China Recycling Energy Corp. ("CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced it has signed a strategic partnership agreement with China Aviation Gas Turbine Co., Ltd. ("CAGT") for technological research and equipment manufacturing related to electric power generation using waste gas at steel mills and coking factories in China.

According to the contract, CREG will collaborate with CAGT, one of China's leading aeronautical power technology firms, to develop technologies and equipment for blast furnace top-gas recovery turbines and combined cycle power plants, which are systems that generate electricity by burning waste gas emitted during the iron-and-steel-making process.

"We are honored to be a strategic partner of China Aviation Gas Turbine," said Mr. Guangyu Wu, CEO of CREG. "With our experience in industrial waste- to-energy, CAGT’s space technology can further help us penetrate our marketplace and expand our competitive advantages."

About China Aviation Gas Turbine Co., Ltd.

China Aviation Gas Turbine Co., Ltd. ("CAGT") was created by China Aviation Investment Co., Ltd., Shenyang Liming Aero-Engine (Group) Corporation Ltd., Xi’an Aero-Engine (Group) Ltd., and 10 other aerospace technology and investment entities in December 2002. Based in Shenyang City, the capital of Liaoning Province in Northeast China, CAGT seeks to meet the market demands of electric power generation with advanced gas turbines developed using proprietary aeronautical power technology.

Its main businesses include: 1) Gas Turbine Packages; 2) Gas Turbine Driving Power Engineering Services; and 3) Machinery & Electronic Equipment. CAGT's main customers are in aerospace, petrochemical, railroad, nuclear power, metallurgy and coking industries.