XI'AN, China, March 19 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that the Company's common stock will be listed on the NASDAQ Global Market and begin trading on Monday, March 22, 2010. The Company's sticker symbol will remain "CREG".

Mr. Guohua Ku, Chairman and CEO of CREG, commented, "By completing the listing with NASDAQ, we have reached a significant milestone in our Company's history. On behalf of the entire CREG organization, I want to thank everyone involved in making the listing on NASDAQ a reality. We are honored that the listing committee has approved our application, recognized our commitment to growth and believes in the strength and future of CREG." Mr. Ku concluded, "We expect the new listing on NASDAQ will provide greater exposure and opportunities for CREG and its shareholders."

About NASDAQ OMX

The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with approximately 3,700 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com . *Please follow NASDAQ OMX on Facebook ( and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Mr. Chanson was also appointed by the Board as a member of its Compensation Committee and as a member of its Corporate Governance and Nominating Committee. In connection with the appointment of Mr. Chanson to the Compensation Committee, Mr. Timothy Driscoll resigned his position as a member of the Compensation Committee and was appointed as a member of the Audit Committee.

Mr. Chanson has served as the Chairman of Calventis SA, Switzerland since 2009 and the Chairman of Samba Minerals Ltd, Australia since 2008. He previously served as the Chairman and chief executive officer of AmbioCare Holding from 2001 to 2007, a director of Plant Health Care plc in the U.K. from 2004 through 2008, a director of Plant Health Care, Inc. in the U.S. from 1995 through 2004, and a director of EHC Viridian Ltd. in the U.K. from 1999 to 2001. Mr. Chanson received both his Doctorate and Master in Law degrees from the University of Zurich and his Bachelor Degree in Natural Sciences (Physics & Chemistry) with Latin from Kantons-schule Zurich' in Zurich, Switzerland.

The seven-member board is now comprised of four independent members including Mr. Sean Shao, Mr. Julian Ha, Mr. Timothy Driscoll, and Mr. Robert Chanson. Mr. Guohua Ku, Chairman and CEO of CREG, commented, "On behalf of China Recycling Energy, we emphatically welcome Mr. Chanson to the Board. He brings years of executive expertise and sound judgment. Together, we look forward to working collaboratively to further improve our corporate governance and diversify our board."

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Tel:   +86-29-8765-1097
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Tel:   +1-305-918-7000
     Email: hg@amcapventures.com

XI'AN, China, Jan. 15 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced its preliminarily financial results for the fourth quarter and full year 2009.

Revenues for the fourth quarter of 2009 are expected to be in the range of $11-12 million, versus $12.3 million in the fourth quarter of 2008. Net income for the fourth quarter of 2009 is expected to be in the range of $2.5-3.0 million, or $0.05-0.06 per diluted share, an approximately 20% increase from the prior year's fourth quarter results of $2.3 million, or $0.04 per diluted share.

For the year ended December 31, 2009, revenues are expected to be in the range of $45-46 million, a more than 130% increase from full year 2008 results of $19.22 million. Full year 2009 net income is expected to be in the range of $10.5-11 million, or $0.22 to $0.23 diluted earnings per share, which is an approximately $13 million increase from full year 2008's net loss of $2.22 million, or $(0.07) diluted earnings per share.

The Company had previously indicated it expected full year 2009 revenues in the range of $33 million to $36 million, with net income, excluding non- cash charges, of approximately $8 million. The company is expected to exceed its previous full year guidance by approximately $10 million or 30% in revenue and approximately $3 million or 37.5% in net income.

Mr. Guohua Ku, Chairman and CEO of CREG, commented, "During the course of 2009, CREG is able to delivery on all of its goals and expectation for shareholder values and customers. In fact, we were able to significantly beat our financial projections by over 30% for the year. As we enter 2010, we expect to be able to continue strong development momentum and achieve sustained growth with the platform that we are continuing building up in China's tremendous energy inefficiency and the strong government incentives that clean tech sector is receiving. Our Build-Operate-Turn Key ("BOT") model allows us significant visibility based on previously executed contracts and revenue generated from electricity sales in relation to those contracts."

The Company anticipates filing its full year 2009 results and will issue its 2010 guidance by March 31, 2009.

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Tel:   +86-29-8765-1097
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Tel:   +1-305-918-7000
     Email: hg@amcapventures.com

The Erdos Project having a combined capacity of 70 MW with the potential to grow to 120-MW power capacity was originally announced on April 6, 2009. Under the agreement with Erdos Metallurgy, CREG will recycle waste heat from Erdos Metallurgy's metal refining plants to generate power and steam, which will then be sold back to Erdos Metallurgy for 20 years. On December 8, 2009, the Company announced it had successfully raised capital to support the construction and operation of Erdos Project Phase II and Phase III. Phase II will combine three 9-MW units for a total 27-MW power capacity, while Phase III will include one unit with 25-MW capacity.

Mr. Guohua Ku, Chairman and CEO of CREG, commented, "The planned rollout of one of our largest projects is on schedule, with completion of the first phase expected this quarter. Erdos is already benefiting from their recycled waste to energy with both reduced power rates and significantly improved environmental benefits."

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:

    China Recycling Energy Corp.
     Mr. Leo Wu
     Investor Relations
     Tel:   +86-29-8765-1097
     Email: tch@creg-cn.com

    In USA:

    American Capital Ventures, Inc.
     Mr. Howard Gostfrand
     Tel:   +1-305-918-7000
     Email: hg@amcapventures.com

The capital raise marked the completion of the first expansion of the Low Carbon Fortune-Energy Recycling No. 1 Collective Capital Trust Plan ("First Expansion of the Plan") by Beijing International Trust Co., Ltd. ("Beijing Trust") as announced in a press release issued by China Recycling Energy Corporation on December 8, 2009.

Beijing Trust raised 25,000,000 yuan (approximately US$ 3.68 million) through the sale of 25,000,000 trust units sold at 1 yuan per unit which included 20,000,000 category A1 preferred trust units (approximately US$ 2.94 million) and 5,000,000 category B2 secondary trust units (approximately US$ 0.74 million). The B2 units have been purchased by Xi'an TCH.

All amounts raised under the first expansion are to be loaned to Erdos TCH Energy Saving Development Co., Ltd ("Erdos TCH"), a joint venture between Xi'an TCH Energy Technology Co., Ltd. ("Xi'an TCH"), a subsidiary of the Company and Erdos Metallurgy Co., Ltd. The loan is a part of the Capital Trust Loan Agreement (the "Agreement") entered into by Erdos TCH and Beijing Trust on November 19, 2009, and it took effect on December 3, 2009. Under the Agreement, Beijing Trust will lend the capital to Erdos TCH for its waste heat power generation project phase II and phase III construction and operation, through which Erdos TCH will recycle heat from groups of furnaces of Erdos Metallurgy's metal refining plants to generate power and steam, which will then be sold back to Erdos Metallurgy.

Mr. Guohua Ku, Chairman and CEO of CREG, commented, "We are very pleased to have completed the first expansion of the Beijing Trust Agreement with this additional successful capital raise of US $3.68 Million. This financing arrangement will allow us to continue the planned rollout of additional projects with Erdos."

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain ""forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements". These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Tel:   +86-29-8765-1097
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Tel:   +1-305-918-7000
     Email: hg@amcapventures.com

The capital was raised through the formation of the Low Carbon Fortune-Energy Recycling No. 1 Collective Capital Trust Plan ("Plan") by Beijing International Trust Co., Ltd. ("Beijing Trust") on December 3, 2009. All amounts raised under the Plan are to be loaned to Erdos TCH Energy Saving Development Co., Ltd ("Erdos TCH"), a joint venture of Xi'an TCH Energy Technology Co., Ltd. ("Xi'an TCH"), a subsidiary of the Company, and Erdos Metallurgy Co., Ltd. ("Erdos Metallurgy"), based upon the Capital Trust Loan Agreement (the "Agreement") entered into by Erdos TCH and Beijing Trust on November 19, 2009.

Beijing Trust will lend the money to Erdos TCH for its waste heat power generation project phase II and phase III construction and operation, through which Erdos TCH will recycle heat from groups of furnaces of Erdos Metallurgy's metal refining plants to generate power and steam, which will then be sold back to Erdos Metallurgy.

"We are very pleased to have successfully raised the capital needed to continue progress on the Erdos TCH project without any dilution to our shareholders," Mr. Guohua Ku, Chairman and CEO of CREG, said. "This financing will ensure our continued strong growth in revenue and earnings while demonstrating our responsible and innovative management of investor capital."

The Plan includes 145,500,000 category A preferred trust units (approximately US$ 21.4 million) (category A1 preferred trust 12,450,000 units (approximately US$ 1.8 million), category A2 preferred trust 15,000,000 units (approximately US$ 2.2 million), category A3 preferred trust 118,050,000 units (approximately US$ 17.4 million)); and 36,380,000 category B secondary trust units (approximately US$ 5.35 million) (category B1 secondary trust 9,100,000 units, approximately US$ 1.34 million and category B2 secondary trust 27,280,000 units, approximately US$ 4.01 million). The B1 units are purchased by members of management of Erdos TCH and the B2 units are purchased by Xi'an TCH. Under the Agreement, the annual base interest rate is 9.94% for A1 preferred trust fund units with a term of two years, 11% for A2 preferred trust fund units with a term of three years, 12.05% for A3 preferred trust fund units and 8.35% for the category B secondary trust fund units, each with a term of four years.

Besides the base interest rate, Erdos TCH agrees to share the benefits from Clean Development Mechanism ("CDM") under the Kyoto Protocol equally with Beijing Trust during the term of the loan, as well as to pay a management incentive benefit to be calculated by a formula tied to Erdos TCH's net profit and average registered capital of the fiscal year prior to the maturity date of the loan. Under the formula the management incentive benefit will be paid at the end of Year 4 and can range between 0% and 100% of the net profit of Erdos TCH in the fiscal year prior to the maturity date of the loan depending upon the amount of average contributed capital of Erdos TCH at the time of measurement.

