Zongshen PEM Power Systems Inc. Appoints Frank Chen as Chief Financial Officer

April 2, 2008 — Vancouver, British Columbia – Zongshen PEM Power Systems Inc. ("ZPP" or "the Company") (TSXV:ZPP), is pleased to announce the appointment of Mr. Frank Chen as Chief Financial Officer. Mr. Chen brings more than 15 years of finance, planning and management experience in public and private companies with operations in China. Mr. Chen will be based in the Company's corporate headquarters in Vancouver, British Columbia and will replace Simon Anderson as the Company's Chief Financial Officer immediately following the filing of the Company's 2007 annual financial statements. Mr. Chen will oversee ZPP's accounting, forecasting and operational reporting, and will play a key role in the Company's capital markets and investor relations activities. Mr. Chen has been awarded 200,000 stock options with an exercise price $2.84 vesting over three years on a quarterly basis.

"ZPP is committing to building a strong public company to maximize shareholder value as we deliver on our objective of becoming a leading provider of electric vehicles and alternate power systems in China and global markets," noted Mr. Zongshen Zuo, CEO of ZPP. "Frank has a proven track record as a strong public company CFO and controller, speaks fluent English and Chinese, and has operational experience in China and North America that will be invaluable in helping the ZPP team achieve its business objectives. On behalf of the board and management team, I would like to thank Simon Anderson for his contributions to ZPP."

"I am excited to be joining ZPP to establish a strong financial and reporting foundation to support the growth we expect to experience in e-bikes and other alternate power systems," stated Mr. Chen. "It is great to join ZPP given the Company's significant market opportunity and the full support of the Zongshen Industrial Group, one of China's most respected manufacturers and brands."

Prior to his appointment, Mr. Chen spent three years with Golden China Resources Corporation, which was listed on the Toronto Stock Exchange and Australian Stock Exchange until December 2007, first serving as corporate controller and then as Chief Financial Officer and corporate secretary. In these capacities, he led Golden China's financial reporting, foreign exchange hedging, and M&A activities. Before joining Golden China, Mr. Chen spent one year as CFO of Afcan Mining Corporation, a TSX listed company, following his tenure as the financial controller of USG (Shenzhen) Building Materials Ltd (a China based subsidiary of United States Gypsum Corporation, a NYSE listed company).

Mr. Chen earned a bachelor's degree in commerce in accounting from Northeastern University in China, and a master's in business administration degree from University of Western Ontario. Mr. Chen is a Certified Management Accountant.

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 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 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 units of motorcycles, 50,000 mini vans, 3,000,000 units of motorcycle engines, 5,000,000 units of general-purpose engines, and 100,000 units of 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

Forward Looking Information

Certain statements that are not historical facts made in this press release may be forward looking statements subject to risks and uncertainties. Statements containing words such as "could", "expect", "may", "anticipate", "believe", "intend", "estimate", "plan" and other similar expressions are forward-looking statements that represent management's beliefs and are based on certain factors and assumptions including foreign exchange rates, expected growth, manufacturing output and capacity, market potential and expected business opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward looking 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. Except as required by applicable securities laws, 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.