A Successful Showcase of Expansion Into the Coal Chemical Segment

Multi-million Dollar Energy Costs Can Be Potentially Saved Annually for the Repeat Customer

SHANGHAI, March 10 /PRNewswire-Asia/ -- China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; 'CER'), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced the completion of the order to make a series of waste heat recovery boilers for Jiangsu Sopo Chemical Group ('Sopo Group'), a repeat customer of CER. These waste heat recovery boilers are for Sopo Group's new methanol production facility to support its main acetic acid manufacturing plant. Sopo Group is a leading Chinese integrated chemical company and China's largest and world's third largest producer of acetic acid (glacial), one of the major basic chemicals for industrial uses.

The total contract value of the order amounts to RMB13.6 million (approximately US$2.0 million at the prevailing exchange rate on the date of release), among which RMB7.3 million (approximately US$1.1 million) were completed in 2008.

The new methanol facility has an annual production capacity of 600,000 tons. The series of waste heat recovery boilers that CER makes will altogether generate roughly a total of 200 tons of steam per hour from waste heat energy captured from methanol production. The steam will be reused in the production processes. The utilization of the steam generated could roughly translate into a 44 MW power generation capacity. Based on the steam to be utilized, it is expected to help achieve an annual saving of roughly 95,040 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and subsequently the reduction of roughly 252,800 tons of carbon dioxide emission each year.

'We are happy to see that our long-term customer, Sopo Group, is growing in the current difficult market environment,' commented Mr. Qinghuan Wu, CER's CEO, 'the successful completion of this order demonstrates that our company has the necessary capabilities to supply waste heat recovery systems to the coal chemical segment that has been identified as one of China's strategically focused fields to develop in the years to come.'

The numbers presented above are the contract value and include a 17% Value Added Tax and the retainage amount for product warranty purposes which is 5% of the contract value and will be recognized as deferred revenue. The numbers presented represent values based on current exchange rates.