• Waste heat energy recovery system with a contract value of approximately US $3.2 million is completed to support new facility

China Energy Recovery, Inc. (OTCBB:CGYV) ("China Energy Recovery" or "CER"), a leader in the waste heat energy recovery sector of the alternative energy industry, today announced the completion of another waste heat energy recovery system for Two Lions (Zhangjiagang) Fine Chemical Co., Ltd. (“Two Lions”). The waste heat recovery system is intended for Two Lions' new sulfuric acid facility located in Jiangsu, China which is expected to have an annual output capacity of one million tons and electric power generation of 50 MW utilizing the recovered waste heat energy. The contract value of the system is RMB21.8 million (approximately US $3.2 million on the date of this press release). Two Lions' new plant is expected to come online before the end of 2008.

This is the second waste heat energy recovery system CER has provided to Two Lions. CER provided the system and detailed engineering design services for Two Lions' first one million ton annual capacity sulfuric acid facility completed in 2005. As previously announced, Two Lions was able to attain a payback period of less than two years for the first waste heat energy recovery system from energy cost savings resulting from the system. Additionally, as previously announced, Two Lions was approved to sell carbon credits with an estimated annual value of more than US$2.5 million resulting from the first waste heat energy recovery system.

“We at China Energy Recovery are very pleased with the success we continue to enjoy with our client, Two Lions,” stated Chairman of the Board and CEO of China Energy Recovery, Mr. Qinghuan Wu. “We continue to do business with this impressive company and together have been very pleased with the joint cooperation and continued improvements we’re making together. We look forward to many more successful projects and to the new facility going online around the end of this year which we expect will demonstrate the improvements we continue to make in our systems.”

What is Waste Heat Energy Recovery?

Industrial facilities and power plants release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering vast amounts of that wasted energy and converting it into usable electricity, dramatically lowering energy costs.