Zongshen PEM Power Systems Inc. to Commence Trading on the Toronto Stock Exchange

Zongshen PEM Power Systems Inc., announced today that its common shares have been conditionally approved for listing on the Toronto Stock Exchange and is expected to commence trading on or about Tuesday, September 2, 2008 at the market opening under the symbol “ZPP”. “Our graduation to Canada’s senior exchange is a reflection of the continued growth of ZPP’s business.” said Zongshen Zuo, Chairman and CEO of Zongshen PEM Power Systems Inc. “The graduation to the TSX main board fulfills a major corporate objective management had set for the year.”

About Zongshen PEM Power Systems Inc.

Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the TSX Venture 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.