Zongshen Zuo Appointed As Chief Executive Officer of Zongshen PEM Power Systems, Inc.

March 3, 2008 - Vancouver, British Columbia - Zongshen PEM Power Systems Inc. ("ZPP" or the "Company") (TSXV:ZPP), is pleased to announce the appointment of Mr. Zongshen Zuo to Chief Executive Officer, effective immediately. Mr. Zuo will continue his role as the Chairman of the Board of Directors of the Company. As Chief Executive Officer, Mr. Zuo will be responsible for developing the Company's growth strategy in consultation with the Board of Directors and ensuring that ZPP has access to the resources and support of the Zongshen Industrial Group as set out in the Master Support Agreement (see press release dated January 7, 2008.) Mr. Yao Li has resigned as Chief Executive Officer and will continue his responsibilities as the President of ZPP with greater focus and attention on operations and international business development.

Mr. Zuo and Mr. Li have both agreed to annual cash compensation of $1.00,due to their significant equity ownership of ZPP. Mr. Zuo owns 24.23 million shares and 6.63 million warrants of ZPP through his control of Zongshen Industrial Group. Mr. Li owns 1.18 million shares and 116,000 options of ZPP.

Mr. Zuo is the founder and President of Zongshen Industrial Group, the Company's largest shareholder and a large industrial entity and a significant participant in the motorcycle and gas and diesel-powered engine industry in China, with annual revenues of over $1.3 billion in 2007. Mr. Zuo has extensive business and political relationships in China and was elected as the standing member for two sessions of CPPCC Chongqing Committee, standing member of the State Business Association, Vice Chair of Chongqing Business Association, and Vice Chairman of Chongqing International Chamber of Commerce. Mr. Yao Li has been a key senior executive of Zongshen Industrial Group for over 10 years, who has worked closely with Mr. Zuo in building the Zongshen Industrial Group.

"We believe that the China and global market for alternative power systems, including electric vehicles, solar power, fuel cells and other battery systems is a tremendous opportunity and we plan to build ZPP into a major player in this emerging industry", said Mr. Zongshen Zuo. "When we founded Zongshen Industrial Group in 1992, we had to build the brand, distribution, manufacturing scale, technology portfolio and human resource from the ground up. The growth of ZPP will be accelerated by leveraging the infrastructure of Zongshen Industrail Group. For example, we are targeting sales of 260,000 e-bikes in our second year in the business due to our confidence in the product quality, use of the Zongshen brand and access to the 5,000 dealers that sell Zongshen Industrial Group's motorcycles. I look forward to working with Mr. Li and the ZPP team to become a leader in the e-bike business and to extend our alternative power product business to other sectors."

The Company is also pleased to report Red Sea e-bike unit sales of approximately 29,608 during the fourth quarter of 2007, representing 63% growth compared with the third quarter of 2007. Total unit sales for fiscal 2007 are estimated to be over 60,000 compared with the previously stated guidance of 50,000 units. (See press release issued January 7, 2008)

About Zongshen PEM Power Systems Inc.

Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the TSX Venture Exchange. The Company is engaged in the commercialization of alternate 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 electric motorcycles, electric bicycles and other e-vehicles in China for the domestic and international market. 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 4 billion Yuan. Zongshen Industrial Group implements the development strategy of related diversification within the 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.

For more information please contact:
Ali Mahdavi
Zongshen PEM Power Systems Inc.
Vice President, Corporate Finance & Investor Relations
1-416-962-3300
1.877.775.8734
amahdavi@zongshenpem.com

The statements made in this presentation that are not historical facts are forward- looking statements that represent management's beliefs and assumptions based on currently available information. These statements may relate to matters such as expected financial performance, business prospects, technological developments, and development activities and like matters. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.