China Valves Technology Signs Supply Agreements with Five Demonstration Projects for Ultra-Supercritical Thermal Power Plants

ZHENGZHOU, China, June 2, 2011 /PRNewswire-Asia/ -- China Valves Technology, Inc. (NASDAQ: CVVT) ("China Valves" or the "Company"), a leading Chinese metal valve manufacturer, today announced that with guidance and coordination from The Bureau of National Energy of China, the Company's subsidiary Henan Kaifeng High Pressure Valve Co., Ltd. ("Kaifeng Valve") has signed research and development agreements with another four demonstration projects, Jiangshu Jurong Power Plant, Chongqing Shuanghuai Power Plant, Henan Sanmenxia Power Plant and Jiaozhou Longyuan Power Plants, to supply main stream valves, hydraulic inlet/outlet three-way valves, extraction check valves, and turbine vacuum butterfly valves for use in 1,000 MW ultra-supercritical power plants.

As disclosed previously, Kaifeng Valve has been approved by the State Council as a key provider for the localization of high-performance valves for thermal power plants. Currently, there are 11 research projects for ultra-supercritical valves to be localized or manufactured by local companies for thermal power plants, of which Kaifeng Valve has undertaken seven of them.

"These new agreements highlight Kaifeng Valves' technological innovation and key position in China's thermal power valve market. Building upon our success with Nantong Power Plant earlier this year, we continue to make progress in our efforts to replace imported valves in ultra-supercritical thermal power plants with domestic products," said Jianbao Wang, Chief Executive Officer of China Valves. "These four plants, together with Nantong Power Plant, are all key leading plants for the localization of key components. We expect to supply approximately $50 million of high end valves to these five plants over the next two years.  We remain confident in achieving our revenue growth and gross margin projections"

About China Valves Technology, Inc.

China Valves Technology, Inc. through its subsidiaries, Zhengzhou City ZD Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., Tai Zhou Taide Valve Co., Ltd., Yangzhou Rock Valve Lock Technology Co., Ltd., China Valve Technology (Changsha) Valve Co., Ltd. and Shanghai Pudong Hanwei Valve Co., Ltd., is engaged in the development, manufacturing and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best known brand names in China's valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products through extensive research and development and owns a number of patents. It enjoys significant domestic market share and exports to Asia and Europe. For more information, visit http://www.cvalve.com

Safe Harbor Statements

Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise. This press release was developed by China Valves, and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company's stock. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.