Erdos TCH has agreed to provide a lien on its equipment, assets and accounts receivable to guarantee the loans under the Agreement. Xi'an TCH and Mr. Guohua Ku also will provide unconditional and irrevocable joint liability guarantees to Beijing Trust for Erdos TCH's performance under the Agreement. Erdos Metallurgy will provide a commitment letter on minimum power purchase from Edros TCH.

On December 4, 2009, Beijing Trust also announced the first expansion of the Plan, to raise up to 30,000,000 additional units at 1 yuan per unit (approximately US$ 4.4 million totally) from December 7, 2009 to December 15, 2009. The money, if raised, will also be lent to Erdos TCH under the Agreement.

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Tel:   +86-29-8765-1097
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Tel:   +1-305-918-7000

XI'AN, China, Nov. 16 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, announced on November 16, 2009 its unaudited financial results for the third quarter of 2009.

   Highlights

    For the three months ended September 30, 2009:
    -- Revenue grew by 333% to $18.4 million in the three months ended
       September 30, 2009 from $4.3 million in the three months ended
       September 30, 2008.
    -- Income from operations grew by 468% to $4.7 million in the three months
       ended September 30, 2009 from $0.8 million in the three months ended
       September 30, 2008.
    -- Net income grew by 10.4 times to $3.8 million for the three months
       ended September 30, 2009 from approximately $333,000 for the three
       months ended September 30, 2008.
    -- Fully diluted EPS of $0.08 for the three months ended September 30,
       2009 versus $0.01 for the three months ended September 30, 2008. An
       increase of 713%, year-over-year.

    For the nine months ended September 30, 2009:
    -- Revenue grew by 393% to $33.9 million in the nine months ended
       September 30, 2009 from $6.9 million in the nine months ended September
       30, 2008.
    -- Income from operations grew by 667% to $9.6 million in the nine months
       ended September 30, 2009 from $1.2 million in the nine months ended
       September 30, 2008.
    -- Net income was $8.1 million for the nine months ended September 30,
       2009 versus net loss of $4.3 million for the nine months ended
       September 30, 2008.
    -- Fully diluted EPS of $0.19 for the nine months ended September 30, 2009
       versus net loss of $0.14 per share in the nine months ended September
       30, 2008.

"We are very pleased to announce a record quarter for CREG, based on a combination of product sales, delivery of systems servicing a new customer and increasing recurring revenues from our portfolio of existing waste-energy recovery projects," Mr. Guohua Ku, Chairman and CEO of CREG, said. "This quarter we have both expanded the scope of our business industry sector as well as taken on larger projects. We are fully confident that we will continue to be a leader in build, operate and transfer (BOT) energy recovery projects in China and will deliver increasing value to our customers and shareholders."

Financial Results For Three Months Ended September 30, 2009

For the third quarter of 2009, CREG generated revenue of $18.4 million, a 333% increase from $4.3 million in the third quarter of 2008 and a 65% growth from $11.1 million in the second quarter of 2009. CREG sold one energy recycling system in the third quarter.

Gross profit was $4.2 million in the third quarter of 2009, compared with $1.3 million in the third quarter of 2008 and $2.7 million in the second quarter of 2009. Gross margin was 23.0%, compared to 24.2% in the second quarter of 2009 and 30.1% in the third quarter of 2008. The change in gross margin was primarily because of the higher gross profitability of the operational rental business, which the Company operated in the second quarter of 2008 but ended in the second quarter of 2009, compared with only straight product sales in the third quarter of 2009. CREG did not record any product sales in the third quarter of 2008.

Interest income on sales-type leases in the third quarter of 2009 was $1.8 million, up 57.2% over $1.10 million in the second quarter of 2009 and 209.3% higher than $0.6 million in the third quarter of 2008. The growth from last year was primarily due to the increased interest income from new energy recovery systems that have been completed.

General and administrative expenses increased to $1.4 million in the third quarter of 2009 from $0.6 million in the second quarter of 2009 and $1.0 million in the third quarter of 2008. The increase was mainly due to the overhead associated with the growth of CREG's portfolio of projects. It is inclusive of approximately $0.7 million of non-cash compensation expenses amortized in connection with our ESOP plan.

Income from operations in the third quarter of 2009 was $4.7 million compared with $3.3 million in the second quarter of 2009 and $0.8 million in the third quarter of 2008.

Net income was $3.8 million in the third quarter of 2009, compared with $3.3 million in the second quarter of 2009 and $0.33 million in the third quarter of 2008. GAAP diluted EPS was $0.08 in the third quarter of 2009, compared with $0.07 in the second quarter of 2009 and $0.01 in the third quarter of 2008.

Financial Results For Nine Months Ended September 30, 2009

For the nine months ended September 30, 2009, CREG had total revenue of $33.9 million, a 393% increase from the $6.9 million in revenue recorded in the same period of 2008. Of the total revenue, product sales revenue was $27.9 million and rental income from operational leases was $5.9 million. In the same period of 2008, CREG had rental income of $6.9 million.

Gross profit for the nine months ended September 30, 2009 was $8.2 million, 299% higher than the $2.1 million in the same period of 2008. Gross margin was 24.3% for the nine months ended September 30, 2009 versus 30.0% the same period of 2008. The change in gross margin was primarily due to the higher profitability of operational rental business in the year ago period, which ended in the second quarter of 2009.

For the nine months ended September 30, 2009, interest income from sales- type leases was $4.1 million, a 140% increase from $1.7 million in the same period of 2008. The growth was primarily due to the expansion of the sales type lease portfolio that began generating steady interest income this year.

General and administrative expenses were $2.7 million for the nine months ended September 30, 2009, an increase of 7% over $2.5 million over the same period last year. Inclusive of $1.1 million non-cash ESOP compensation expense and regardless of rapid business expansion, G & A expenses were largely contained primarily due to efficient control of employee compensation and marketing.

For the nine months ended September 30, 2009, income from operations was $9.6 million compared with $1.2 million in the same period of 2008, resulting in a 677% increase year-over-year.

For the nine months ended September 30, 2009, GAAP net income was $8.1 million compared with a net loss of $4.3 million in the same period of 2008. For the nine months ended September 30, 2009, GAAP diluted EPS was $0.19, compared with a diluted loss per share of $0.14 in the same period of 2008.

As of September 30, 2009, cash and cash equivalents, inclusive of restricted cash, were $10.1 million, compared with $7.3 million at year-end 2008. Total investments in sales-type leases were $43.2 million, compared with $16.8 million as of the end of 2008. Total shareholders' equity was $43.9 million, compared with $32.4 million at December 31, 2008.

Net cash provided by operating activities was $12.4 million in the nine months of 2009, compared with net cash outflow from operations of $4.4 million in the same period of 2008.

Business Guidance

For the nine months ended Sept 30, 2009, CREG recorded $ 33.9 million in sales revenues and an additional $4.1 million revenue in interest income on sale-type leasing, with a result of $8.1 million in net income. During the first nine months of 2009, the company has reached its previous guidance for the entire 2009 fiscal year, which was in the range of $33 million to $36 million, with net income, excluding non-cash charges, of approximately $8 million.

Subsequent Events

On October 26, 2009, CREG's subsidiaries, Xi'an TCH and Erdos TCH (collectively "the Borrower") jointly entered into a Non Promissory Short Term Revolving Financing Agreement, dated and effective from October 12, 2009, with Citi Bank (China) Co., Ltd., Shanghai Branch (the "Lender") for a line of credit amount up to RMB20 million.

On November 6, 2009, the Company's Board approved an increase in the size of the Board of Directors from three members to six members and the appointment of Mr. Sean Shao, Mr. Julian Ha and Mr. Timothy Driscoll as new members of the Board. Mr. Shao is expected to chair the Audit Committee of the Board and serve on the Nominating Committee. Mr. Ha is expected to chair the Compensation Committee of the Board and serve on the Audit Committee of the Board. Mr. Driscoll is expected to chair the Nominating Committee of the Board and serve on the Compensation Committee of the Board.

