Zongshen PEM Power Systems Inc. Announces Third Quarter Unit Sales

• Third quarter unit sales total 87,355 units
• Year to date unit sales total 133,483 units

October 9, 2008 - Vancouver, British Columbia - Zongshen PEM Power Systems Inc. ("ZPP" or "the Company") (TSX:ZPP), announced today that it will preannounce its unit sales data at each quarter-end on a go forward basis in order to help the market closely follow the continued growth and progress of its low emission and electric bike business.

For the three-month period ended September 30, 2008, ZPP sold 87,355 units of low emission small gas bikes and electric bikes. This compares to total unit sales of 18,168 units, and 22,715 units during the corresponding quarter in 2007 and during the second quarter of 2008, respectively.

"I am pleased with our progress in ramping up sales to a record 87,355 units resulting in year to date sales reaching 133,483 units," noted Zongshen Zuo, Chairman and CEO of Zongshen PEM Power Systems Inc. "We continue to see robust demand for our low emission gas bikes and e-bikes for the fourth quarter and remain confident in achieving our stated guidance of 260,000 in unit sales for 2008."

The Company plans to release its complete financial results including a detailed breakdown on sales mid-November.

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 alternative 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 small gas motorbikes, 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 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 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

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 set forth in this press release including foreign exchange rates, expected growth, manufacturing output and capacity, sales expectations, 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.