Harbin Electric Experiences Robust Growth for Its Permanent Magnetic Linear Servo Motor

HARBIN, China, April 24 -- Harbin Electric, Inc., ("Harbin Electric" or the "Company", Nasdaq: HRBN), a market leader in customized linear motors, motor/controller automation systems, automobile specialty micro-motors, and other special motors, today announced that its permanent magnetic linear servo motor developed jointly with the Linear Motor Research Institute of Zhejiang University for the food industry is experiencing robust volume growth.

The motor was developed for use in food/meat slicers for U.S. based Illinois Tool Works Inc. (ITW), a Fortune 500 company. ITW is a diversified and value-added manufacturer of highly engineered components and industrial systems and consumables for customers around the world.

Harbin Electric began product development with ITW in 2006 and delivered products in small quantities throughout 2007, leading to a recent order of 6000 units. This order which amounts to more than 10 times the 2007 sales volume for this product is expected to generate approximately $1.5 million in revenues. The Company expects to start shipments to ITW in May and complete the order within three months.

"We are extremely pleased with this order from ITW," Harbin Electric's Chairman and Chief Executive Officer Tianfu Yang commented. "It further validates our R&D vision, strategy and investments as well as our ability to develop and manufacture world-class products for highly demanding global customers."

Mr. Yang added: "In another demonstration that we are winning customers with our strong product development capability and high quality products, we are enjoying a similar experience with our patented Tower Type Oil Pump. After completing product development in 2007 we delivered 13 units to our first customer during that year and we now expect to deliver a minimum of 200 units in 2008."

Looking forward, Mr. Yang concluded: "We have several new products under development for other global and domestic customers, including automobile specialty micro-motors and the linear motor system for urban mass- transportation train system. We expect to bring these new products to production in the coming months and years. I am confident that we will be wining more global and domestic customers with these innovative new products."

This cylindrical permanent magnetic linear servo motor for meat slicers is the first linear servo motor developed by Harbin Electric. The product utilizes synchronous motors with intelligent dynamic coil design and rare- earth permanent magnetic materials. This technology allows the motor to move back and forth with higher precision and lower thrust variation. Compared to other motor systems used in meat slicers, this permanent magnetic linear servo motor is simpler, smaller, lighter, faster, more efficient, and delivers higher precision and reduced maintenance cost. The linear servo motor can also be applied to many other products such as medical devices, high precision instruments, digital control machines, office equipment such as printers and copiers, and other equipment that requires high precision and low thrust variation. Harbin Tech Full Electric Co., Ltd., a wholly owned subsidiary of Harbin Electric, and Professor Yunyue Ye, the head of the Research Institute of Linear Motors of Zhejiang University and an independent board member of the Company, jointly own the patent for this technology awarded by the State Intellectual Property Office of China.

About Harbin Electric, Inc.:

Harbin Electric, headquartered in Harbin, China, is a market leader in linear motors, motor/controller automation systems, automobile specialty micro-motors, and other specialty motors. It is the first and currently, to our knowledge, the only Chinese company to provide product development and integrated production tailored to customer applications in this industry. The Company takes pride in its environmental and social policies, providing customers with energy efficient products and employees with a family-friendly working environment, based on competitive compensation and humane work schedules.

Harbin Electric emphasizes technology, innovation and creativity in its award-winning research and development (R&D) efforts. It recruits professional engineering and operating talent worldwide and through collaboration with top scientific institutions. Its ISO certified manufacturing facility is equipped with state-of-the-art production lines and quality control systems to ensure product quality.

China's rapidly expanding economy together with its government policy supporting the industry provides a sizeable market opportunity for Harbin Electric. To learn more about visit Harbin Electric .