Zongshen PEM Power Systems E-bike Update

• Sales orders of 152,000 e-bikes for delivery in 2008, on track to meet or exceed guidance for 260,000 e-bikes
• Increased selling prices and margins for Red Sea e-bikes
• Red Sea and Blue Sea e-bikes to be combined into one product line

April 21, 2008 — Vancouver, British Columbia — Zongshen PEM Power Systems Inc. ("ZPP" or the "Company") (TSXV:ZPP), is pleased to provide an update on the Company's e-bike business.

As of March 31, 2008 the Company had sales orders for delivery of 152,000 e-bikes, including 130,000 from 1,100 certified distributors in China and 22,000 for export. Based on the current sales orders and expressions of interest from distributors, the Company is confident that it will meet or exceed the sales guidance of 260,000 e-bikes for 2008.

ZPP has increased net margin for its Red Sea e-bikes by increasing the average selling price by 5% for the domestic China market and up to 20% for exports, due to improvements in quality and styling. The Company achieved these improvements by leveraging the motorcycle technology, manufacturing expertise and brand of its major shareholder, the Zongshen Industrial Group. In addition, ZPP was able to achieve these results with cost increases of less than 3%, partly due to the purchasing power of the Zongshen Industrial Group. As a result, the Company has decided to amalgamate the Red Sea and Blue Sea product lines to form one line of e-bikes due to the increasing convergence in quality and margins. Going forward, ZPP will not segment its e-bike sales into Red Sea and Blue Sea, and will continue to market its e-bikes under the Zongshen brand.

The 1,100 certified dealers in China, include 700 Zongshen branded stores. The sales orders for 130,000 e-bikes in China are for mostly for delivery after the first quarter, and the Company expects further orders from its existing and new China dealers during the May to December period, which is the busy season for e-bikes in China. The first quarter is typically the slowest season for e-bikes in China, partly due to the Chinese New Year holiday, and the first quarter of 2008 was further dampened by severe weather which slowed shipping and deliveries.

The 22,000 e-bike units in the order book for delivery to export markets include orders from Vietnam, Thailand, South Korea and Nigeria. The export sales include over 10,000 small (less than 50 cc) gas bikes for Nigeria, that are assembled in the Company's Wuxi plant. While the Company is not focusing on small gas bikes, the Company accepted the orders due to excess capacity at the Wuxi plant in the first quarter of 2008. The Company is experiencing growing demand and better pricing from export markets in Asia due to the presence and brand recognition of Zongshen, and the lack of strong local competitors for high-quality e-bikes. In addition, Zongshen Industrial Group has manufacturing facilities for gas motorcycles in Vietnam and Thailand. If sales reach a critical volume in Vietnam and Thailand, ZPP will consider entering an OEM arrangement with Zongshen Industrial Group for the manufacturing and supply of e-bikes in those markets.

With 39 e-bike models currently in production and another 13 expected to be launched, by the fourth quarter of 2008, the Company is on track to meet or exceed its previously stated guidance of 260,000 units for 2008. The 13 new models will all be premium models that the Company believes will be attractive in the European and North American markets. Accordingly, the Company is in discussions with potential distributors in western markets with a view to certifying and testing products in 2008 and entering selected markets in 2009.

"We are very pleased that our dealers and distributors in China and export, markets recognized the improved quality of our e-bikes and agreed to price increases" noted Zongshen Zuo, Chairman and CEO of Zongshen PEM Power Systems Inc. "We are making great progress in our goal of becoming the leading provider of high-quality e-bikes in China and Asia where the Zongshen brand is known for quality and performance, and look forward to introducing our premium models to Europe and North America."

About Zongshen PEM Power Systems Inc.
Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the Toronto Venture Stock 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 8.4 billion Yuan. Zongshen Industrial Group implements the development strategy of related diversification within 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

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.