Technology Stabilizes Electrical Current and Voltage

    HONG KONG, Sept. 9 /Xinhua-PRNewswire/ -- China Energy Savings Technology,
Inc. (OTC Bulletin Board: CESV) today issued comments on the impact the energy
crisis in China is having on factories.
    Mr. Lee Kam Man, CEO of China Energy Savings said, "No matter how you
slice it China will continue to grow.  2.04 million cars were sold in China
last year, nearly twice the number sold in 2002, 112 million new telephone
subscribers got phone service for the first time in 2003.  Many of these
products, and products like these are made in China; in our factories.  Demand
for these products is massive, and that means the electricity consumed by
Chinese factories is also massive."
    These numbers are indicative of the growth and the demand for growth in
China.
    "We are positioned to be a real part of this growth because our solutions
are what allow these factories to operate at maximum capacity.  Our technology
is currently saving the Chinese government millions of Kilowatts each year and
hence easing the stress of electricity shortage.  Our contributions in energy
savings in China have been recognized by the Chinese government and we are
literally helping companies and municipalities grow and prosper through energy
conservation," said Mr. Lee.
    Because of restricted power supply, some workers have three-day work weeks.
Some companies are losing orders, falling behind on backorders, and in general
struggling at times because of this energy crisis.  Many of China's factory
owners in the nation's power-hungry regions are suffering from the same
problem during this hot summer.
    Statistics released by the State Electricity Regulatory Commission (SERC)
in China indicate more than two-thirds of the nation's provinces, mainly in
eastern and southern China, are suffering from power shortage, with east
China's Zhejiang Province the most affected area.
    So far, the National Development and Reform Commission (NDRC), has
increased the electricity price in the four regional power grids -- south
China, east China, central China and north China, by an average of US$0.27 per
kilowatt hour to ease the shortage.
    "This is where our technology has resulted in huge dividends, support by
the government and the society, as well as the excess demand of our products,"
said Mr. Ian Cheng, Chief Executive Officer of Shenzhen Dicken Energy Saving
Group.  "Our customers are saving, on average, between 28% and 34% on their
electric bills.  These savings are usually more than the rate hikes.  Most of
our customers, in the aggregate, are literally saving millions of dollars per
year on their electric bills.  The bottom line is that our products work; they
save energy."
    The nation is expanding investment in power plant construction as a way to
tackle the shortage.  Power plants with a total installed capacity of more
than 80 million kilowatts have been approved since mid-2002, and those with a
further 10 million kilowatts of capacity are waiting for approval, according
to NDRC.  Nonetheless, the ease of China's energy crisis can only be seen
gradually after the completion of these power plants if constructing power
plants is the only solution pursued by the government.
    "Building power plants is a necessity in China.  We're simply growing
larger and faster than our current energy infrastructure can support,"
continued Mr. Cheng.  "However, if that's all we do to address our energy
crisis, we will have missed the greatest opportunity of all: to grow through
energy conservation.  It is critical for us as a nation and as a people to
grow responsibly.  Our products are a responsible choice.  Energy savings is
the fastest solution with a low cost to start at this stage.  Aside from
helping the factories, we also help government enterprises and private
enterprises in saving energy like with government street lamps, chained and
large-scale supermarkets, who then save their overheads and costs," concluded
Mr. Cheng.

    About China Energy Savings Technology
    The company is a holding company that owns 50% of Starway Management
Limited whose subsidiaries are engaged in the manufacturing and sales of
advanced technology energy-saving products in the People's Republic of China
(PRC).  According to test reports by various PRC authorities including
National Center of Supervision & Inspection on Electric Light Source Quality
(Shanghai) issued in September 2002 and Shenzhen Academy of Metrology &
Quality Inspection issued in December 2002, the energy saving products of
Starway's subsidiaries may provide energy saving rates ranging from
approximately 25% to 45%.  The energy saving projects conducted by Starway's
subsidiaries mostly relate to public or street lighting systems, government
administration units, shopping malls, supermarkets, restaurants, factories and
oil fields, etc.  There are small and large-scaled projects: the small-scaled
projects relate to restaurants, shops and small arcades through the sale of
equipment, and the large-scaled projects relate to large shopping malls,
supermarkets, factories and public bodies through the provision and
installation of equipment over a term usually extended for years.

    Safe Harbor Statement
    As a cautionary note to investors, certain matters discussed in this press
release may be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.  Such matters involve risks and
uncertainties that may cause actual results to differ materially, including
the following: changes in economic conditions; general competitive factors;
the Company's ability to execute its business model and strategic plans; and
the risks described from time to time in the Company's SEC filings.

    For more information, please contact:

     John Roskelley, President,
     First Global Media
     Tel:    +1-480-902-3110

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