TSX Approves Zongshen PEM Power Systems Inc.’s Normal Course Issuer Bid

Zongshen PEM Power Systems Inc., announced that it has received the approval of The Toronto Stock Exchange (“TSX”) to make a Normal Course Issuer Bid (the “Bid”) to purchase through the facilities of the Exchange, from time to time, as it considers advisable, up to 3,065,211 of the issued and outstanding Common Shares (being approximately 5% of the 61,304,230 Common Shares outstanding at November 3, 2008).

The Bid will commence on November 17, 2008 after the filing of the Company’s third quarter financial statements and terminate on the earlier of (i) November 16, 2009, (ii) the date on which ZPP acquires all of the shares sought pursuant to the Bid or (iii) the date the Company provides notice of the termination of the Bid. The price which ZPP will pay for any shares purchased by it will be equal to the prevailing market price of such shares on the Exchange at the time of purchase. Any shares acquired by ZPP pursuant to the Bid will be cancelled.

Under the Bid, the Company will not purchase more than 21,472 shares on any trading day (representing 25% of the average trading volume since the Company graduated onto the TSX), subject to block purchase exceptions and any temporary relief granted by the TSX.

The Board of Directors of ZPP believes that the Bid is in the best interests of ZPP and that the Bid constitutes a desirable use of ZPP’s funds.

About Zongshen PEM Power Systems Inc.

Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the Toronto Stock Exchange. The Company is engaged in the commercialization of alternative power systems including batteries, fuel cells and solar power, for a variety of consumer and industrial applications. The Company manufactures low-cost, high quality, environmentally friendly small gas motorbikes, electric motorcycles, electric bicycles and other e-vehicles in China for the Chinese domestic and international markets. Zongshen PEM Power System’s largest shareholder is Zongshen Industrial Group, one of China’s largest manufacturers and distributors of motorcycles, engines, and power equipment.

About Zongshen Industrial Group

Zongshen Industrial Group was founded in 1992, and now consists of 30 totally or majority owned subsidiaries including Chongqing Zongshen Power Machinery Co., which is listed on the Shenzhen Stock Exchange. The Company employs in excess of 13,000 employees with assets in excess of RMB 8.4 billion yuan. Zongshen Industrial Group implements the development strategy of related diversification within thermodynamic machinery industry. Its engine products mainly include motorcycle engines, mini-car engines, speedboat engines, and general-purpose machinery. Its end products mainly include motorcycles, speedboats and other power equipment. Zongshen Industrial Group now has an annual production capacity of 2,000,000 motorcycles, 50,000 mini vans, 3,000,000 motorcycle engines, 5,000,000 general-purpose engines, and 100,000 car engines. Zongshen Industrial Group has established a leading brand for motorcycles in China attracting some of the world’s largest motorcycle manufacturers as joint venture partners.