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For more information, please contact: In China: Mr. Leo Wu Investor Relations China Recycling Energy Corp. Email: tch@creg-cn.com In USA: Mr. Howard Gostfrand American Capital Ventures, Inc. Email: hg@amcapventures.com Financial Statements Attached CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, December 31, 2009 2008 (Unaudited) (Restated) ASSETS CURRENT ASSETS Cash & cash equivalents $5,683,300 $7,267,344 Restricted cash 4,395,153 -- Investment in sales type leases, net 4,212,046 1,970,591 Interest receivable on sales type leases 461,737 82,406 Prepaid expenses -- 3,849,087 Other receivables 248,037 102,850 Inventory -- 10,534,633 Total current assets 15,000,273 23,806,911 NON-CURRENT ASSETS Investment in sales type leases, net 39,012,834 14,837,879 Advance for equipment -- 2,642,889 Property and equipment, net 90,860 95,359 Construction in progress 9,432,787 3,731,016 Intangible assets, net -- 3,482 Total non-current assets 48,536,480 21,310,625 TOTAL ASSETS $63,536,753 $45,117,536 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $2,035,574 $1,186,902 Notes payable - bank acceptances 1,466,467 -- Short term loan 2,928,686 -- Unearned revenues -- 658,415 Tax payable 220,732 1,313,949 Accrued liabilities and other payables 2,977,962 3,528,527 Convertible notes 8,000,000 5,000,000 Accrued interest on convertible notes 228,676 168,494 Total current liabilities 17,858,098 11,856,287 DEFERRED TAX LIABILITY, NET 1,732,129 823,407 CONTINGENCIES AND COMMITMENTS STOCKHOLDERS' EQUITY Common stock, $0.001 par value; 100,000,000 shares authorized, 38,778,035 and 36,425,094 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively 38,778 36,425 Additional paid in capital 37,074,978 30,475,360 Statutory reserve 2,349,198 1,319,286 Accumulated other comprehensive income 3,617,330 3,582,587 Accumulated deficit 613,562 (2,991,995) Total Company stockholders' equity 43,693,846 32,421,663 Noncontrolling interest 252,679 16,179 Total equity 43,946,525 32,437,842 TOTAL LIABILITIES AND EQUITY $63,536,753 $45,117,536 CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS Of OPERATIONS (unaudited) NINE MONTHS ENDED THREE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2009 2008 2009 2008 (Restated) (Restated) Revenue Sales of products $27,938,697 $-- $18,425,620 $-- Rental income 5,946,892 6,876,223 -- 4,259,807 Total revenue 33,885,589 6,876,223 18,425,620 4,259,807 Cost of sales Cost of products 21,497,172 -- 14,179,421 -- Rental expense 4,148,572 4,810,011 -- 2,977,402 Total cost of sales 25,645,744 4,810,011 14,179,421 2,977,402 Gross profit 8,239,845 2,066,212 4,246,199 1,282,405 Interest income on sales-type leases 4,117,305 1,716,544 1,783,833 576,817 Total operating income 12,357,150 3,782,756 6,030,032 1,859,222 Operating expenses General and administrative expenses 2,730,971 2,543,563 1,375,230 1,039,784 Total operating expenses 2,730,971 2,543,563 1,375,230 1,039,784 Income from operations 9,626,179 1,239,193 4,654,802 819,438 Non-operating income (expenses) Interest income 29,702 -- 29,702 (57,029) Interest expense (320,546) (4,706,567) 113,222 -- Other expense (68,842) (2,239) (66,078) (1,238) Other income -- 1,621 -- 17 Exchange loss (2,718) (81,969) (329) (1,524) Total non- operating income (expenses) (362,405) (4,789,154) 76,516 (59,774) Income (loss) before income tax 9,263,774 (3,549,961) 4,731,318 759,664 Income tax expense 1,166,684 796,458 941,962 427,960 Net income (loss) from operations 8,097,089 (4,346,419) 3,789,355 331,704 Less: Net income (loss) attributable to noncontrolling interest (10,898) 83 (7,740) 27 Net income (loss) 8,107,987 (4,346,502) 3,797,095 331,677 Other comprehensive item Foreign currency translation gain (loss) 34,743 1,918,236 35,835 807,806 Comprehensive income (loss) $8,142,730 $(2,428,266) $3,832,930 $1,139,483 Basic weighted average shares outstanding 37,829,964 30,642,187 38,778,035 36,425,094 Diluted weighted average shares outstanding ** 43,915,609 34,256,352 47,900,894 37,404,892 Basic net earnings (loss) per share * $0.21 $(0.14) $0.10 $0.01 Diluted net earning (loss) per share * $0.19 $(0.14) $0.08 $0.01 * Interest expense on convertible notes are added back to net income for the computation of diluted EPS. * Basic and diluted loss per share is the same due to anti-dilutive feature of the securities. ** Diluted weighted average shares outstanding includes estimated shares upon conversion of the Second Note issued on April 29, 2008 with conversion price contingent upon future net profits. CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 2008 (Restated) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) including noncontrolling interest $8,097,089 $(4,346,419) Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by(used in) operating activities: Depreciation and amortization 23,155 10,848 Amortization of discount related to conversion feature of convertible note -- 4,684,932 Stock option compensation expense 1,129,328 1,129,151 Accrued interest on convertible notes 60,182 42,466 Changes in deferred tax 1,731,344 357,751 (Increase) decrease in current assets: Interest receivable on sales type leases (379,331) 65,045 Advance to suppliers and prepaid expenses 3,828,438 (6,567,350) Other receivables (113,744) (49,847) Increase (decrease) in current liabilities: Accounts payable 847,314 (1,217,170) Unearned revenue (658,655) -- Tax payable (1,917,728) 336,805 Accrued liabilities and other payables (260,167) 1,097,127 Net cash provided by (used in) operating activities 12,387,225 (4,456,661) CASH FLOWS FROM INVESTING ACTIVITIES: Restricted cash (4,393,159) (823,428) Investment in sales type leases (9,484,917) 734,692 Increase investment in subsidiary (16,100) -- Acquisition of property and equipment (15,096) (113,906) Construction in progress (8,255,441) (9,986,879) Net cash used in investing activities (22,164,713) (10,189,521) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of common stock 2,000,000 9,032,258 Convertible notes 3,000,000 5,000,000 Short-term bank loan 2,927,358 429,615 Repayment to management -- (74,699) Cash contribution from noncontrolling interest 263,439 -- Net cash provided by financing activities 8,190,797 14,387,174 EFFECT OF EXCHANGE RATE CHANGE ON CASH & CASH EQUIVALENTS 2,647 330,608 NET INCREASE IN CASH & CASH EQUIVALENTS (1,584,044) 71,600 CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD 7,267,344 1,634,340 CASH & CASH EQUIVALENTS, END OF PERIOD $5,683,300 $1,705,940 Supplemental Cash flow data: Income tax paid $1,307,406 $152,049 Interest paid $319,086 $--

    The Company' specific presentation details follow:

    Date:       Friday, November 20, 2009
    Time:       10:00a.m. Eastern Time in Track II

The Brean Murray, Carret & Co. 2009 China Growth Conference will be held November 19-20, 2009 at the Millennium Broadway Hotel in New York City and will feature 70 leading companies. The two-day conference consists of 25- minute presentation slots followed by 10-minute open floor Q&A sessions with institutional clients. The gathering of presenting companies, senior management and industry experts as well as institutional investors will enjoy a unique and comprehensive look at China on a global scale. In addition to each company presentation, 1x1 meetings will also be offered throughout the day.

About China Recycling Energy Corp.

China Recycling Energy Corp. ('CREG' or 'the Company') is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Email: hg@amcapventures.com

Investors in US are invited to participate on the live call by dialing (877) 485-3104, International investors should dial (201) 689-8579 both parties should reference event ID 00337567. A replay of the call will be available for 48 hours following the call. US domestic investors can dial (877) 660-6853 and International investors can call (201) 612-7415 both parties can enter pass code 337567.

About China Recycling Energy Corp.

China Recycling Energy Corp. ('CREG' or 'the Company') is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Email: hg@amcapventures.com

    The Company' specific presentation details follow:

    Date:           Friday, November 20, 2009
    Time:           10:00a.m. Eastern Time in Track II

The Brean Murray, Carret & Co. 2009 China Growth Conference will be held November 19-20, 2009 at the Millennium Broadway Hotel in New York City and will feature 70 leading companies. The two-day conference consists of 25- minute presentation slots followed by 10-minute open floor Q&A sessions with institutional clients. The gathering of presenting companies, senior management and industry experts as well as institutional investors will enjoy a unique and comprehensive look at China on a global scale. In addition to each company presentation, 1x1 meetings will also be offered throughout the day.

About China Recycling Energy Corp.

China Recycling Energy Corp. ("CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Email: hg@amcapventures.com

XI'AN, China, Nov. 6 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG - News; 'CREG' or 'the Company'), a fast-growing industrial waste-to-energy solutions provider in China, today announced the Board of Directors has approved the increase in the size of the Board of Directors from three members to six members. At the same time, the Board of Directors has appointed Mr. Sean Shao, Mr. Julian Ha and Mr. Timothy Driscoll as new members of the Board to fill the vacancies on the Board until their successors have been duly elected and qualified.

Mr. Shao is anticipated to chair the Audit Committee of the Board and serve on the Nominating Committee. Mr. Ha is anticipated to chair the Compensation Committee of the Board and serve on the Audit Committee of the Board. Mr. Driscoll is anticipated to chair Nominating Committee of the Board and serve on the Compensation Committee of the Board.

Mr. Sean Shao currently serves as a director of Agria Corporation, a China-based agricultural company listed on the NYSE, and as the Chairman of its Compensation Committee since November 2008, as a director and Chairman of the Audit Committee of Yongye International, Inc., a China-based agricultural company listed on the NASDAQ, since April 2009, and a director and Chairman of the Audit Committee of China Biologic Products, Inc., a plasma-based biopharmaceutical company in China listed on the OTCBB, since July 2008. Mr. Shao previously served as the Chief Financial Officer of Trina Solar Limited ("Trina") from August 2006 to June 2008, and as the chief financial officer of ChinaEdu Corporation, a Chinese educational service provider, from September 2005 to August 2006. Mr. Shao was the chief financial officer of Watchdata Technologies Ltd., a Chinese security software company, from August 2004 to September 2005 and a senior manager at Deloitte Touche Tohmatsu Beijing from October 1998 to July 2004 and Deloitte & Touche Toronto from December 1994 to November 1997. Mr. Shao received his master's degree in health care administration from the University of California at Los Angeles in 1988 and his bachelor's degree in art from East China Normal University in 1982. Mr. Shao is a CPA and holds a license with the American Institute of Certified Public Accountants.

Mr. Julian Ha is a member of the Private Equity, Financial Officers and Legal practice groups of Heidrick & Struggles, a publicly-listed, global retained executive search firm since 2006. Mr. Ha focuses on placing senior- level legal and finance executives into public and private companies. From 2005 through 2006, Mr. Ha was a Director in the Corporate Finance group of Evolution Securities China Limited, an investment bank based in London, UK. From 2001 to 2005, Mr. Ha was a Director of European Business Development for CapitalKey Advisors and Capital IQ, a corporate finance boutique and private equity research firm backed by CSFB, Merrill Lynch, JP Morgan Chase and Dresdner Bank. Mr. Ha was an Executive Vice President with DDL, a London- based venture capital fund from 2000 to 2001, where he was responsible for portfolio management. Mr. Ha trained as a corporate lawyer and has practiced in New York, Washington, D.C., London, Singapore and Shanghai. Mr. Ha received his BA from Cornell University, his Masters degrees from the London School of Economics and Harvard University and his JD from the NYU School of Law.

Mr. Driscoll currently serves as the chief executive officer of Proteus Industries, president of MTD Ventures, and president and chief of executive officer of Driscoll Management Services. Mr. Driscoll also serves as a director of American Oil and Supply International and Proteus Industries. From 1994 through 1999, Mr. Driscoll was the president and chief executive officer of Agrevo Environmental Health and was the president and chief executive officer of Rouossel UCLAF Environmental Health from 1991 to 1994. Mr. Driscoll received his MBA in Finance from Xavier University and B.S. in Economics from Villanova University.

Mr. Ku Guohua, Chairman and CEO of CREG commented, "We sincerely welcome Mr. Shao, Mr. Ha and Mr. Driscoll to the board. Their professional expertise will greatly aid the Company in improving corporate governance and is a great resource for the future growth of the Company. This is also a big positive step forward toward achieving a higher listing."

