China Energy Recovery Completes a New $3.3 Million Project for a Repeat Customer

SHANGHAI, China, Jan. 6 /PRNewswire-Asia/ — China Energy Recovery, Inc.
(OTC Bulletin Board: CGYV; “CER”), a leader in the waste heat energy recovery
sector of the industrial energy efficiency industry, announced today that it
has successfully completed an EPC (Engineering, Procurement and Construction)
project (the “Project”) for a new specialty sulfuric acid plant, operated by
Jiahua Chemical (“Jiahua”), in late December 2008. The Project is a showcase
of the customers’ recognition of CER’s strong engineering capability in
undertaking complex EPC projects for the main production facilities integrated
with waste heat recovery systems.

The Project has employed new processes and technological applications to
produce 35,000 tons of Analytical Reagent (“AR”) sulfuric acid and 37,000 tons
of liquid sulfur trioxide (“SO3”). The revenue associated with the Project
for CER amounts to roughly RMB22.8 million (approximately $3.3 million at the
average exchange rate of 2008).

China Energy Recovery’s CEO and Chairman of the Board, Mr. Qinghuan Wu,
stated, “We are very proud that Jiahua Chemical chose to work with us again.
This EPC project again demonstrates our customers’ trust and satisfaction of
our engineering capability which has brought to them high efficiency in both
manufacturing of main products and energy use while achieving environmental
protection goals.”

This is the second EPC project that was awarded by the same customer and
an add-on to Jiahua’s main sulfuric acid plant which has 400,000 tons of
annual production capacity and features an integrated waste heat recovery
system. CER completed the EPC project for the main plant and the waste heat
recovery system in 2004. With CER’s recovery system, the waste energy
recovered at the plant is converted into electricity with 8.2 MW of power
generation capacity. This has enabled Jiahua to achieve a high level of
energy efficiency and environmental protection, which can be quantified as (i)
annual saving of roughly 17,700 tons of coal (coal equivalent) that would
otherwise be required to produce the same amount of power and (ii) the
reduction of 47,100 tons of carbon dioxide emission each year.

What is Waste Heat Energy Recovery?

Industrial facilities 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 heat energy or electricity, dramatically lowering
energy costs. Energy recovery systems are also capable of capturing harmful
pollutants that would otherwise be released into the environment. It is
estimated that if energy currently wasted by all the U.S. industrial
facilities could be recovered, it could produce power equivalent to 20% of U.S.
electricity generation capacity 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 designing, manufacturing and installing
waste heat energy recovery systems which provide facilities with greater
energy efficiency. The company’s primary focus is 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: . 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 CER 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 orders and collect revenues therefrom. 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 filings with the SEC, including CER’s Current Report on
Form 8-K filed with the Securities and Exchange Commission on April 21, 2008.

    For more information, please contact:

     Sean Mahoney
     Tel:   +1-310-867-0670

    Investor Relations
     Jim Blackman
     Tel:   +1-713-256-0369


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