SOURCE: Asia Electrical Power International Group, Inc.

May 19, 2008 09:15 ET

Asia Electrical Power Reports Financial Results for First Quarter 2008

LAS VEGAS, NV--(Marketwire - May 19, 2008) - Asia Electrical Power International Group, Inc. (OTCBB: AEPW) ("Asia Electrical"), a leading manufacturer of secondary electrical power systems in China, today reported financial results for its first quarter ended March 31, 2008.

Revenues for the first quarter ended March 31, 2008 totaled $2.54 million, up 31% from $1.94 million in the first quarter of 2007. The Company said the increase was due primarily to the ten-fold increase in production capacity after moving into its new industrial park, establishing 45 new branch offices and marketing initiatives in international markets.

Net income applicable to common shares for the quarter ended March 31, 2008 was $127,426 compared to net income of $174,477 in the first quarter of 2007. The decrease in net income was attributed to one-time costs associated with the opening of new sales offices, moving and equipment installation and depreciation/amortization expenses associated with moving into the new building and land costs in 2007.

Looking forward, the Company announced it expects an increase in revenues as a result of orders from the Chinese government granted during the quarter as well as additional orders expected to be granted throughout the year. The orders were for secondary electrical power systems components and complete-set equipment to be used to restore and upgrade the damaged and antiquated electrical grids in numerous provinces throughout China. The company is one of only a select number of electrical component manufacturers in China to have been granted the designated manufacturer status and received certification as a "Key Manufacturer" by the National Power Authority of China. An initial order of $7 million indicates the Company has an important part to play in the initial phase of the restoration and rebuilding of the electrical power grid in China. The orders are expected to be completed and delivered this year.

Commenting on today's financial report and outlook, Yulong Guo, Asia Electrical Power's Chairman and Chief Executive Officer, said, "We have achieved ambitious goals of opening 45 new sales offices and moving in our brand new industrial park. The big increase in revenue is a clear indication of the level of demand for our products. With our greater presence throughout the country and our significantly enhanced sales force, we anticipate continued double digit growth rates for the foreseeable future."

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About Asia Electrical Power

Asia Electrical Power International Group, Inc., through its wholly-owned subsidiary Asia Electrical Power Co. Ltd., is a leading manufacturer of secondary electrical power systems in China. The Company is a high technology enterprise dedicated to manufacturing the finest components in secondary electrical power systems, such as cabinet-type electric substations, outdoor switching-mechanisms, cable feeder pillars and switching elements, and to becoming a leading global player in the sales of high, medium and low voltage, complete-set equipment. The Company has a proven track record of robust growth and a promising outlook for substantial earnings growth through expanded market penetration as well as investment in the exploding electrical power industry sector throughout China, elsewhere in Asia and beyond to the Americas. For additional information, please visit

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, uncertainties in product demand, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

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