China Recycling Energy Corp. Announces Preliminary Financials for First Quarter 2008 and Provide Guidance for FY 2008 and 2009

XI'AN, China, May 14 /Xinhua-PRNewswire-FirstCall/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG) ("CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced its preliminary financials for the first quarter of 2008 and full year guidance for fiscal year 2008 and 2009.

In the first quarter of 2008, the Company's total revenue was around US$ 0.56 million. For the full year of 2008, revenue is expected to be in the range of US$17 million to US$19 million, and net income to be between US$4.5 million to US$5 million. For full year 2009, revenue will reach the range of US$33 million and US$36 million, net income excluding non cash items will be around US$10 million.

"We are very excited about the growth prospect of our businesses in China, as more and more industrial companies are under tremendous pressure with mounting utility bills and tightening pollution regulations," said Mr. Guangyu Wu, CEO of CREG. "We provide a one-stop solution for many fast-growing Chinese steel mills and cement factories to improve energy efficiency and expand recycling program."

The company is scheduled to report the first quarter financial results on May 15, 2008 after the market closes.

About China Recycling Energy Corp.

China Recycling Energy Corp. (OTCBB: CREG.OB) ("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.