NF Energy Saving Corporation Obtains New $2 Million Energy Efficient Lighting Lamps Project

NF Energy Saving Corporation of America, a Chinese leader in energy efficient flow control systems and energy efficiency projects, today announced the company has successfully completed the sale of 500,000 energy efficient lighting lamps, and is starting up the 2nd batch of 2 million energy efficient lighting lamps in June 2009. Total contract value amounts to US$2.34 million and revenue to be recognized in 2009 per US GAAP will be US$2.00 million.

NF Energy is the only commercial distributor of energy efficient lighting lamps in Liaoning province where the provincial government is targeting 2.5 million bulb installations for 2009.

Company was commissioned by Liaoning Provincial Economic Committee to promote high-efficiency energy saving lamps to end users in Liaoning Province. This indicates Chinese government’s endorsement of NFES’ leading position in China’s energy-saving industry and also creates a new source of revenue for NFES.

As an important part of China’s energy saving and pollution reduction policies, the Chinese government plans to install 150 million pieces of high- efficiency energy saving lamps to replace incandescent lamps and other low- efficiency lighting products nationwide during the years 2006 through 2010, or the “Eleventh Five-Year Plan” period. According to the latest statistics, the high-efficiency lighting products are able to reduce electric power costs of 60% to 80% and last 4 to 6 times longer. The installation of 150 million high- efficiency energy saving lamps will result in a reduction of national annual electric power consumption by 29 billion kilowatts, carbon dioxide annual emission by over 29 million tons, and sulfur dioxide annual emission by 290 thousand tons. The government will provide 30% rebate to bulk purchasers and 50% rebate to general citizens.

“We are honored to be commissioned by Liaoning Provincial Economic Committee to promote high-efficiency energy saving lamps in Liaoning province. This indicates that the government regards our leading position in the energy saving industry,” said Mr. Gang Li, the Chairman and CEO of the Company. “Energy conservation and pollution reduction is one of the most important tasks for the Chinese government. China’s energy saving market is huge. As one of the earliest energy saving solution providers in China, our Company will try our best to engage in the Chinese government’s energy conservation and pollution reduction work. I believe this work will increase our energy saving business and bring returns to our shareholders and investors.”