Two Amorphous Alloy Suppliers Help China Power to Expand Product Offering

China Power Equipment, Inc. ("China Power Equipment" or "China Power" or the "Company") (OTC Bulletin Board: CPQQ), the manufacturer of a new generation of energy saving electric transformers and transformer cores in the People's Republic of China, today reported that it is now taking orders for amorphous alloy cores that can be manufactured using an alloy from a domestic Chinese supplier.

Mr. Yongxing (Henry) Song, Chairman and Chief Executive Officer of China Power, said, "We are pleased to add another supplier for amorphous alloy, the primary raw material used in manufacturing our transformer cores.

"As the Chinese-made amorphous alloy enters the market, it may cause the market price of the alloy to decline, which could narrow the price difference between amorphous alloy transformers and traditional steel transformers. In addition, a lower price could accelerate the adoption of amorphous alloy transformers, especially since the Chinese government is encouraging greater energy efficiency and lower emissions. The result could be further increases in the demand for the more energy-efficient amorphous alloy core transformers.

"We believe that having two amorphous alloy suppliers will broaden our product offering and will give our customers a good choice of alternatives that will best fit their needs for transformer cores and transformers."

Several of China Power's customers have completed their testing of its amorphous alloy cores and transformers made with amorphous alloy from Beijing Advanced Technology & Science Materials Co., Ltd. ("AT&M"). They found that those trial products performed with very good characteristics and for some applications were also more cost-effective. As a result, China Power Equipment will offer several transformer core products using AT&M's alloy. China Power will continue, of course, to make amorphous alloy cores and transformers using the amorphous alloy that is sourced from Hitachi Metals Co., Ltd. China Power expects that Hitachi will to continue to be a major supplier to China Power.


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