China Recycling Energy Signs Leasing Agreement with Cinda Financial-Texglobe

China Recycling Energy Corp. (NASDAQ: CREG or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that its wholly owned subsidiary, Xi'an TCH Energy Technology Co., Ltd ("Xi'an TCH"), has entered into a strategic leasing agreement with Cinda Financial Leasing Co, Ltd. ("Cinda Financial"), an affiliate of China Cinda (HK) Asset Management Ltd. Corporation, in order to raise capital needed for the Company's business expansion. The lease agreement signed on June 28, 2011 involves select assets from CREG's Zhongbao Binhai Nickel Industry Co., Ltd., plant located in Cangzhou, Hebei Province of People's Republic of China (PRC).

Under Leasing Agreement, Xi'an TCH transfers its ownership of a set of 7MW steam turbine waste heat power generation system and four furnaces and its ancillary apparatus ("Assets") to Cinda Financial for a consideration of RMB 42.50 million (approximately US$6.64 million), and Cinda Financial in turn leases the Assets to Xi'an TCH for a term of 5 years with an overall leasing fee of RMB 51.54 million (approximately US$8.05 million) based upon the transfer cost and the benchmark interest rate for five year loans by People's Bank of China ("PBOC") (presently 6.65% per annum) plus 15% of that rate (which at present rate will result in an interest rate of 7.6475%). The interest rate will increase if the five year benchmark interest rate of PBOC increases but will remain the same if the benchmark rate decreases in the future. Xi'an TCH shall make pro rata quarterly payments to Cinda Financial for the leasing fees. Upon the completion of the leasing term and full payment of all leasing fees and other fees, Xi'an TCH can pay RMB 4,250 (approximately US$664) to acquire the ownership of the Assets as is at the end of the lease.

In addition to the leasing fees, Xi'an TCH shall pay a onetime non-refundable leasing service charge of RMB 2,550,000 (approximately US$398,438) and a refundable security deposit of RMB 2,125,000 (US$332,031) to Cinda Financial.

Upon its execution of the Leasing Agreement, Cinda Financial has paid entire transfer price of RMB 42.50 million to Xi'an TCH and Xi'an TCH has transferred the ownership of the Assets to the Cinda Financial. The Assets have been in the possession of and used by Xi'an TCH and will continue to be possessed and used by Xi'an TCH under Leasing Agreement.

Xi'an TCH also entered into a Pledge Agreement with Cinda Financial and uses its electricity fee income to guarantee its obligations under Leasing Agreement and Mr. Guohua Ku, the Chairman and CEO of the Company provides his personal guarantee for Xi'an TCH to implement its obligations under Leasing Agreement.

For more information regarding this financial leasing agreement, please refer to the information found on the Form 8-K filed with the Securities and Exchange Commission on July 11, 2011.