About China Recycling Energy Corp.

China Recycling Energy Corp. ('CREG' or 'the Company') is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In USA:
     Mr. Howard Gostfrand
     American Capital Ventures, Inc.
     Email: hg@amcapventures.com

XI'AN, China, Nov. 1 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG - News; 'CREG' or 'the Company'), a fast-growing industrial waste-to-energy solutions provider in China, today announced that it has delivered to Shenmu County Jiujiang Trading Co., Ltd. ("Shenmu") a set of 18-megawatt capacity power generating systems pursuant to a Cooperative Contract on Coke-oven Gas Power Generation Project and a Gas Supply Contract for Coke-oven Gas Power Generation Project. The 10-year Contracts provide that the Company will recycle waste gas from Shenmu's 600,000 tons per year coke production line to generate power, which will then be sold back to Shenmu for use in production. Shenmu agrees to supply the coke-oven gas free of charge. Power generation and delivery of power begin in October 2009.

Under the Contracts, Shenmu will pay to the Company "energy-saving service fees" of approximately $473,000 per month for the life of the Contracts, as well as such additional amount as may result from the supply of power to Shenmu in excess of 10.80 million kilowatt hours per month at the rate of .30 yuan (approximately $.04) per kilowatt hour. The Company will subcontract a third party operator at a cost of approximately $438,000 per year.

The Company expects to treat the Contracts as a sale-type lease. Based on the accounting model CREG applies regarding sale-type leasing under US GAAP, the Company expects to recognize approximately $18.3 million in revenue at September 30, 2009 (the delivery date) with a related cost of goods sold of $14.1 million. After the inception of the lease, CREG anticipates that it will recognize a total amount of $38.4 million as interest income from this sale-type lease over the 10-year term, on a monthly accumulative basis as it receives the monthly installment payments from Shenmu.

The Company maintains the ownership of the project throughout the term of the Contracts, including the already completed investment, design, equipment, construction and installation as well as the operation and maintenance of the project. CREG agrees to pay to Shenmu 50,000 yuan (about $7,300) a year to use the land for the power station. At the end of the 10-year term, ownership of the systems transfers to Shenmu at no additional charge.

"This is CREG's first project in the coking industry, one of the most energy intensive sectors in China." said Mr. Guohua Ku, CEO of CREG. "This project is expected to reduce annual coal consumption by 52,000 tons, equivalent of 130,000 tons of CO2 emissions. We are excited about the substantial growth in our Company as we take on ever larger projects with waste gas-to-energy solution."

About China Recycling Energy Corp.

China Recycling Energy Corp. ('CREG' or 'the Company') is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com.

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    In China:
    Mr. Leo Wu
    Investor Relations
    China Recycling Energy Corp.
    Email: tch@creg-cn.com

    In USA:
    Mr. Howard Gostfrand
    American Capital Ventures, Inc.
    Email: hg@amcapventures.com

The ROTH China Conference is scheduled for October 12-14, 2009 at Fontainebleau Hotel, 4441 Collins Ave, Miami Beach, Florida 33139. The Company's management is currently scheduled to present at 2:30 p.m. ET on October 14 in Glimmer 2. Management team will be also available for one-on-one meetings with analysts and portfolio managers during the conferences.

The ROTH China Conference will feature presentations from a select group of US-listed Chinese companies with attractive growth potential. Over 50 U.S. listed China companies along with a sampling of US companies with growth prospects in China will be presenting at the conference. The schedule also includes an energy panel that explores important sector themes, changes and trends. These panels will be comprised of industry experts, research analysts, bankers, and other professionals.

For more information regarding the ROTH China Conference, please contact your ROTH Capital Partner sales representative.

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB - News; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
    Mr. Leo Wu
    Investor Relations
    China Recycling Energy Corp.
    Email: tch@creg-cn.com

According to the Measures on Recognition of High-Tech Enterprises and Key High-Tech Areas with the Support of the State, jointly issued by Ministry of Science and Technology, Ministry of Treasury and the State Administration of Taxation (SAT) of China in April 2008, high-tech enterprises need to be reviewed and recognized under these regulations. The new recognition measures and its guideline take the following criteria into consideration: core independent intellectual property of an enterprise, capability of transforming and commercializing scientific achievements, organization and management of research and development department, and total assets and growing capability, etc. The percentage of the revenue spent in research and development comparing to its sales revenue, the revenue received from sales of high-tech products (services) comparing to its total revenue, and number of employees engaging research and development comparing to the entire employee number of the enterprise are strictly examined in order to be recognized as a High-Tech Enterprise. TCH has met all the above requirements under these regulations, and received the High-Tech Enterprise Recognition Certification. This recognition/certification demonstrates the Company's comprehensive competence in high-tech research, transformation and development.

To promote the development of high-tech industry, China has released a series of measures to support high-tech enterprises, providing tax breaks and financial incentives to such enterprises. The Company and its subsidiaries will take full advantages of these policies, exert its technical expertise in recycling energy field and contribute more clean energy solutions to industrial users in a more efficient way.

About China Recycling Energy Corp.

China Recycling Energy Corp. ('CREG' or 'the Company') is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

SOURCE China Recycling Energy Corp.

Source: PR Newswire (August 26, 2009 - 8:00 AM EDT)

According to the Measures on Recognition of High-Tech Enterprises and Key High-Tech Areas with the Support of the State, jointly issued by Ministry of Science and Technology, Ministry of Treasury and the State Administration of Taxation (SAT) of China in April 2008, high-tech enterprises need to be reviewed and recognized under these regulations. The new recognition measures and its guideline take the following criteria into consideration: core independent intellectual property of an enterprise, capability of transforming and commercializing scientific achievements, organization and management of research and development department, and total assets and growing capability, etc. The percentage of the revenue spent in research and development comparing to its sales revenue, the revenue received from sales of high-tech products (services) comparing to its total revenue, and number of employees engaging research and development comparing to the entire employee number of the enterprise are strictly examined in order to be recognized as a High-Tech Enterprise. TCH has met all the above requirements under these regulations, and received the High-Tech Enterprise Recognition Certification. This recognition/certification demonstrates the Company's comprehensive competence in high-tech research, transformation and development.

To promote the development of high-tech industry, China has released a series of measures to support high-tech enterprises, providing tax breaks and financial incentives to such enterprises. The Company and its subsidiaries will take full advantages of these policies, exert its technical expertise in recycling energy field and contribute more clean energy solutions to industrial users in a more efficient way.

About China Recycling Energy Corp.

China Recycling Energy Corp. ("CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    Highlights

    For Three months ended June 30, 2009

    -- Revenue was $11.1 million compared to $4.3 million in the first quarter
       of 2009 and $2.6 million in the second quarter of 2008.
    -- Income from operations was $3.3 million, compared to $1.7 million in
       the first quarter of 2009 and $503,413 in the second quarter of 2008.
    -- General Administrative Expenses were $560,303, compared to $796,438 in
       the first quarter of 2009 and $855,169 in the second quarter of 2008.
    -- Net income was $3.2 million with a Diluted EPS of $0.07 versus net
       income of $1.1 million and a diluted EPS of $0.02 in the first quarter
       of 2009 and a net loss of $3.8 million and a diluted EPS of $(0.12) in
       the second quarter of 2008 (restated).
    -- Non-GAAP Net Income and Non-GAAP Diluted EPS, as defined below, was
       $3.3 million and $0.08 in the second quarter of 2009, compared to
       $1.5 million and $0.03 in the first quarter of 2009 and approximately
       $578,000 and $0.02 in the second quarter of 2008.

    For Six months ended June 30, 2009

    -- Revenue was $15.5 million, compared to $2.6 million in the same period
       of 2008.
    -- Interest income from sales-type leases was $2.3 million versus $1.1
       million in the same period of 2008.
    -- Income from operations was $5 million versus $419,755 in the same
       period of 2008.
    -- Net income was $4.3 million with a Diluted EPS of $0.10, compared to a
       net loss of $3.6 million and a Diluted EPS of $(0.17) in the same
       period of 2008 (restated).
    -- Non-GAAP Net Income from Operations, as defined below, was $5.4 million,
       compared with $1.1 million in the same period of 2008.
    -- Non-GAAP Net Income was $4.8 million with Non-GAAP Diluted EPS of $0.11,
       compared with approximately $639,000 and $0.02 in the same period of
       2008.
    -- Net cash flow provided by operations was $9 million, compared with net
       cash used in operations of $3.8 million in the same period of 2008.
    -- Cash on hand at June 30, 2009 was $14.7 million versus $7.3 million at
       year-end 2008.

'I am pleased with our results for the second quarter, which were driven by sales of our energy recycling systems to our customers,' Mr. Guohua Ku, Chairman and CEO of CREG, said. 'With one more system put into operation, we have achieved a significant move forward to build up a strong fleet of waste-to-energy systems, which not only creates additional clean energy for our customers but also generates steady cash revenue streams for us in the future. During the past six months, we had two major projects delivered to our customers. Compared with last year, we are in better financial position and have more confidence in our engineering prowess and performance capabilities. Now we are more confident and more ready to pursue the large-scale, clustered power system projects that we have engaged with some industrial giants in China. We are building up a brand that customers can trust.'

    Summary of Financial Results

    (In '000s of U.S. Dollars,        SIX MONTHS ENDED     THREE MONTHS ENDED
     except for per share data)           JUNE 30                JUNE 30
                                                2008                   2008
                                        2009 (RESTATED)        2009 (RESTATED)
    Revenue                            15,460  2,616          11,137   2,616
    Gross profit                        3,994    784           2,692     784
    Income from Operations              4,971    420           3,267     503
    Net income                          4,310 (4,678)          3,235  (3,790)
    Diluted EPS                          0.10  (0.17)           0.07   (0.12)
    Add:
      Compensation expenses for
       stock options                      442    632              53     307
      Amortization of discount on
       conversion feature of
       convertible notes                       4,685                   4,061
    Non-GAAP Income from
     operations(1)                      5,413  1,052           3,320     810
    Non-GAAP net income(1)              4,752    639           3,288     578
    Non-GAAP diluted EPS(1)              0.11   0.02            0.08    0.02


    (1) CREG provides income from operations, net income and earnings per
        share on a non-GAAP basis that excludes non-cash, share-based
        compensation expense and non-cash interest expense on the amortization
        of the beneficial conversion feature for our convertible notes, as
        described below, to enable investors to better assess the Company's
        operating performance. The non-GAAP measures are described below and
        reconciled to the corresponding GAAP measure in the section below
        titled 'About Non-GAAP Financial Measures.'

