TSX:ZPP
VANCOUVER, March 2 /CNW/ - Zongshen PEM Power Systems Inc. ("ZPP" or the
"Company") (TSX: ZPP) announced today that Dr. Jinzhu (Jim) Wei has resigned
as a director of the Company effective today. Furthermore, the Company also
reported that effective immediately it has suspended all research and
development initiatives for the development of hydrogen fuel cell technology
since the Company believes it can a earn better return on capital by focusing
on licensing and improving existing commercialized battery technologies. The
high cost of manufacturing associated with hydrogen fuel cells and lack of a
hydrogen refuelling infrastructure are barriers to near term
commercialization. In 2008, the Company invested approximately $250,000 in
hydrogen fuel cell R&D.
"On behalf of the Board of Directors and the management team, I would
like to thank Jim for his expertise and commitment to the development of
hydrogen fuel cell technology while at ZPP and wish him the best of luck in
his future endeavours," noted Zongshen Zuo, Chairman and Chief Executive
Officer of Zongshen PEM Power Systems Inc. "We remain focused on the exploring
and the development of leading edge battery and electric technologies to
support the ongoing growth of ZPP's e-vehicle product portfolio. However, at
this time we have decided that the market opportunity for proven technologies
in the battery field could generate more attractive returns for all of our
stakeholders with less capital requirements and expenses".
ZPP continues to focus on the organic growth of its electric bikes and
small low emission gas bikes with over 227,000 units sold in fiscal 2008.
Furthermore, the Company remains committed to explore acquisition and
strategic partnership opportunities to further strengthen and accelerate its
market share of electric and low emission bikes.
About Zongshen PEM Power Systems Inc.
Zongshen PEM Power Systems Inc. is a public company trading under the
symbol ZPP on the Toronto Stock Exchange. The Company is engaged in the
commercialization of alternative power systems including batteries, fuel cells
and solar power, for a variety of consumer and industrial applications. The
Company manufactures low-cost, high quality, environmentally friendly small
gas motorbikes, electric motorcycles, electric bicycles and other e-vehicles
in China for the Chinese domestic and international markets. Zongshen PEM
Power System's largest shareholder is Zongshen Industrial Group, one of
China's largest manufacturers and distributors of motorcycles, engines, and
power equipment.
About Zongshen Industrial Group
Zongshen Industrial Group was founded in 1992, and now consists of 30
totally or majority owned subsidiaries including Chongqing Zongshen Power
Machinery Co., which is listed on the Shenzhen Stock Exchange. The Company
employs in excess of 13,000 employees with assets in excess of RMB 8.4 billion
yuan. Zongshen Industrial Group implements the development strategy of related
diversification within thermodynamic machinery industry. Its engine products
mainly include motorcycle engines, mini-car engines, speedboat engines, and
general-purpose machinery. Its end products mainly include motorcycles,
speedboats and other power equipment. Zongshen Industrial Group now has an
annual production capacity of 2,000,000 motorcycles, 50,000 mini vans,
3,000,000 motorcycle engines, 5,000,000 general-purpose engines, and 100,000
car engines. Zongshen Industrial Group has established a leading brand for
motorcycles in China attracting some of the world's largest motorcycle
manufacturers as joint venture partners.
-30-
/For further information: Ali Mahdavi, Zongshen PEM Power Systems Inc.,
Vice President, Corporate Finance & Investor Relations, (416) 962-3300,
1-877-775-8734, amahdavi@zongshenpem.com; E-mail: zspem@zongshenpem.com,
Website: www.zongshenpem.com/
