Canada - Hanwei updates wind power business

Hanwei Energy Services Corp. today provided an update on its wind power business. The Company estimates that turbine production for 2008 will total approximately 40 turbines, based on its component delivery schedule. As previously reported, the Company has delivered 12 1.5MW turbines (four in Q1 2008, eight in Q2 2008), three sets of wind turbine blades and 30 towers (together in Q4 of 2007) under its initial contract with Daqing Deta Electric Co. Ltd. ("Deta").

Hanwei has completed an additional 8 turbines and 17 blades (5 and 2/3 sets) related to its initial contract for installation at Ruihao's wind farm and expects to deliver them in the fourth quarter of 2008. Nine of the twelve turbines and towers and the three sets of turbine blades delivered to date have been installed at Heilongjiang Ruihao Energy Technology Co., Ltd.'s ("Ruihao") wind farm in Heilongjiang province, China and connected to Ruihao's substation and the local electrical grid for calibration and field-testing.

The Company has commenced production of turbines under the new 200MW
contract with Ruihao, which was a component of its previously announced acquisition of Deta. Hanwei has integrated the Deta management team into its operations and is supplying equipment to Ruihao while awaiting final regulatory approval for the acquisition of Deta. Hanwei expects to complete and deliver an additional 20 turbines during the fourth quarter of 2008, for a total of 40 for all of 2008. Hanwei also expects to complete and deliver an additional 23 blades during the fourth quarter of 2008 for a total of approximately 40 blades (13 and 1/3 sets) for all of 2008.

To support the new 200MW order, Hanwei has invested approximately
$31 million in prepaid inventory to mitigate some of the delays caused by high demand for component parts throughout the wind power industry. Hanwei has been successful to date in accessing working capital through debt facilities established with China based banks and lenders to support the ongoing capital requirements of the wind power operations. To improve supply chain management, Hanwei has created a dedicated purchasing and logistics group, which has
successfully established supplier relationships with key China-based component and systems manufacturers. The group will manage all inventory procurement and coordinate key component deliveries.

Since establishing its wind power business in 2007, Hanwei has continuously improved its management, engineering, and production
capabilities. Through a number of key hires recruited from some of China's largest wind power and engineering firms, Hanwei has assembled an experienced management team that has successfully ramped up production capacity, improved supply chain management and established numerous quality and production controls. The wind segment now has 400 employees, including a production workforce of approximately 275 trained staff, and 46 management and engineering personnel.

Hanwei currently has 12 turbine assembly workstations in its 50,000
square meter production facility in Daqing. At full capacity, and subject to supply chain constraints and working capital, each station is capable of producing a maximum of three 1.5MW turbines per month, which would allow Hanwei to ramp-up production to a maximum capacity of approximately 400 turbines per year.

The Company has also established capacity to produce an average of one
wind turbine blade per day using three operating moulds. Two of the moulds utilize Aerodyn Energiesysteme GmbH technology, licensed by Hanwei, and one utilizes Chinese technology licensed by Hanwei, through the acquisition of Deta. Production capacity for wind turbine blades is expected to increase due to production rate improvements as the process is streamlined and the delivery and installation of three additional Aerodyne moulds over the next six months.

"The China market for wind power equipment was over 3000 MW or $3 billion in 2007 and showed strong growth in 2008. Even in the current global economic slow down we expect China's wind power market to remain strong due to continued growth in China's per capita energy consumption and Chinese government support, including targets for wind power installations, preferential tax policies and debt funding from policy driven state owned banks. After launching our wind power equipment business in mid-2007 Hanwei has recruited a strong management team, acquired technology licenses for turbines and blades and established a manufacturing plant with capacity to grow our business into 2009 and the future. We plan to grow into a leading
provider of wind power equipment in China, and to that end, we are working hard to expand our customer base and continually improve our technology."

About Hanwei Energy Services Corp.:
Hanwei Energy Services Corp. provides high value products and services
for the energy sector in China and the Asia region. Hanwei serves its major energy customers through manufacturing facilities in China, producing products for the oil, coal power and wind power industries. Hanwei is focusing on providing products and services that address the growing need for improved energy efficiency and environmental protection in China and the Asia region.