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SmartHeat Inc. Acquires German Heat Pump Manufacturer

NEW YORK Jan. 25, 2011 China Europe China

Germany Austria

China China Europe

James Wang Europe China the United States China China

Germany Beijing, China

About GWP

GWP has 20 years of history in clean energy systems, including heat pumps and related systems. GWP’s strengths are in developing high efficiency compact heat pumps providing heating, cooling and hot water for family houses and engineered solutions for commercial buildings.

About SmartHeat Inc.

James Jun Wang www.smartheatinc.com China China China China China $2.4 billion

About Conergy AG

Germany

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company’s expectations. SmartHeat’s actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect SmartHeat’s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in SmartHeat’s filings with the Securities and Exchange Commission.

Corporate Communications Contact:

Ms. Jane Ai, Corporate Secretary

SmartHeat Inc.

Tel: 011-86-24-25363366

Email: [email protected]

SOURCE SmartHeat Inc.

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