEO. "This offshore LNG complex has
received avowed support from the government including the City of Shenyang and
the Macau Special Administrative Region at the local level, as well as the
National Development and Reform Commission in Beijing. Along with other
members in the Shenyang Power alliance, we are excited to contribute our
engineering expertise in cleantech to this very large-scale, and logistically
complex project. With the government backing, we are hopeful that the final
terms of the contract will be set out later this year and the construction
phase could start sometime next year."
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 FUHRLANDER 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 risks that: Our expansion of our business
outside of China will subject us to risks inherent in conducting business
internationally and may not be successful; increases in the price of raw
materials and labor may increase our cost of sales and reduce our earnings; we
may experience construction and development delays on our projects which could
adversely affect our financial condition and operating results; if we do not
manage our growth successfully, our growth and opportunity to maintain and
increase profitability may be hindered or impeded, 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, 2008. 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, Ltd.
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, A-Power Energy Generation Systems,
Ltd., john@apowerenergy.com; or Mr. Valentine Ding & Mr. Dixon Chen, Investor
Relations, Grayling, +1-646-284-9412, or valentine.ding@us.grayling.com &
dixon.chen@us.grayling.com