Attention Business Editors

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.

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/For further information: Ali Mahdavi, Zongshen PEM Power Systems Inc.,

Vice President, Corporate Finance & Investor Relations, (416) 962-3300,

1-877-775-8734, [email protected]; E-mail: [email protected],

Website: www.zongshenpem.com/