For Three Months Ended June 30, 2009 Financial Results

For the second quarter of 2009, CREG generated revenue of $11.1 million, a 158.1% increase from $4.3 million in the first quarter of 2008 and a 325.6% growth from $2.6 million in the second quarter of 2008. CREG sold one energy recycling system in the second quarter. In the second quarter, product sales accounted for 85% of revenue while rental income from operational leases of industrial plants contributed the other 15%. CREG recorded only rental income revenue in the first quarter of 2009 and the second quarter of 2008.

Gross profit was $2.7 million in the second quarter of 2009, compared with $1.3 million in the first quarter of 2009 and $783,807 in the second quarter of 2008. Gross margin was 24.2%, compared to 30% both in the first quarter of 2009 and the second quarter of 2008. The change in gross margin was primarily because of the higher profitability of the operational rental business compared with straight product sales. CREG did not record any product sales in the first quarter of 2009 or the second quarter of 2008.

Interest income from sales-type leases in the second quarter of 2009 was $1.13 million, almost the same as $1.20 million in the first quarter of 2009 but 97.5% higher than $574,775 in the second quarter of 2008. The growth for last year was primarily due to the inception of one sales-type lease in December 2008 that began generating steady interest income this year.

General and administrative expenses were $560,303 in the second quarter of 2009, down 29.6% from $795,438 in the first quarter of 2009 and 34.5% less than $855,169 in the second quarter of 2008. The decrease was primarily due to management's efficient control on employee compensation and marketing and our responsibility for the daily maintenance and repair of the energy saving system expenses.

Non-GAAP Income from Operations, as defined below, was $3.3 million in the second quarter of 2009, compared with $2.10 million in the first quarter of 2009 and approximately $810,000 in the second quarter of 2008. GAAP income from operations in the second quarter of 2009 was $3.3 million compared with $1.7 million in the first quarter of 2009 and $503,413 in the second quarter of 2008.

Non-GAAP net income in the second quarter of 2009 was $3.3 million, compared with $1.5 million in the first quarter of 2009 and approximately $578,000 in the second quarter of 2008. Non-GAAP diluted EPS in the second quarter of 2009 was $0.08 compared with $0.03 in the first quarter of 2009 and $0.02 in the second quarter of 2008. GAAP net income was $3.2 million in the second quarter of 2009, compared with $1.1 million in the first quarter of 2009 and a net loss of $3.8 million in the second quarter of 2008. GAAP diluted EPS was $0.07 in the second quarter of 2009, compared with $0.02 in the first quarter of 2009 and a diluted loss per share of $0.12 in the second quarter of 2008.

For Six Months Ended June 30, 2009 Financial Results

For the six months ended June 30, 2009, CREG had total revenue of $15.5 million, 490.9% more than the $2.6 million in revenue in the same period of 2008. Of the total revenue, product sales revenue was $9.5 million and rental income from operational leases was $6 million. In the same period of 2008, CREG had rental income of $2.6 million.

Gross profit for the six months ended June 30, 2009 was $4 million, 409.5% higher than the $783,807 in the same period of 2008. Gross margin was 25.82% for the six months ended June 30, 2009 versus 30% in the same quarters of 2008. The change in gross margin was primarily because of higher profitability of operational rental business compared with straight product sales.

For the six months ended June 30, 2009, interest income from sales-type leases was $2.3 million, a 104.7% increase from $1.1 million in the same period of 2008. The growth was primarily due to the inception of one sales-type lease in December 2008 that began generating steady interest income this year.

General and administrative expenses were $1.4 million for the six months ended June 30, 2009, approximately 10% less than the $1.5 million over the same period of last year. The decrease was primarily due to management's efficient control of employee compensation and marketing and our responsibility for the daily maintenance and repair of the energy saving system expenses.

For the six months ended June 30, 2009, Non-GAAP Income from Operations was $5.4 million compared with $1.1 million in the same period of 2008. GAAP operating income for the six months ended June 30, 2009 was $5 million compared with $0.42 million in the same period of 2008.

For the six months ended June 30, 2009, Non-GAAP net income was $4.8 million, compared with $0.64 million in the same period of 2008. Non-GAAP diluted EPS for the six months ended June 30, 2009 was $0.11 compared with $0.02 in the same period of 2008. GAAP net income for the six months ended June 30, 2009 was $4.3 million compared with a net loss of $4.7 million in the same period of 2008. For the six months ended June 30, 2009, GAAP diluted EPS was $0.10, compared with a diluted loss per share of $0.17 in the same period of 2008.

As of June 30, 2009, cash and cash equivalents were $14.7 million, compared with $7.3 million at year-end 2008. Total investments in sales-type leases were $25.4 million, compared with $16.8 million as of the end of 2008. Net working capital increased to $14 million, from $12.1 million at December 31, 2008. Total shareholders' equity was $39.1 million, compared with $32.4 million at December 31, 2008.

Net cash provided by operating activities was $9 million in the six months of 2009, compared with net cash outflow from operations of $3.8 million in the same period of 2008.

Business Outlook

CREG reaffirms its expectations for 2009 revenue to be in the range of $33 million to $36 million, with net income, excluding non-cash charges, of approximately $8 million. These targets are based on the Company's current views on the operating and market conditions, which are subject to change.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for earnings that exclude the effect of non-cash, non-operating expenses related to the Convertible Notes issued in November 2007 and April 2008, respectively, as well as the compensation expenses for the fair value of stock options. CREG uses non-GAAP financial measures when it internally evaluates the performance of business and makes operating decisions, including internal budgeting and performance measurement. The Company believes that providing the non-GAAP measures is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand CREG's financial performance in comparison to historical periods, and it allows investors to evaluate CREG's performance using the same methodology and information as that used by the Company's management. However, investors need to be aware that non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and they involve the exercise of judgment for which charges are excluded from the non-GAAP financial measure.

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB) ('CREG' or 'the Company') is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

                          FINANCIAL TABLES TO FOLLOW



             CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS

                                             AS OF                 AS OF
                                         JUNE 30, 2009       DECEMBER 31, 2008
                                          (UNAUDITED)            (RESTATED)
    ASSETS
    CURRENT ASSETS

      Cash & cash equivalents             $14,662,204             $7,267,344
      Investment in sales type
       leases, net                          3,296,294              1,970,591
      Interest receivable on sales
       type leases                            230,078                 82,406
      Prepaid expenses                         20,451              3,849,087
      Other receivables                       112,178                102,850
      Inventory                            13,408,481             10,534,633

        Total current assets               31,729,686             23,806,911

    NON-CURRENT ASSETS
      Investment in sales type
       leases, net                         22,131,128             14,837,879
      Advance for equipment                        --              2,642,889
      Property and equipment, net              88,577                 95,359
      Construction in progress              4,499,480              3,731,016
      Intangible assets, net                    9,583                  3,482

        Total non-current assets           26,728,768             21,310,625


    TOTAL ASSETS                          $58,458,454            $45,117,536

    LIABILITIES AND STOCKHOLDERS'
     EQUITY
    CURRENT LIABILITIES

      Accounts payable                     $3,243,403             $1,186,902
      Bank loan payable                     2,927,443                     --
      Unearned revenues                       658,675                658,415
      Taxes payable                           273,087              1,313,949
      Accrued liabilities and
       other payables                       2,623,401              3,528,527
      Convertible notes                     8,000,000              5,000,000

        Total current liabilities          17,726,009             11,687,793

    DEFERRED TAX LIABILITY                    946,845                823,407

    ACCRUED INTEREST ON CONVERTIBLE
     NOTES                                    335,836                168,494

    CONTINGENCIES AND COMMITMENTS

    STOCKHOLDERS' EQUITY
      Common stock, $0.001 par value;
       100,000,000 shares authorized,
       38,778,035 and 36,425,094 shares
       issued and outstanding as of
       June 30, 2009 and December 31,
       2008, respectively                      38,778                 36,425
      Additional paid in capital           36,387,842             33,947,963
      Statutory reserve                     1,883,400              1,319,286
      Accumulated other
       comprehensive income                 3,581,495              3,582,587
      Accumulated deficit                  (2,718,249)            (6,464,598)

        Total Company
         stockholders' equity              39,173,266             32,421,663

        Noncontrolling interest               276,498                 16,179

        Total equity                       39,449,764             32,437,842

    TOTAL LIABILITIES AND EQUITY          $58,458,454            $45,117,536



               CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                  SIX MONTHS ENDED       THREE MONTHS ENDED
                                      JUNE 30,                JUNE 30,
                                  2009        2008        2009        2008
                                           (RESTATED)              (RESTATED)
    Revenue
      Sales of products       $9,513,077          $--  $9,513,077         $--
      Rental income            5,946,892    2,616,416   1,623,999   2,616,416

    Total revenue             15,459,969    2,616,416  11,137,076   2,616,416
    Cost of sales
      Cost of products         7,317,751           --   7,317,751          --
      Rental expense           4,148,572    1,832,609   1,126,899   1,832,609
    Total cost of sales       11,466,323    1,832,609   8,444,650   1,832,609
    Gross profit               3,993,646      783,807   2,692,426     783,807
    Interest income on
     sales-type leases         2,333,472    1,139,727   1,134,941     574,775
      Total operating income   6,327,118    1,923,534   3,827,367   1,358,582

