China Keli signs $1.75M Sales Agreement

VANCOUVER, May 9 /CNW/ - China Keli Electric Company Ltd. (TSXV: ZKL) ("China Keli" or the "Company") is pleased to announce it has signed a comprehensive sales agreement with Guang Da Electric ("Guang Da"), a subsidiary of the Zhuhai Power Supply Bureau. Under this agreement, which extends through Dec.31st, 2011, Guang Da will purchase equipment and components from China Keli with a minimum value of RMB 12 million (~CAD$1.75 million based on current exchange rates).

Under the first phase of this agreement, Guang Da has purchased 24kV switchgear equipment valued at RMB 715,000 (~CAD$105,000).  The equipment and other components will be used for renewable energy and infrastructure construction in the Zhuhai Hengqin Island development.  Zhuhai Hengqin Island is a Special Economic Zone linked to Macau and Zhuhai.  The Zone is slated for massive development, with the current RMB 70 billion (~CAD$10.3 billion) budget expected to grow rapidly as mandated by China's recent 12th 5 Year Plan.

"It's nice to secure another significant sales order, in this case for a massive development in our own backyard.  This agreement is directly with a national government power subsidiary", said Lou Meng Cheong, China Keli's CEO, "Over the term of the agreement the equipment purchases will be used for power distribution, renewable energy and other new market applications as part of Zhuhai's continuing major infrastructure build-out.  Revenues under the contract will contribute to our current year's financial performance".

"We're pleased to play our part in the modernization and urbanization of China, and to see the growing demand for our products in green technology applications", said Madame Wong, Chairperson of China Keli. 

About China Keli Electric Company Ltd.

China Keli is a hi-tech company that develops, manufactures and installs hi-voltage electrical components and equipment, including preassembled mini-substations, electrical controllers, pressurized/vacuumed switchgears and circuit breakers in the People's Republic of China.  China Keli's markets include electrical transmission and distribution systems, Smart Grid, transportation (railways, subways, street lighting, etc.), and the "Cleantech" sector (renewable energy, solid waste processing, waste water, etc).

ON BEHALF OF THE BOARD OF DIRECTORS
Mr. Lou Meng Cheong
CEO
Phone:  403.389.3488

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

Legal Notice Regarding Forward Looking Statements: Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding the Company's ability to close the Offering. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, and in this news release include: (i) Guang Da will purchase a minimum of RMB 12 million of equipment from the Company before December 31, 2011.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect, wholly or partially. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) the inability or unwillingness of Guang Da to fulfill their obligations under the contract, or on the terms set out above or at all, (2) a downturn in general economic conditions in China or internationally, (3) inability to manufacture the products as demanded by Guang Da; and (4) fluctuation in the exchange rate between Canadian dollar and Renminbi. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian securities regulators.

SOURCE China Keli Electric Company Ltd.

For further information:

Scott Koyich, President
Brisco Capital Partners
(403) 262-9888
skoyich@briscocapital.com

Or

Michael Raymont
EVP Finance and Corporate Development
(403) 389-3488
mraymont@zkl.com

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China Keli Electric Company Ltd.

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