Energy Recovery Leader China Energy Recovery Announces Two New Signed Contacts For Waste Heat Recovery Systems

LOS ANGELES, Calif. & SHANGHAI, China--(BUSINESS WIRE)--China Energy Recovery, Inc. (OTCBB:CGYV) ("China Energy Recovery" or “CER”) today announced two significant contracts for additional waste-heat recovery facilities – one in China and the other in Papua New Guinea – bringing the year-to-date systems orders to 36. These projects reflect the company’s growing position as the industry leader in waste-heat recovery systems while also demonstrating CER’s continued emergence into the international waste-heat recovery marketplace. The combined total value of the two contracts is nearly 47,000,000 (RMB), or more than $6.9 Million USD.

“These two projects again demonstrate China Energy Recovery’s superiority in our primary waste-heat recovery systems, and our strengthening foothold in the international market for heat recovery energy technology,” stated China Energy Recovery CEO, Mr. Qinghuan Wu. “While we continue to explore new applications for our technology, and we continue spreading our advanced systems into new regions, we’re seeing a steady pick-up in orders from existing and new customers that we believe will continue to build our business throughout 2008 and well through 2009.”

The two new systems are both waste-heat recovery systems for sulfuric acid plants and will be located in Yunnan Province, China and Papua New Guinea. The Yunnan project can generate both electricity and heat energy in the form of hot steam that is directly used by the manufacturing process while the Papua New Guinea project will primarily generate heat energy in the form of hot steam.

Both systems have a completion date targeted at late 2009 and will reduce carbon emissions from their facilities. The carbon reductions may create an additional revenue stream for CER at a later date.

“2008 is shaping up to be our biggest growth year for CER, ever, and our international exposure and sales efforts continue to look very positive,” continued Mr. Wu. “Our technology is finally earning a well-deserved reputation for being an energy-saving and environmentally friendly ‘win-win’ for heavy industries. And with the current economic and environmental difficulties upon all industries, we feel we’re in the right business at the optimal time. Our prospects for a very solid year and near-future are very positive.”

What is Energy Recovery?

Industrial facilities and power plants release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high pressure steam. Energy recovery is the process of recovering vast amounts of that wasted energy and converting it into usable electricity, dramatically lowering energy costs. Energy recovery systems are also capable of capturing the majority of carbon emissions and other harmful pollutants that would otherwise be released into the environment. It is estimated that energy recovery systems installed in U.S. industrial facilities could produce up to 20% of U.S. electricity needs without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.

About China Energy Recovery, Inc.

CER is an international leader in energy recovery systems, with a primary focus on the Chinese market. CER's technology captures industrial waste energy to produce low-cost electrical power, enabling industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate sellable emissions credits. CER has deployed its systems throughout China and in such international markets as: Egypt, Turkey, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers, including: chemical, petro-chemicals, refining (including Ethanol refining), coke processing, and the manufacture of paper, cement and steel. CER continues to invest in R&D and plans to build China's first state-of-the-art energy recovery system research and fabrication facility to allow it to meet the increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp. Information on CER's website does not comprise a part of this press release.

Forward-Looking Statement Disclaimer

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, and CER's ability to successfully complete construction of the projects in Malaysia and the Congo and to adapt its energy recovery systems for use in the biofuel industry. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's recent filings with the SEC, including CER's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 21, 2008.