A-Power Signs Conversion Agreements

A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) ("A-Power" or the "Company"), a leading provider of distributed wind power generation ("DG") systems in China and a fast-growing manufacturer of wind turbines, today announced that it has signed conversion agreements with the holders of its convertible notes issued on June 19, 2009.

Pursuant to the Conversion Agreements, the Company and each of the noteholders have agreed, among other things, to convert the aggregate principal amount and accrued interest of $37,537,500 outstanding under the convertible notes, together with make-whole amounts, into an aggregate of 4,582,559 common shares of the Company using a conversion price per share set at $10.212, which is 96% of the original conversion price of the convertible notes of $10.637.

Common shares of the Company issuable upon conversion of the Notes are freely tradable by the noteholders. Each of the noteholders has entered into a Confirmation Letter with the Company confirming certain procedural and other aspects of the transaction.

"We are pleased that the holders of these convertible notes have elected to convert their notes in full," stated Mr. Jinxiang Lu, A-Power’s Chief Executive Officer. "As a result of this conversion of the convertible notes, the Company strengthens its balance sheet by replacing debt with equity."

A-Power Energy Generation Systems Ltd. ("A-Power"), through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25 MW to 400 MW. In 2008, A-Power entered the wind energy market and has built China’s largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with technologies licensed from German FUHRLANDER AG and Denmark-based Norwin, and a total annual production capacity of 1,125 MW. In March 2009, A-Power entered into an agreement to establish a Joint Venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang. A-Power also has strategic relationships with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou to develop and commercialize other renewable energy technologies.