-- Contract value amounts to $4.47 million   -- The new plant will have a designed electricity generation capacity of      3MW   -- The built-in waste heat recovery system is expected to reduce 33,000      tons of CO2 emission 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 new EPC (Engineering, Procurement and Construction) contract to construct a sulfuric acid plant with built-in waste heat recovery system for Tianjin Qinfa Chemical ("Qinfa"), a subsidiary of Tianjin Bohai Chemical Group, a leading chemical producer and one of the 200 Largest Companies in China. The total contract value amounts to RMB 30.5 million (approximately $4.47 million).

The new plant will be designed to produce 200,000 tons of sulfuric acid annually and generate 29 tons of steam per hour from waste heat energy captured during production. Part of the steam will be used to generate electricity, with a 3MW generation capacity, and the rest will be utilized directly. The utilization of the remaining steam can be translated into roughly another 2.8MW worth of power generation capacity.

This EPC project will enable Qinfa to execute its strategy to expand its production capacity while improving energy efficiency, thus reducing energy costs, and meeting environmental requirements. It is expected to be completed around next May. With the built-in waste heat recovery system, the new plant is expected to achieve an annual saving of roughly 12,500 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and the reduction of roughly 33,000 tons of carbon dioxide emissions each year.

"This is a good example of the recent developments in Chinese industries as a result of China's economic stimulus package since late last year," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "We have seen that industrial companies in China are resuming their expansion plans and at the same time are paying more attention to energy efficiency and environmental issues in order to achieve sustained growth. We are also glad to see that more and more customers have recognized our strong engineering capabilities and been willing to engage us to undertake EPC projects for them. This is expected to be a growth area for the company in the years to come."

The contract value presented above includes a 17% value added tax ("VAT") and a 2% retainage for product warranty purposes.