    Operating expenses
      General and
       administrative expenses 1,355,741    1,503,779     560,303     855,169
      Total operating expenses 1,355,741    1,503,779     560,303     855,169
    Income from operations     4,971,377      419,755   3,267,064     503,413
    Non-operating income
     (expenses)
      Interest income                 --       14,846          --      14,846
      Interest expense          (433,768)  (4,664,384)   (375,549) (3,921,106)
      Financial expense           (2,764)      (1,001)       (670)       (579)
      Other income                    --        1,604          --          23
      Exchange loss               (2,389)     (80,445)     (2,389)    (69,256)
      Total non-operating
       expenses                 (438,921)  (4,729,380)   (378,608) (3,976,072)
    Income (loss) before
     income tax                4,532,456   (4,309,625)  2,888,456  (3,472,659)

    Income tax expense           225,151      368,498    (342,960)    317,551
    Net income (loss) from
     operations                4,307,305   (4,678,123)  3,231,416  (3,790,210)
    Less: Net income
     attributable to
     noncontrolling interest      (3,158)          56      (3,198)         29

    Net income (loss)          4,310,463   (4,678,179)  3,234,614  (3,790,239)
    Other comprehensive item
      Foreign currency
       translation gain (loss)    (1,092)   1,110,475      28,803   1,035,750

    Comprehensive
     income (loss)            $4,309,371  $(3,567,704) $3,263,417 $(2,754,489)
    Basic weighted average
     shares outstanding       37,348,071   27,718,959  38,260,905  30,422,829

    Diluted weighted average
     shares outstanding       43,511,301   32,639,681  44,600,370  34,602,018

    Basic net earnings
     per share                     $0.12       $(0.17)      $0.08      $(0.12)
    Diluted net earnings
     per share                     $0.10       $(0.17)      $0.07      $(0.12)


    *  Interest expense on convertible notes are added back to net income for
       the computation of diluted EPS
    *  Diluted weighted average shares outstanding includes shares estimated
       to be converted from the Second Note issued on April 29, 2008 with
       conversion price contingent upon future net profits.
    *  Basic and diluted loss per share is the same due to anti-dilutive
       feature of the securities.



               CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                    SIX MONTHS ENDED JUNE 30,
                                                        2009         2008
                                                                  (RESTATED)
    CASH FLOWS FROM OPERATING ACTIVITIES:
      Net income (loss) including
       noncontrolling interest                       $4,307,305   (4,678,123)
      Adjustments to reconcile net income
       (loss) including noncontrolling
       interest to net cash provided by
       (used in) operating activities:
      Depreciation and amortization                      15,018        5,000
      Amortization of discount related to
       conversion feature of convertible note                --    4,684,932
      Stock option compensation expense                 442,191      632,444
      Accrued interest on convertible notes             167,342      (20,548)
      Changes in deferred tax                           123,438           --
        (Increase) decrease in current assets:
          Accounts receivable                                --     (843,015)
          Interest receivable on sales type leases      230,051           --
          Prepaid expenses                            3,899,203   (9,213,073)
          Other receivables                              (1,708)     (22,193)
          Inventory                                    (299,355)          --
        Increase (decrease) in current liabilities:
          Accounts payable                            2,055,791    4,392,250
          Taxes payable                              (1,041,599)     267,704
          Accrued liabilities and other payables       (906,267)   1,041,821
      Net cash provided by (used in)
       operating activities                           8,991,410   (3,752,801)

    CASH FLOWS FROM INVESTING ACTIVITIES:
          Investment in sales type leases            (8,988,974)     559,436
          Acquisition of property & equipment           (14,297)     (85,789)
          Construction in progress                     (766,900)  (5,613,063)
      Net cash used in investing activities          (9,770,171)  (5,139,416)

    CASH FLOWS FROM FINANCING ACTIVITIES:
          Issuance of common stock                    2,000,000    9,032,258
          Issuance of convertible notes               3,000,000    5,000,000
          Bank loan payable                           2,927,101           --
          Cash contribution from
           noncontrolling interest                      263,439           --
          Due from management                            (3,440)     (73,906)
      Net cash provided by financing activities       8,187,100   13,958,352
    EFFECT OF EXCHANGE RATE CHANGE ON CASH &
     CASH EQUIVALENTS                                   (13,479)     301,119
    NET INCREASE IN CASH & CASH EQUIVALENTS           7,394,860    5,367,254
    CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD      7,267,344    1,634,340
    CASH & CASH EQUIVALENTS, END OF PERIOD          $14,662,204   $7,001,594

    Supplemental Cash flow data:
       Income tax paid                               $1,074,560     $105,433
       Interest paid                                   $261,858          $--

SOURCE China Recycling Energy Corp.

Source: PR Newswire (August 21, 2009 - 8:00 AM EDT)

XI'AN, China, May 14 -- China Recycling Energy Corp. (OTC Bulletin Board: CREG - News; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced unaudited financial results for the first quarter of 2009 ended March 31, 2009.

    First Quarter 2009 Highlights
    -- Revenue was $4.3 million, vs. zero in the same period of 2008
    -- Gross margin was 30.2% vs. 25.5% in the fourth quarter of 2008
    -- Interest income from sales-type leases was $1.2 million vs. $565,000 in
       the same quarter of 2008
    -- Net income was 1.1 million, Diluted EPS $0.02 vs. net loss $888,000,
       diluted EPS (0.04) in the same quarter of 2008
    -- Non-GAAP net operating income, as defined below, was $2.1 million;
       Non-GAAP diluted EPS $0.03
    -- Cash on hand at March 31, 2009 was $10.2 million, vs. $7.3 million at
       year-end 2008
    -- Net cash flow provided by operations in the first quarter of 2009 was
       $4.4 million, compared with net cash used in operation of $279,000 in
       the same period of 2008

"I am pleased with our continued profitability since the third quarter of last year and our steady revenue streams from operational rental business and interest income from sales-type leases," Mr. Guohua Ku, Chairman and CEO of CREG, said. "Our business model is working and our cash flow has continued to be positive since late last year. If the macro economic environment continues to improve and the Chinese government continues to induce more clean energy generation, with the recent $7.9 million capital raise and our electricity- generation Joint Venture with Inner Mongolia Erdos Metallurgy Co., Ltd., the largest iron-alloy production facilities in China, we are confident to apply our financial resources and our engineering prowess to pursue large-scale, clustered power system projects."

To read the rest of the release, please click here

'We are very pleased to retain Deloitte as our new auditors,' said Mr. Guohua Ku, Chairman and CEO of CREG. 'After our Board's comprehensive review of several leading auditing firms on their ability to serve fast-growing public Chinese companies in the industrial sector, we have concluded Deloitte's size, reputation, industry expertise, and local accessibility will ultimately provide us with cost-effective, efficient and trustworthy services. This also marks one of the rare instances in which Deloitte has agreed to provide services to a micro-cap Chinese company, demonstrating CREG's ability and commitment to implement internal financial controls that meet global standards. We look forward to working with our new auditors to serve CREG's shareholders well at this time in the Company's evolution.'

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTC Bulletin Board: CREG) ('CREG' or 'the Company') is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain 'forward-looking statements' relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In the U.S.:
     Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: valentine.ding@us.grayling.com

SOURCE China Recycling Energy Corp.

Source: PR Newswire (May 11, 2009 - 8:13 AM EDT)

XI'AN, China, May 5 -- China Recycling Energy Corp. (OTC Bulletin Board: CREG - News; "CREG" or "the Company"), a fast-growing industrial waste-to-energy solutions provider in China, today announced that it has raised an aggregate amount of $7.9 million in three separate transactions during April 2009.

On April 29, 2009, CREG issued an 8% Secured Convertible Promissory Note in the principal amount of $3 million to Carlyle Asia Growth Partners and CAGP III Co-Investment ("Carlyle Asia"). In addition, the Company amended and restated the 5% Secured Convertible Promissory Note in the principal amount of $5 million previously issued to Carlyle Asia in April 2008.

On April 20, 2009, the Company entered into a Stock Purchase Agreement with an accredited private investor. Pursuant to the agreements, CREG issued approximately 2.4 million shares, with one-year lock-up period not to sell, for an aggregate purchase price of $2 million, or $0.85 per share.

On April 13, 2009, the Company's wholly owned subsidiary, Xi'an TCH Energy Technology Co., Ltd., entered into a one-year working capital loan agreement with the Industrial Bank Co., Ltd.'s Xi'an branch, to borrow $2.9 million (RMB 20 million) at an interest rate of 5.3%. The loan agreement contains standard representations, warranties and covenants.

CREG intends to use the net proceeds from the aforementioned transactions to cover capital expenditures for its operations in China and other working capital needs.

"With our newly acquired financial resources, CREG is better positioned to pursue large-scale, clustered power system projects such as the one with Inner Mongolia Erdos Metallurgy Co., Ltd.," said Mr. Guohua Ku, CEO of CREG. "We are very encouraged by the recent signs of economic recovery in China as well as the government initiatives to induce more clean energy generation, including the recycling of industrial waste into electricity. As the recovery of manufacturing activity in China increases, CREG is poised to see more opportunities for its engineering expertise."

About China Recycling Energy Corp.

China Recycling Energy Corp. ("CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In the U.S.:
     Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: valentine.ding@us.grayling.com

XI'AN, China, April 6 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG - News; "CREG" or "the Company"), a fast- growing industrial waste-to-energy solutions provider in China, today announced that it has signed a joint venture ("JV") agreement with Erdos Metallurgy Co., Ltd. ("Erdos"), located in Inner Mongolia of China, to reduce pollution and improve energy efficiency at Erdos facilities.

Pursuant to the agreement, the JV, which will initially be 80% owned by CREG through Xi'an TCH, its wholly owned subsidiary, will design, install, test, operate, and monitor 11 energy-recycling systems, which generate electricity and heat from industrial wase, at 54 iron ore furnaces owned by Erdos. The JV is expected to reduce Erdos's dependence on the external power grid by 10% and lessen the need for coal-fired boilers to generate heat. This forthcoming energy-recycling project will be one of key projects in the province and to date the largest project of this type in China's non-ferrous metallurgy industry.

The first system ("Phase One") is expected to be completed and start power generation by October 2009. Phase One is projected to generate annual revenue of approximately $2.9 million (RMB 20 million) for the next 20 years. When completed, the 11 systems are projected to have a combined capacity of 70 MW with the potential to grow to 120 MW or more and 30 tons of steam per hour. Together these systems are expected to generate revenue of $38 million (RMB 265 million) per year.

