BUSINESS WITH NEW STREAMLINED STRUCTURE

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accelerate growth of renewable energy businessCorporate streamlining to better align resources for future expansion and

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2009First two biomass plants on track for completion by 2008 while the third by

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businessCompletion of S$50 million Convertible Bonds Issue for expansion of energy

Singapore, 13 June 2007 ?

Group?), a pioneer in the renewable energy sector in Asia, has initiated a corporate

streamlining exercise to facilitate the Group?s future expansion plans in the growing

renewable energy business. Under the streamlined structure, the Group?s wholly owned

subsidiary Renewable Energy Holdings Pte Ltd (?REH?) will hold all biomass-to-energy

projects, including the Huizhou waste-to-energy project, with a paid up capital of S$43

million. With REH as the lead vehicle of the Group?s renewable energy business, the

Group will be better positioned to tap the capital markets more efficiently and effectively

as well as provide more flexibility to future expansions.China EnerSave Limited (?China EnerSave? or ?The

?The streamlining exercise will clearly identify the Group as a serious player in

the renewable energy business, with a sharpened business focus and enhanced

market credibility. In addition, the synergies offered from the streamlining

would enable China EnerSave to align its resources efficiently and accelerate

the growth of its renewable energy business. This is also in line with the

Group?s vision to become a major provider of renewable energy in Asia.?

- Mr Simon Koo, Chief Executive Officer of China EnerSave

Currently, China EnerSave has three 24MW biomass plants under development in

Changyi (Shandong Province), Neijiang (Sichuan Province) and Dujiangyan (Sichuan

Province) respectively. The Changyi biomass plant project has already commenced

China EnerSave Spearheads Renewable Energy Business

With New Streamlined Structure

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construction with China Huadian Corporation ? a leading player in China?s energy

industry, as the appointed turnkey contractor and Dongfang Boiler Group Co Ltd

(?Dongfang?) ? a leading boiler manufacturer in China, as the designated boilers supplier.

The project is expected to be completed in the second half of 2008.

At the same time, the Group is finalizing its land purchase for its Neijiang biomass

project, which is targeted for completion towards the end of 2008. China State

Construction Corporation (?CSC?), a leading player in the power plant construction

industry in China, has been appointed as the turnkey contractor while Dongfang will be

supplying the boilers for this project.

The Group is still awaiting the grant of the final permit from the provincial China

authorities for the biomass project at Dujiangyan before inviting tenders for the project

construction. The permit is expected to be granted within the next three months before

the Group proceeds to purchase the site land for this project.

With the construction of the first two biomass plants on track for completion by 2008

and the third by 2009, China EnerSave also has plans to acquire attractively priced coalfired

power plants for conversion into biomass power plants to accelerate its renewable

energy business. The Group has also recently completed its S$50 million Convertible

Bonds Issue (coupon rate of 1.5%, due 2010) to Credit Suisse (Singapore) Limited,

Stark Master Fund Ltd and Centar Investment (Asia) Ltd. The bulk of the proceeds from

this bonds issue will be used for investments in its energy projects. Together with the

new streamlined structure, the Group is now better positioned to leverage on the

growing renewable energy market in China.