DGAP-News

United Power Technology AG: Expansion of the production site reaches final stage of construction and substantiates growth strategy - Seite 2

buildings of our phase 3 expansion plan continues according to plan and
within budget. The new production lines will offer us a stronger market
position, once our overall market situation improves. Therefore, it is an
important step in our future growth strategy and will make us an even
stronger business-partner with reliable high-quality products."

The project lays the foundation for United Power's further pursuit of its
three-pronged strategy for future growth. Thereby, United Power focuses on
scaling up product sizes and generators with higher output and larger
engine sizes. Furthermore, it aims at a broadened range of different
engine-powered products and on geographic expansion as well as penetration
by further diversifying its international customer base and by
strengthening its brand in new markets. In addition, the Management Board
has also devised regional sales strategies and implemented different
measures to support its sales forces.

Although the market environment currently continues to be difficult, there
remain to be good growth prospects in other new growth regions,
particularly in markets such as Latin America and Southeast-Asia, which
United Power aims to take advantage of. Furthermore, the Management Board
expects the consolidation process of the industry in China as well as the
conflict in Russia, both mainly responsible for the decrease in revenues,
to be of a timely limited nature. Therefore the expanded production site
will serve as an ideal platform for an upswing in the industry and provide
United Power with a strong market position.

About United Power Technology Group

United Power Technology Group designs, develops, manufactures and sells
engines and an extensive range of engine-driven power equipment, including
generators, outdoor power equipment, as well as components. Its major
products comprise residential as well as commercial generators, which are
currently delivered to end users in around 70 countries around the world.
The operational companies of United Power Technology Group are incorporated
under the laws of the People's Republic of China and located in Fuzhou and
Shanghai, China.

For further requests please contact:
Kirchhoff Consult AG
Andreas Friedemann
T: [phone]
F: [phone]
E-Mail: [e-mail]
or visit www.unitedpower.de.com

Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking
statements are statements that are not historical facts instead they