A-Power Energy Generation Systems, Ltd.-Led Shenyang Power Group Signs MOU with Macau Natural Gas Co., Ltd. to Develop an Offshore LNG Project

Pursuant to the MOU, a project company will be set up to undertake the construction of the LNG terminals. An artificial island to be formed by land reclamation adjacent to Macau will be the site for the project, which involves a 49-foot water-depth shipment depot, the LNG receiving and re-gasification terminals, storage facilities and associated pipelines and facilities. The project will be an expansion of MNG's existing natural gas facilities and the total cost of the project is currently estimated to be $1.5 billion, according to the MOU.

Also pursuant to the MOU, after the construction of the LNG terminals, which is expected to take approximately 24 months, a 2,400MW natural gas power plant will be built at the same location. The details of the power plant are pending until further negotiation among the parties.

Lastly, pursuant to the MOU, subject to the finalization of the plan, the capacity of the LNG facilities is expected to be 3 million tons per year starting 2013 and 5 million tons per year in 2015.

The MOU is legally binding but may be terminated by mutual consent of all the parties.

"A-Power as the majority-owner of Shenyang Power is very pleased to be a participant in such a major clean energy project in Southern China," said Mr. Jinxiang Lu, A-Power's Chairman and CEO. "This offshore LNG complex has received avowed support from the government including the City of Shenyang and the Macau Special Administrative Region at the local level, as well as the National Development and Reform Commission in Beijing. Along with other members in the Shenyang Power alliance, we are excited to contribute our engineering expertise in cleantech to this very large-scale, and logistically complex project. With the government backing, we are hopeful that the final terms of the contract will be set out later this year and the construction phase could start sometime next year."

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 .

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