Hong Kong Highpower Technology Announces Groundbreaking on New Ni-MH Battery Manufacturing Facility

Hong Kong Highpower Technology, Inc., a developer, manufacturer and marketer of nickel-metal hydride (Ni-MH) and lithium-ion (Li-ion) batteries and related products, today announced the groundbreaking of its new Ni-MH battery manufacturing facility in Huizhou, Guangdong Province, China and commencement of building construction on site plans that have been environmentally certified.

In February 2007, the Company acquired approximately 1.36 million square feet of land equity in the Industry Development Zone, New Lake, MaAn Town, HuiCheng District, Huizhou, Guangdong, China for a total of RMB26 million. The land use right grant related to this property permits the Company to develop the land and construct buildings for industrial applications and includes rights to transfer or rent the land and use it as collateral as needed.

Hong Kong Highpower Technology currently manufactures Ni-MH and Li-ion batteries and products from its main factory located in Shenzhen, Guangdong Province. Construction of the new facility in Huizhou is expected to be completed during the fourth quarter of 2009, at which time the Company will move its entire manufacturing operations to the new location.

“Our new state-of-the-art facility will provide three times our current manufacturing capacity, which translates to a potential increase in production capacity from approximately 600,000 pieces per day to 1.6 million pieces per day,” said George Pan, Chairman and Chief Executive Officer of Hong Kong Highpower Technology. “We have already received environmental certification from the Chinese government and expect that construction will proceed seamlessly through to completion and pilot production by year-end 2009.”

Hong Kong Highpower Technology develops, manufactures and markets rechargeable nickel metal hydride (Ni-MH) and lithium-ion (Li-ion) batteries and related products for use in a variety of electronic devices. The majority of Hong Kong Highpower Technology’s products are distributed worldwide to markets in the United States, Europe, China, Hong Kong, Southeast Asia and Taiwan. For more information, visit http://www.haopengbattery.com.