- Integrate Local Resources -

- Aggregate Bargaining Power for DG Projects -

- Amplify Local DG Construction & Engineering Prowess -

- Leverage Turn-Key Solutions for both Domestic & Overseas DG Contracts -

- Shenyang Power Group Inauguration Ceremony Scheduled for Wednesday, May 20, 2009, in Shenyang -

SHENYANG, China, May 14 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) ('A-Power' or 'the Company'), a leading provider of distributed power generation ('DG') systems in China and a fast-growing manufacturer of wind turbines, today announced that its wholly owned subsidiary, Liaoning Gaoke Energy Group ('Gaoke'), is leading a government-supported initiative to build a local DG industry alliance, named Shenyang Power Group ('Shenyang Power'), to be joined by other brand-name local power industry conglomerates. A ceremony to inaugurate the formation of Shenyang Power is scheduled for Wednesday, May 20, 2009, starting at 9:30am Beijing time, in the City of Shenyang. Expected attendees include the Communist Party Secretary of Shenyang, the Mayor and Deputy Mayor of Shenyang, representatives from local power industry companies that are expected to participate in the alliance, as well as A-Power's own senior management team.

The Shenyang Power alliance will have as its CEO Mr. Jinxiang Lu, A-Power's Chairman and CEO, and Gaoke as the lead investor and majority stakeholder. The Shenyang government will fund the alliance through subsidies and provide preferential bank loan terms for any future DG projects undertaken by Shenyang Power. The ultimate goal for Shenyang Power is to create economies of scale by aggregating the potentials of power industry companies, talented individuals as well as natural resources in the local area. The advantages of such an alliance will be most salient in 'Total-Responsibility' contracts, which entail the financing, design, procurement, manufacturing, installation, test and maintenance of large-scale, technologically advanced and managerially sophisticated electricity-generation systems both within China and overseas.

In addition to Gaoke, the founding members include Northern Heavy Industry Group (comprising Shenyang Mining Machinery Co. and Shenyang Heavy Machinery Co.), Shenyang Blower Group, Shenyang Boiler Manufacturing Co., Ltd., Liaoning Electricity Design & Planning Institute, Liaoning Construction & Installation Group Co., Ltd., Liaoning International Construction Engineering Group and three major power system manufacturers in Harbin. This collection of firms is a balanced mix of state-owned and non-state-owned enterprises, and their expertise spread across power-system manufacturing, construction, design, accessories, etc.

'A-Power is the proud conceiver and co-planner of the Shenyang Power alliance, and it is very exciting for us to spearhead such an initiative with strong government support,' said Mr. Lu. 'With Shenyang Power, whose total is greater than sum of parts, we expect to raise the bar of bidding, winning and executing large-scale DG contracts in China and overseas. The City of Shenyang has always enjoyed abundant natural resources and engineering talent, and it has historically been a heavy-industry capital for China. A-Power, with its six years of history in the DG business, is very pleased to build up Shenyang Power with other local power industry giants. By leveraging the alliance's manufacturing expertise, aggregating our bargaining power and developing turn-key solutions for utilities clients, we are confident Shenyang Power will serve as a platform to satisfy the growing needs of DG systems in China and beyond.'

About A-Power

A-Power Energy Generation Systems Ltd. ('A-Power'), through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25MW to 400MW. In 2008, A-Power entered the wind energy market and has built China's largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with technologies licensed from German FUHRLANDER AG and Denmark-based Norwin, and a total annual production capacity of 1,125MW. In March 2009, A-Power entered into an agreement to establish a Joint Venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang. A-Power also has strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to develop and commercialize other renewable energy technologies. For more information, please visit http://www.apowerenergy.com .

Safe Harbor Statement

This press release may contain forward-looking statements. Any such statement is made within the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' and other similar statements. Statements that are not historical facts, including statements relating to anticipated future earnings, margins, and other operating results, future growth, construction plans and anticipated capacities, production schedules and entry into expanded markets are forward-looking statements. Such forward-looking statements, based upon the current beliefs and expectations of our management, are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements, including but not limited to, the risk that: inclement weather conditions could adversely affect our operating results in particular quarters and/or fiscal years; we may experience construction and development delays on our projects which could adversely affect our financial condition and operating results; our limited operating history and recent entrance into new markets may make it difficult for you to evaluate our business and future prospects; the expected benefits of supply and partnership agreements may not materialize to the extent expected or at all; we expect to rely increasingly on our proprietary products and systems and on technology developed by our licensors and partners, and if we or our licensors or partners become involved in an intellectual property dispute, we may be forced to spend considerable resources resolving such dispute; a decrease in the rate of growth of China's industry and economy may lead to a decrease in our revenues because industrial companies in China are our principal source of revenues, as well as other relevant risks detailed in our filings with the Securities and Exchange Commission, including those set forth in our annual report filed on Form 20-F for the fiscal year ended December 31, 2007. The information set forth herein should be read in light of such risks. We assume no obligation to update the information contained in this press release, except as required under applicable law.

    Fore more information, please contact:

     John S. Lin
     Chief Strategy Officer
     A-Power Energy Generation Systems
     Email: john@apowerenergy.com

     Valentine Ding / Dixon Chen
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: valentine.ding@us.grayling.com
            dixon.chen@us.grayling.com

SOURCE A-Power Energy Generation Systems, Ltd.

Source: PR Newswire (May 14, 2009 - 9:46 AM EDT)

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