Zongshen PEM Power Systems Inc. Announces Normal Course Issuer Bid

October 15, 2008 – Vancouver, British Columbia – Zongshen PEM Power Systems Inc. ("ZPP" or "the Company") (TSX:ZPP), announced today that it will, subject to the approval of The Toronto Stock Exchange ("the Exchange"), make a Normal Course Issuer Bid (the "Bid") to purchase through the facilities of the Exchange, from time to time, as it considers advisable, up to 3,045,211 of the issued and outstanding Common Shares (being approximately 5% of the 60,904,230 Common Shares outstanding at September 30, 2008).

The Bid will commence on or about November 15, 2008 after the filing of the Company's third quarter financial statements and terminate on the earlier of the anniversary of the Bid or the date on which ZPP acquires all of the shares sought pursuant to the Bid. The price which ZPP will pay for any shares purchased by it will be equal to the prevailing market price of such shares on the Exchange at the time of purchase. Any shares acquired by ZPP pursuant to the Bid will be cancelled.

At June 30, 2008, the Company had cash and short-term deposits, including the short-term deposit with Zongshen Industrial Group, totalling $38.9 million, compared to $36.5 million at December 31, 2007 and no long-term debt. The Company has approximately $10 million committed to capital projects, comprising the construction of ZPP's Chongqing production facility and battery exchange club trial project. The Company is well capitalized to fund the expansion of its electric motorcycle and small gas motorcycle business and take advantage of strategic investment opportunities, which may include acquisitions, joint ventures and the development of new products.

"Given the growth opportunities that are available to us and the growing demand for ZPP's product line in China and in export markets, we are confident that the Company's share price is undervalued and not reflecting the true value of the business," noted Zongshen Zuo, Chairman and Chief Executive Officer of Zongshen PEM Power Systems Inc. "We have a strong balance sheet which will be deployed cautiously to explore growth opportunities to increase shareholder value."

About Zongshen PEM Power Systems Inc.
Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the Toronto Stock 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.