"We are extremely excited about the prospects of new revenue streams for us from this JV," said Mr. Guohua Ku, CEO of CREG. "Erdos is one of the biggest and best-known enterprises in Inner Mongolia, and it has the largest iron-alloy production facilities in China. This JV agreement is significant because it validates our engineering ability to build and manage large-scale, clustered power systems that are powered by waste gas and heat, and also designed to reduce industrial pollution. We intend to finance this JV from our own resources and also take advantage of the favorable loan terms offered by the local government's stimulus package in Inner Mongolia."

The JV will be set up in the Industrial Park of the town of Chessboard Well, which is located in Otog Banner, Ordos City in Inner Mongolia - the same location as Erdos itself. The JV is currently awaiting registration approval from the local authorities.

About Erdos Metallurgy Co., Ltd.

Erdos Metallurgy Co., Ltd. is a wholly owned subsidiary of Inner Mongolia Erdos Group Co., Ltd., one of China's leading manufacturing conglomerates with total assets of $2.7 billion (RMB 18.3 billion), 24,000 employees and 115 subsidiaries in industries ranging from cashmere, coal, power, metallurgy to chemical. Erdos Group is one of China Fortune 500 companies and one of the 520 Key Enterprises designated by the Chinese government. Erdos Metallurgy Co., Ltd. is the largest iron alloy manufacturer in the world by production capacity.

About China Recycling Energy Corp.

China Recycling Energy Corp. ("CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In the U.S.:
     Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: valentine.ding@us.grayling.com

    Highlights for Fourth Quarter and Full Year 2008

    -- Fourth quarter 2008 revenue grew 189.7% quarter-over-quarter to $12.3
       million
    -- Fourth quarter 2008 non-GAAP net income, as defined below, rose 189.9%
       quarter-over-quarter to $2.4 million
    -- Full year 2008 revenue increased 106.5% year-over-year to $19.2 million
    -- Full year 2008 non-GAAP net income, as defined below, increased 105%
       year-over-year to $3.9 million
    -- The Company has now completed three sales-type leases and two
       operational leases to receive rental and interest incomes through
       electricity generation from industrial waste heat and gas

"I am pleased to see our timely completion of the low-temperature waste-heat power generation system for Shengwei Construction Materials Group Co., Ltd. in Tongchuan City, Shaanxi Province," Mr. Guohua Ku, CEO of CREG, said. "This is the first project for Shengwei that added product sales revenue for us in the fourth quarter, as we had expected. It also brought the total number of our completed projects to five, including three sales-type leases and two operational leases. These projects are spread out in China's steel, cement and chemical industries, and will generate stable, recurring rental and interest incomes for us for the next five to 13 years."

    Summary of Financial Results

      (In '000s of U.S.           FOR THE YEAR      FOR THE THREE MONTHS ENDED
       Dollars, except            ENDED DEC. 31,       DEC. 31,     SEPT. 30,
       for per share data)      2008         2007        2008          2008

    Revenue              $     19,218  $     9,302 $     12,341  $     4,260
    Gross profit                5,216        2,269        3,150        1,282
    Income before Tax
     (IBT)                      3,466        2,316        3,143        1,160
    Add:
    Amortization of discount
     related to conversion
     feature of convertible
     note                       1,212          315           --           --
    Compensation expenses
     for stock options            856          172          127           96
    Non-GAAP IBT  (1)           5,534        2,803        3,270        1,256
    Net income                  1,833        1,878        2,306          733
    Non-GAAP net income
     (1)                        3,902        2,365        2,434          828
    Diluted EPS                  0.03         0.10         0.04         0.02
    Non-GAAP diluted EPS
     (1) (2)                     0.10         0.10         0.06         0.02

    (1) CREG provides income before tax, net income and earnings per share on
        a non-GAAP basis that excludes non-cash, share-based compensation
        expense and non-cash interest expense on the amortization of the
        beneficial conversion feature for the convertible notes, as described
        below, to enable investors to better assess the Company's operating
        performance. The non-GAAP measures are described below and reconciled
        to the corresponding GAAP measure in the section below titled "About
        Non-GAAP Financial Measures;
    (2) Non-GAAP diluted weighted average shares outstanding were calculated
        based on outstanding shares, issued options, and estimated shares
        under the assumption that they would be converted from our convertible
        debentures based on CREG's estimated 2009 earnings.

Fourth Quarter of 2008

For the fourth quarter of 2008, the Company generated revenue of $12.3 million, compared with $226,348 in the fourth quarter of 2007. Sequentially, revenue grew 189.7% from $4.3 million in the third quarter of 2008. The increase was primarily because of the contribution from product sales.

Product sales contributed $8.0 million, or 65.2% of the total revenue, compared with $226,348 in the fourth quarter of 2007 and zero in the third quarter of 2008; rental income from operational leases at industrial plants in China was $4.3 million, or 34.8% of the total revenue, compared with zero in the fourth quarter of 2007 and $4.3 million in the third quarter of 2008.

Gross profit was $3.1 million, compared with $174,485 in the fourth quarter of 2007 and $1.3 million in the third quarter of 2008. Gross margin was 25.5%, compared with 77.1% in the fourth quarter of 2007 and 30.1% in the third quarter of 2008. The lower gross margin was primarily because of higher costs of the sophisticated waste-to-electricity machinery the Company procures to install and test for its customers.

Interest income from sales-type leases was $569,038, compared with $542, 637 in the fourth quarter of 2007 and $576,817 in the third quarter of 2008.

General and administrative expenses were $630,974, compared with $183,708 in the fourth quarter of 2007 and $638,949 in the third quarter of 2008. The increase over the same period of 2007 was primarily because of the fair value of the stock options to employees, and increased payroll, marketing and traveling expense due to the expansion of our business, as well as general costs of maintaining the status of a public company.

Non-GAAP income before tax, as defined in the "Summary of Financial Results" section, was $3.3 million, or 154% higher than $1.3 million in the third quarter of 2008. GAAP income before tax was $3.1 million, or 158% higher than $1.2 million in the third quarter of 2008.

The Company's effective tax rate was 26.6%, compared with negative 65.7% in the fourth quarter of 2007 and 36.9% in the third quarter of 2008.

Non-GAAP net income was $2.4 million, compared with $828,328 in the third quarter of 2008. Non-GAAP diluted EPS was $0.06, compared with $0.02 in the third quarter of 2008. GAAP net income was $2.3 million, compared with GAAP loss of $170,252 in the fourth quarter of 2007 and GAAP net income of $732,512 in the third quarter of 2008. GAAP diluted EPS was $0.04, compared with GAAP diluted loss per share of $0.02 in the fourth quarter of 2007 and GAAP diluted earnings per share of $0.02 in the third quarter of 2008.

Full Year 2008

For the year 2008, revenue increased 106.5% to $19.2 million, from $9.3 million in 2007. Product sales contributed $8 million, or 41.9% of the total revenue, compared with $9.3 million in 2007, which consisted total revenue. Rental income contributed $11.2 million, or 58.1% of the total revenue, compared with zero in 2007.

Gross profit rose 126.1% to $5.2 million, from $2.3 million in 2007. Gross margin was 27.1%, compared with 24.4% 2007.

Interest income from sales-type leasing was $2.3 million, compared with $1 million in 2007.

General and administrative expenses were $2.8 million, compared with $542,434 in 2007. The increase was primarily because of the non-cash compensation expense of approximately $856,000 related to the fair value of the stock options to employees, increased costs associated with one-time, non-recurring issuance and restructuring of the convertible notes in 2008, and increased payroll, marketing and traveling expense due to the expansion of our business, as well as general costs of maintaining the status of a public company.

Non-GAAP income before tax, as defined in the "Summary of Financial Results" section, was $5.5 million. GAAP income before tax was $3.5 million, compared with $2.7 million in 2007.

The effective tax rate was 47.1%, compared with 20.2% in 2007. The increase was primarily because of higher tax rates applied to the Company's main operating subsidiary in Xi'an as China revalued preferential tax status for high-tech enterprises last year. Given the Chinese government's commitment to renewable energy, the Company is expecting to regain the preferential tax rate, 15%, in the near future.

Non-GAAP net income was $3.9 million, or non-GAAP diluted EPS $0.10. GAAP net income was $1.8 million, or GAAP diluted EPS of $0.03, compared with GAAP net income of $1.9 million, or GAAP diluted EPS of $0.10 in 2007. The lower GAAP net income reflected higher non-cash charges related to convertible notes and stock-based employee compensation, as well as higher tax rate levied in the city of Xi'an. As of December 31, 2008, the Company has total diluted shares outstanding of 59,861,719.

As of December 31, 2008, cash and cash equivalents were $7.3 million, compared with $1.6 million at December 31, 2007. Total investments in sales-type leases were $16.8 million, compared to $9.0 million at December 31, 2007. Net working capital increased to $11.3 million from $7 million at December 31, 2007. The ratio of current debt to current assets is 1.9:1 as of December 31 2008. Total shareholders' equity was $32.4 million, at December 31, 2008 compared with $17.3 million at December 31, 2007.

Other Highlights

On December 10, 2008, the Company received the immediately effective resignation of Mr. Guangyu Wu as Chief Executive Officer, member of the Board of Directors and Corporate Secretary. Also on December 10, 2008, the Board of Directors appointed Mr. Xinyu Peng, the Company's Chief Financial Officer, as Secretary and Guohua Ku, 47, as Chief Executive Officer and as a member of the Board of Directors. Mr. Ku graduated from Northwestern University in China with a Master's of Business Administration. He had served as the senior technology and marketing officer for several large Chinese state-owned companies at which he gained tremendous experience and developed exceptional expertise on the development and operation of energy-recycling programs.

Year 2009 Guidance

The Company expects revenues for 2009 to be in the range of $33 million to $36 million, with net income, excluding non-cash charges, of approximately $8 million. These targets are based on the Company's current views on the operating and market conditions, which are subject to change.

