China Energy Recovery Announces Start of Operations of a Key EPC Project with Built-in Waste Heat Recovery System Resulting in 3MW Power Generating Capacity

SHANGHAI, China, Jan. 13 /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 a
new sulfuric acid plant (the “Plant”) that CER built under the EPC
(Engineering, Procurement and Construction) model (the “Project”) for Hunan
Yongli Chemical (“Yongli”) was commissioned and has been operating
successfully since December 28, 2008. Yongli, located in Hunan province, China,
is a key chemical subsidiary of China National Salt Industry Corporation, the
largest salt company in Asia. The Project demonstrates that CER has
successfully established a strong presence in the EPC market in recent years.

The Plant is designed to produce 200,000 tons of sulfuric acid a year and
generate 30 tons of steam per hour from waste heat energy captured during
production. The steam will partly be used to generate electricity with 3MW
power generation capacity and the rest will be returned back into the
production process and utilized directly. The utilization of the remaining
steam can be translated into another 3MW power generation capacity. This EPC
project has enabled Yongli to execute its strategy to expand production
capacity while improving energy efficiency and meeting environmental
requirements. The new plant is expected to achieve an annual savings of
roughly 13,000 tons of coal (coal equivalent), which would otherwise be
required to produce the same amount of power, and the reduction of roughly
34,000 tons of carbon dioxide emission each year.

The successful startup of operations is also a good recognition of CER’s
strong engineering capability to carry out EPC projects for new chemical
plants and integrate energy recovery technology into the plants so as to help
the industrial customers improve energy efficiency and reduce pollution. At
the Startup Ceremony, Mr. Zhenrong Lu, the General Manager of Yongli, praised
CER for making the Project a success, which has laid a solid foundation for
future business opportunities between the two companies.

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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