China Recycling Energy's Shanghai TCH, Xi'an TCH & Erdos TCH Qualified as "Energy Saving Service Provider" by NDRC & MOF

XI'AN, China, August 24, 2011 /PRNewswire-Asia/ -- China Recycling Energy Corp. (NASDAQ: CREG or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that its wholly owned subsidiaries, Shanghai TCH Energy Technology Co., Ltd. ("Shanghai TCH"), Xi'an TCH Energy Technology Co., Ltd ("Xi'an TCH"), and Erdos TCH Energy Saving Development Co., Ltd ("Erdos TCH") have each been named as a qualified "Energy Saving Service Provider" by China's National Development and Reform Commission (NDRC) and Ministry of Finance (MOF). With this designation, they are now eligible to receive incentive financial awards from the MOF for energy management contract (the "EMC") projects signed from July 1, 2011 onward.

Based on the PRC State Council gazette number 2010 (25), and Joint Gazette number 2010 (110) of State Administration of Taxation and Ministry of Finance, companies are awarded fiscal incentives for carbon emission reduction as a result of their energy savings efforts. These incentives include preferential tax treatment and tax holidays to qualified Energy Saving Service Providers ("Service Providers"), specifically, the suspension of a business tax for its qualifying EMC projects, and an income tax holiday for its qualified EMC projects that exempts the Service Provider's income tax for the first three years in operation, beginning from the tax year when the EMC project receives its first operating income and then provides a 50% income tax reduction for the next three years, from year 4 to year 6.

Mr. Guohua Ku, Chief Executive Officer of CREG, commented, "The recognition of our TCH group of companies as qualified energy saving service providers, now eligible for government endorsed financial incentives tied to our energy reduction efforts is an extremely momentous occasion for our company and our work. Striving to succeed in meeting our energy reduction objectives for our customers, including Erdos Metallurgy, had led to our success in meeting this 'Energy Saving Service Provider' standard employed by the NDRC and MOF. We are pleased to join other qualified companies in further reducing our carbon footprint and yielding better energy savings for our customers."

About China Recycling Energy Corp.

China Recycling Energy Corp. (NASDAQ: CREG or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://www.creg-cn.com.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.