Zongshen Zuo Appointed As Chief Executive Officer of Zongshen PEM Power Systems Inc.



    TSX Venture Exchange: ZPP

    VANCOUVER, March 3 /CNW/ - Zongshen PEM Power Systems Inc. ("ZPP" or the
"Company") (TSXV:ZPP), is pleased to announce the appointment of Mr. Zongshen
Zuo to Chief Executive Officer, effective immediately. Mr. Zuo will continue
his role as the Chairman of the Board of Directors of the Company. As Chief
Executive Officer, Mr. Zuo will be responsible for developing the Company's
growth strategy in consultation with the Board of Directors and ensuring that
ZPP has access to the resources and support of the Zongshen Industrial Group
as set out in the Master Support Agreement (see press release dated January 7,
2008.) Mr. Yao Li has resigned as Chief Executive Officer and will continue
his responsibilities as the President of ZPP with greater focus and attention
on operations and international business development.
    Mr. Zuo and Mr. Li have both agreed to annual cash compensation of
$1.00,due to their significant equity ownership of ZPP. Mr. Zuo owns
24.23 million shares and 6.63 million warrants of ZPP through his control of
Zongshen Industrial Group. Mr. Li owns 1.18 million shares and 116,000 options
of ZPP.
    Mr. Zuo is the founder and President of Zongshen Industrial Group, the
Company's largest shareholder and a large industrial entity and a significant
participant in the motorcycle and gas and diesel-powered engine industry in
China, with annual revenues of over $1.3 billion in 2007. Mr. Zuo has
extensive business and political relationships in China and was elected as the
standing member for two sessions of CPPCC Chongqing Committee, standing member
of the State Business Association, Vice Chair of Chongqing Business
Association, and Vice Chairman of Chongqing International Chamber of Commerce.
Mr. Yao Li has been a key senior executive of Zongshen Industrial Group for
over 10 years, who has worked closely with Mr. Zuo in building the Zongshen
Industrial Group.
    "We believe that the China and global market for alternative power
systems, including electric vehicles, solar power, fuel cells and other
battery systems is a tremendous opportunity and we plan to build ZPP into a
major player in this emerging industry," said Mr. Zongshen Zuo. "When we
founded Zongshen Industrial Group in 1992, we had to build the brand,
distribution, manufacturing scale, technology portfolio and human resource
from the ground up. The growth of ZPP will be accelerated by leveraging the
infrastructure of Zongshen Industrail Group. For example, we are targeting
sales of 260,000 e-bikes in our second year in the business due to our
confidence in the product quality, use of the Zongshen brand and access to the
5,000 dealers that sell Zongshen Industrial Group's motorcycles. I look
forward to working with Mr. Li and the ZPP team to become a leader in the
e-bike business and to extend our alternative power product business to other
sectors."

    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.

    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.





For further information:

For further information: Ali Mahdavi, Zongshen PEM Power Systems Inc.,
Vice President, Corporate Finance & Investor Relations, (416) 962-3300,
1-877-775-8734, amahdavi@zhongshenpem.com

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ZONGSHEN PEM POWER SYSTEMS INC.

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