-- Contract values of backlog orders amount to RMB223 million (US$32.7

million), up by 86% year-over-year, to be completed in the next 12

months

-- Backlog orders will potentially help save 370 thousand tons of coal and

reduce 1 million tons of carbon dioxide emissions annually

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 company has record backlog orders of RMB223 million in contract value (approximately US$32.7 million based on the exchange rate as of the date of this press release). This represents an 86% increase compared to the backlog orders of RMB120 million (approximately US$17.6 million) at the same time in 2008. These orders are expected to be completed in the next 12 months with the majority to be completed by the end of 2009.

"We're very pleased to achieve this milestone in such a challenging economy both in China and globally," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "It is encouraging to see that industrial firms are becoming more proactive to include energy recovery systems in their plans for new facility construction or retrofit projects of existing ones. Customers are seeing the tremendous economic benefits of such systems in addition to the need to achieve compliance to government mandates for environmental protection and energy efficiency. Though there are currently impacts on industrial manufacturers like us from the economic downturn and there will be quarterly fluctuations as a result of our order-based business model, our strong backlog orders provide us good visibility for our performance in the next 12 months, especially for the second half of that period. Our pipeline has also been expanding which is expected to further enhance our performance for the whole year of 2009 and beyond."

The energy recovery systems under these backlog orders, upon completion, are expected to generate nearly 174MW heat energy. This is equivalent to achieving a total annual saving of roughly 370,000 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and consequently the reduction of roughly 1,000,000 tons of carbon dioxide emissions from burning of that coal each year.

As the numbers presented above represent backlog orders estimated to be completed in the next 12 months until April 2010 based on contracts signed as of the press release date, the actual revenue realized through that date is subject to the completion of all these orders during the next 12-month period.