Hanwei Closes Non-Brokered Private Placement Offering for Gross Proceeds of
$3.5 Million

TSX: HE

VANCOUVER, May 7 /CNW/ - Hanwei Energy Services Corp. ("Hanwei" or the "Company") is pleased to announce it has closed its previously announced non-brokered private placement offering of 10,000,000 common shares in the capital of the Company (the "Shares") at a price of $0.35 per Share for gross proceeds of $3,500,000 (the "Offering"). Proceeds from the Offering will be used to fund the Company's joint venture with Ershigs Inc. ("Hanwei Ershigs"), and for operating costs and general working capital.

The Company is also pleased to announce that the Company's founder, President, CEO and principal shareholder, Mr. Fulai Lang, subscribed for 6,000,000 Shares under the Offering, increasing his ownership in Hanwei to 17,116,800 Shares, representing approximately 21.6 percent of the outstanding number of Shares on a non-diluted basis. As well, certain other directors and a senior officer of the Company subscribed for a total of 300,000 Shares of the Offering.

"The investment by myself and other members of the Hanwei team, reflects our confidence in Hanwei's future prospects," stated Mr. Lang. "Our commitment to Hanwei's shareholders is to rebuild the Company's performance and profitability and to effectively manage future growth. To that end, we intend to focus our resources in our FRP-based business segments where we have significant competitive advantages and a proven track record. We are the recognized industry leader in Asia for FRP Pipe, and our joint venture partnership with Ershigs, Inc. provides us with world-class technology to address to the needs of China's massive coal industry. With a strengthening global economy and increased activity in our core domestic and international markets, we anticipate that demand for our world-class products will steadily increase."

About Hanwei Energy Services Corp.

Hanwei Energy Services Corp. provides high value products and services for the energy sector in China and the Asia region. Hanwei serves its major energy customers through manufacturing facilities in China, producing products for the oil, coal power and wind power industries. Hanwei is focusing on providing products and services that address the growing need for improved energy efficiency and environmental protection in China and the Asia region. www.hanweienergy.com

FORWARD-LOOKING INFORMATION

Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the repositioning of the Company's wind power business, the continued discussions relating to repositioning of the Company's wind power business, and the reductions in expenses, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information is based on certain assumptions, which could change materially in the future, including the assumption that the world economy will recover, the wind power business will be repositioned to address the changing wind power market conditions, the Company's FGD business will improve, and the Company will implement its downsizing plan and expenses will be reduced as a result of such a plan. There is no assurances that the wind power business will be repositioned, that agreements on any potential strategic cooperation or joint venture with respect to the Company's wind power business will be reached, and that any repositioning of the Company's wind power business will allow it to viably continue its participation in the wind power business from a business perspective, to alleviate the amount of working capital devoted to such business, or to collect on its outstanding receivable from its wind power customer. The forward-looking information in this press release describes the Company's expectations as of the date of this press release. Material factors or risks which could cause actual results or events to differ materially from a conclusion in such forward-looking information include the risk that the world economy does not recover as expected, the repositioning of the Company's wind power business does not succeed, the Company's pipe business does not perform positively, the Company is unable to implement its downsizing plan at all, partially or in a way substantially different than planned, and expenses will not be reduced as a result of any downsizing plans, as well as the risks set out in the risk factors section of Hanwei's Annual Information Form dated March 31, 2009, and the Company's press releases filed subsequent there to, all filed with Canadian securities regulators and available on SEDAR at www.sedar.com.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.

SOURCE HANWEI ENERGY SERVICES CORP.

For further information: For further information: Yucai (Rick) Huang, Chief Financial Officer, Telephone: (604) 685-2239, yhuang@hanweienergy.com; Kevin O'Connor, Investor Relations, Telephone: (416) 962-3300, ko@spinnakercmi.com

Organization Profile

HANWEI ENERGY SERVICES CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890