-- Wuxi Zhenyu Chemical, the joint venture, is a 4-time repeat customer,      representing high customer satisfaction and recognition    -- Contract value amounts to US$0.73 million and the system will help      produce approximately 24 million kwh of electricity annually   

China Energy Recovery, Inc. (BULLETIN BOARD: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced that the company has won a contract to design and manufacture a waste heat recovery system for the new 300,000 ton annual capacity sulfuric acid plant of Wuxi Zhenyu Chemical, a joint venture between Marubeni, a Japanese Fortune Global 500 company, and Wuxi Sulfuric Acid, a leading sulfuric acid producer in Jiangsu Province. The contract value amounts to RMB4.98 million (approximately US$0.73 million).

"We are very pleased that as a long-term, valued customer, Wuxi Zhenyu Chemical, engaged us to supply the waste heat recovery system for them for the fourth time," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "We congratulate them on their continued and fast growth. This is a representation of customer satisfaction and recognition of our product quality and leadership in the waste heat recovery field. We shall continue to further develop our waste heat recovery technologies and enhance both our engineering and production capacities to meet the increasing market needs for our systems."

The waste heat recovery system for Wuxi Zhenyu Chemical is designed to generate 45 tons of high-quality steam per hour. Once connected to the turbines, the system will help produce approximately 24 million kwh electricity annually and much of the electricity generated will be sold to the grid, thus enabling the client to significantly reduce its energy costs. This project is estimated to achieve an annual saving of roughly 21,600 tons of coal (coal equivalent) and consequently the reduction of roughly 57,500 tons of carbon dioxide emission from the burning of that coal each year.

The contract value presented above includes a 17% value added tax ("VAT") and a 10% retainage for product warranty purpose. According to US GAAP, VAT and the retainage are excluded from the current period for revenue recognition purpose and the retainage will be recognized as deferred revenue. The numbers presented represent values based on current exchange rates. Changes in the currency exchange rates would result in a commensurate change in contract value.