Mr. Ku said, "Looking forward, we are encouraged that the Chinese government has earmarked $31 billion, or 5% of the country's $584-billion stimulus package, for the creation of a sustainable environment. We believe the bulk of the spending will be to reduce the pollution generated by heavy-industrial plants in Northern and Western China, stimulating the growth of the use of low-emission and energy-efficient power generators by our customers in the steel, cement and chemical sectors. Considering this robust market condition, we expect to complete at least 3 projects this year, including Shengwei's phase two which should be completed in the second quarter of 2009, with a projected product sales of approximately $8 million and additional interest income of approximately $1 million in 2009."

Conference Call

The Company will host a conference call on Tuesday, March 24, 2009, at 8:30 a.m. Eastern Daylight Time / 8:30 p.m. Beijing Time. Interested parties may participate in the conference call by dialing +1-877-407-8035 (North America) or +1-201-689-8035 (International) 10 minutes before the call start time.

A replay of the call will be available through Tuesday, March 31, 2009, at 11:59 p.m. Eastern Daylight Time. Interested parties may access the replay by dialing +1-877-660-6853 (North America) or + 1-201-612-7415 (International) and entering account number: 286 and conference ID number: 315790.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for earnings that exclude the effect of non-cash, non-operating expenses related to the Convertible Notes issued in November 2007 and April 2008, respectively, as well as the compensation expenses for the fair value of stock options. The Company uses non-GAAP financial measures when it internally evaluates the performance of its business and makes operating decisions, including internal budgeting and performance measurement. The Company believes that providing the non-GAAP measures is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand CREG's financial performance in comparison to historical periods, and it allows investors to evaluate CREG's performance using the same methodology and information as that used by the Company's management. However, investors need to be aware that non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP, and they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure.

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB - News; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic and annual reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

                          FINANCIAL TABLES TO FOLLOW


             CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS



                                                   AS OF            AS OF
                                                 31-Dec-08        31-Dec-07
    ASSETS

    CURRENT ASSETS
    Cash & cash equivalents                 $     7,267,344  $     1,634,340
    Investment in sales type leases, net          1,970,591        1,081,981
    Interest receivable on sales type lease          82,406          144,262
    Prepaid expenses                              3,849,087               --
    Other receivables                               102,850           32,902
    Inventory                                    10,534,633        9,870,315
    Total current assets                         23,806,911       12,763,800

    NON-CURRENT ASSETS
    Investment in sales type leases, net         14,837,879        7,933,780
    Advance for equipment                         2,642,889        2,467,579
    Property and equipment, net                      95,359               --
    Construction in progress                      3,731,016               --
    Intangible assets, net                            3,482            6,169

    Total non-current assets                     21,310,625       10,407,528
    TOTAL ASSETS                                 45,117,536       23,171,328

    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES
    Accounts payable                              1,186,902        2,298,201
    Unearned revenues                               658,415               --
    Tax payable                                   2,137,356          534,522
    Accrued liabilities and other payables        3,528,527        2,565,726
    Advance from management                              --           71,508
    Convertible notes, net of discount due
     to beneficial conversion feature             5,000,000          315,068
    Total current liabilities                    12,511,200        5,785,025

    ACCRUED INTEREST ON CONVERTIBLE NOTES           168,494           63,014
    CONTINGENCIES AND COMMITMENTS
     MINORITY INTEREST                               16,179           15,080

    STOCKHOLDERS' EQUITY
    Common stock, $0.001 par value;
     100,000,000 shares authorized,
     36,425,094 and 25,015,089 shares
     issued  and outstanding as of
     December 31, 2008 and 2007,
     respectively                                    36,425           25,015
    Additional paid-in capital                   30,475,360       19,070,908
    Statutory reserve                             1,319,286          832,467
    Accumulated other comprehensive income        3,582,587        1,718,260
    Accumulated deficit                          (2,991,995)      (4,338,441)
    Total stockholders' equity                   32,421,663       17,308,209

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                      45,117,536       23,171,328



             CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS

                          FOR THE YEARS ENDED 12/31   FOR THE QUARTER ENDED
                               2008        2007      12/31/2008    9/30/2008
    Revenue
    Sales of products     $  8,048,956 $ 9,302,347  $ 8,048,956  $        --
    Rental income           11,168,707           -    4,292,484    4,259,807

    Total revenue           19,217,663   9,302,347   12,341,440    4,259,807

    Cost of sales
    Cost of products         6,191,505   7,033,400    6,191,505           --
    Rental expense           7,810,231          --    3,000,220    2,977,402

    Total cost of sales     14,001,736   7,033,400    9,191,725    2,977,402

    Gross profit             5,215,927   2,268,947    3,149,715    1,282,405

    Interest income on
     sales-type leases       2,285,582   1,015,712      569,038      576,817

    Total operating income   7,501,509   3,284,659    3,718,753    1,859,222

    Operating expenses
    General and
     administrative
     expenses                2,773,702     542,434      630,974      638,949

    Total operating
     expenses                2,773,702     542,434      630,974      638,949

    Income from operations   4,727,807   2,742,225    3,087,779    1,220,273

    Non-operating income
     (expenses)
    Investment income               --          --            9           17
    Interest income             27,033          --       27,033
    Interest expense on
     convertible note       (1,314,689)   (377,402)     (80,725)     (57,029)
    Finance expense                 --          --         (201)        (990)
    Other income               108,999          --      108,999           --
    Other expense                 (811)    (48,562)          (1)        (248)
    Exchange loss              (82,237)         --         (268)      (1,524)

    Total non-operating
     expenses               (1,261,705)   (425,964)      54,846      (59,774)

    Income before income
     tax                     3,466,102   2,316,261    3,142,625    1,160,499

    Income tax expense       1,632,754     466,647      836,296      427,960

    Net income from
     continuing operations   1,833,348   1,849,614    2,306,329      732,539

    Income from
     discontinued
     operations                     --      28,699           --           --

    Less: minority
     interest                       83          --           --           27

    Net income               1,833,265   1,878,313    2,306,329      732,512

    Other comprehensive
     item
    Foreign currency
     translation gain        1,864,327     680,586      (53,909)     807,806

    Comprehensive income     3,697,592   2,558,899    2,252,420    1,540,318

    Basic weighted average
     shares outstanding     32,095,814  18,160,385   36,425,094   36,425,094
    Diluted weighted
     average shares
     outstanding            59,861,719  18,855,897   36,997,300   36,997,300

    Basic net earnings per
     share                        0.06        0.10         0.07         0.02
    Diluted net earnings
     per share                    0.03        0.10         0.04         0.02

    * Interest expense on convertible notes are added back to net income for
      the computation of diluted EPS.
    * Diluted weighted average shares outstanding includes estimated shares
      will be converted from the Second Note issued on Apr 29, 2008 with
      conversion price contingent upon future net profits.



             CHINA RECYCLING ENERGY CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                  FOR THE YEARS ENDED 12/31
                                                      2008           2007

    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                     $1,833,265     $1,878,313
    Adjustments to reconcile net income to net
     cash
    Used in operating activities:
    Depreciation and amortization                      18,079             --
    Amortization of discount related to
     conversion feature of convertible note         1,212,329        315,068
    Stock option compensation expense                 856,207        171,510
    Accrued interest on convertible notes             105,480         63,014
    Minority interest                                      83         14,463
    (Increase) decrease in current assets:
    Interest receivable on sales type lease            61,856       (144,262)
    Prepaid equipment rent                         (3,796,985)            --
    Other receivables                                 (66,659)       212,288
    Advances to suppliers                                  --     (1,590,891)
    Increase (decrease) in current liabilities:
    Accounts payable                               (1,245,854)     2,204,167
    Unearned revenue                                  647,948             --
    Advance from customers                                 --       (179,787)
    Tax payable                                     1,530,420        523,190
    Accrued liabilities and other payables            802,165      1,530,382

    Net cash used in operating activities           1,958,334      4,997,455

    CASH FLOWS FROM INVESTING ACTIVITIES:
    Investment in sales type leases                (7,063,105)    (8,640,969)
    Acquisition of property & equipment              (115,350)            --
    Construction in progress                       (3,717,743)            --

    Net cash used in investing activities         (10,896,198)    (8,640,969)

    CASH FLOWS FROM FINANCING ACTIVITIES:
    Issuance of common stock                        9,032,258             --
    Convertible notes                               5,000,000      5,000,000
    Repayment to management                           (75,108)            --
    Advance from shareholder                               --         68,583

    Net cash provided by financing activities      13,957,150      5,068,583

    EFFECT OF EXCHANGE RATE CHANGE ON CASH &
     CASH EQUIVALENTS                                 613,718        (42,729)

    NET INCREASE (DECREASE) IN CASH & CASH
     EQUIVALENTS                                    5,633,004      1,382,340

    CASH & CASH EQUIVALENTS, BEGINNING OF YEAR      1,634,340        252,000

    CASH & CASH EQUIVALENTS, END OF YEAR            7,267,344      1,634,340

    Supplemental Cash flow data:
    Income tax paid                                   152,881             --
    Interest paid                                          --             --



    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In the U.S.:
     Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: vding@hfgcg.com

The Company will host a conference call, to be simultaneously Webcast, on Tuesday, March 24, 2009, at 8:30 a.m. Eastern Daylight Time / 8:30 p.m. Beijing Time. Interested parties may participate in the conference call by dialing 1-877-407-8035 (North America) or +1-201-689-8035 (International) approximately 10 minutes before the call start time. A live Web cast of the conference call will be available on the Company's Website at http://www.creg-cn.com .

A replay of the call will be available through Tuesday, March 31, 2009 at 11:59 p.m. Eastern Daylight Time. Interested parties may access the replay by dialing 1-877... (North America) or +1-20... (International) and entering account number 286 and conference ID number 315790. An archived Webcast of the conference call will be available on the Company's Website at http://www.creg-cn.com .

Today's announcement replaces an earlier version on the fourth quarter 2008 earnings date.

About China Recycling Energy Corp.

China Recycling Energy Corp. ("CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

For more information about CREG, please visit http://www.creg-cn.com .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    In China:
     Mr. Leo Wu
     Investor Relations
     China Recycling Energy Corp.
     Email: tch@creg-cn.com

    In the U.S.:
     Mr. Valentine Ding
     Investor Relations
     Grayling
     Tel:   +1-646-284-9412
     Email: vding@hfgcg.com