SmartHeat Inc. Receives Initial $1.2 Million Energy Savings Equipment Supply Contract from Chinese Municipality under China's $580 Billion Infrastructure Stimulus Plan
Monday February 2, 6:55 am ET
NEW YORK, Feb. 2 /PRNewswire-Asia/ -- SmartHeat Inc. (Nasdaq: HEAT - News), (website: www.smartheatinc.com ), a market leader in China's clean technology energy savings industry, today announced the signing of a $1.2 million equipment supply contract with Uda Heat Power Company located in Inner Mongolia. This region is one of China's major coal production areas and is heavily polluted due to coal burning.
SmartHeat will deliver to the client 16 Plate Heat Exchange Units by the end of February. Such energy saving equipment significantly improves heat utilization rates in district heating networks which are a major contributing factor in greenhouse gas emissions and pollution in a city.
This new contract represents the initial order that SmartHeat has received under the Chinese government's $586 billion economic stimulus plan. The stimulus package announced in China in November 2008 designated approximately $58 billion in the funding of rural and urban infrastructure and energy efficiency projects.
SmartHeat anticipates additional orders from various municipal governments in China as they continue to receive government funding allocated to energy efficiency projects.
James Wang, Chief Executive Officer of SmartHeat, commented: "SmartHeat's energy savings products help cities significantly reduce heat energy costs and heating related pollution. This supply contract with the local municipality which is funded under the national economic stimulus plan attests to the expansion of our markets beyond large cities - the new growth areas where SmartHeat is well positioned to benefit from in 2009 and beyond."
About SmartHeat Inc.
SmartHeat Inc. is a US company with its primary operations in China. SmartHeat is a market leader in China's clean technology, energy savings industry. SmartHeat manufactures plate heat exchangers and compact plate heat exchanger units -- the technology that helps to capture and recycle waste heat thus reducing fossil fuel related costs and pollution. SmartHeat's products and technology have broad residential and industrial applications. China's heat transfer market is currently estimated at approximately $2.4 billion with double-digit annual growth according to China Heating Association. www.smartheatinc.com
Safe Harbor Statement
All statements in this press release that are not historical are forward- looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. SmartHeat's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect SmartHeat's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in SmartHeat's filings with the Securities and Exchange Commission.