Chisen Electric Corporation Reports First Quarter Sales Grew 33%; Net Income Up Slightly

ZHEJIANG, CHINA--(Marketwire - August 17, 2009) - Chisen Electric Corporation (OTCBB: CIEC)
(the "Company"), a leading lead-acid motive battery producer for the
electric bicycle market in the People's Republic of China, reported today
that revenues in its first quarter grew approximately 33% as it continued
to experience strong sales of its battery products.

The Company reported that revenues in its first quarter ended June 30, 2009
increased to $29,475,000 compared with revenues of $22,225,000 in the same
period in the prior fiscal year. Net income in the quarter ended June 30,
2009 increased slightly to $2,005,000 from $1,912,000 in the same period
last year, while earnings per share in this year's first quarter were
$0.04, equal to the $0.04 per share reported in the same period last year.

As the third largest producer of lead-acid motive battery products (LABEBS)
in China, with strong relationships with leading electric bicycle-makers
there, the Company said it continued to benefit in the first quarter from
rapid growth in the PRC electric bicycle market. This helped generate a 76%
increase in sales volume in the period.

At the same time the Company said it experienced a 28% decrease in average
unit selling prices in response to decreases in major raw material costs,
although the decrease was offset by the significant increase in sales
volume and overall sales grew 33%.

While the Company reported that cost of sales grew in the quarter, the cost
rates (as a percentage of sales) were about even at approximately 81.8%
with the year earlier period.

Net income in the 2009 quarter also was affected by a growth related
approximately $680,000 increase in sales, marketing and distribution costs
as well as increases in G&A expenses mainly related to increased employee
compensation and benefits.

Financial Strength

Of significance, in the 2009 quarter the Company arranged a number of bank
loans to satisfy growth needs and saw net cash provided by financing
activities increase to approximately $11,688,000 from approximately
$1,455,000 in the same period last year. The Company's cash position
increased as of June 30, 2009 to approximately $9,085,000 compared with
$3,182,000 in the prior year quarter. The Company's working capital in the
2009 quarter also increased by close to $2 million to approximately
$14,472,000. A decrease in accounts payable of about $20.5 million was
offset by an increase to approximately $19.2 million in short-term bank
loans, as noted above, as well as by payable and other accrued expenses and
liabilities.

Continuing Growth Ahead

Mr. Xu Kecheng, President, CEO and a Director of the Company, commented,
"The year is off to a reasonably strong start, with our strengthened
financial position, new capital equipment in place to support increased
production and a vigorous electric bicycle market. While we anticipate a
continuation in fluctuating raw material and sales prices, we will continue
to focus on improving our product mix to include higher power products with
better selling prices and broadening our customer base." He added, "Our
goal continues to be to become the top manufacturer in the industry in
China through both internal growth and acquisition. This will permit us to
reap the full benefits of the very exciting growth possibilities we see
ahead providing a non-polluting, less expensive alternative power source to
meet growing transportation needs and consumer preferences for 'green'
products."

Description of Chisen Electric Corporation

Chisen Electric Corporation, incorporated in Nevada, USA, and headquartered
in Zhejiang Province, the People's Republic of China, is a leading
lead-acid motive battery producer for China's personal transportation
device market. The Company's battery products are sold under its own brand
names and are predominantly used in electric bicycles. Among all types of
batteries for electric bicycles, the lead-acid motive battery is the
preferred choice for electric bicycle manufacturers in China because of its
cost efficiency. In the fiscal year ended March 31, 2009, the Company
manufactured more than 7,740,000 batteries and had more than 2,000
employees.

"Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995:

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current expectations or beliefs,
including, statements concerning the Company's operations, financial
performance and condition. For this purpose, statements that are not
statements of historical fact may be deemed to be forward-looking
statements. The Company cautions that these statements by their nature
involve risks and uncertainties, and actual results my differ materially
depending on a variety important factors, including, but not limited to,
the impact of competitive conditions and effectiveness of marketing;
changes in laws and regulations; fluctuations in costs of production,
financing and other factors as discussed in the Company's reports filed
with the Securities and Exchange Commission from time to time, In addition,
the Company disclaims any obligation to update any forward-looking
statement to reflect events or circumstances after the date hereof. No
securities regulatory authority has either approved or disapproved the
contents of this new release. This release is not an offer of securities
for sale in the United States. Securities may not be offered or sold in the
United States absent registration or an exemption from registration. Any
public offering of securities to be made in the United States will be made
by means of a prospectus that may be obtained from the issuer or selling
security holder and that will contain detailed information about the
company and management, as well as financial statements. The Company
filings with the US Securities and Exchange Commission, including the
annual report for the fiscal year ended March 31, 2009 on Form 10-K, can be
viewed on EDGAR Online or www.sec.gov.

Chisen Electric Corporation

Unaudited Condensed Consolidated Statements of Operations and Other
Comprehensive Income
For the three months ended June 30, 2009 and 2008

Three months ended
June 30
----------------------
2009 2008
US$’000 US$’000
Operating revenues:
Net sales to third parties 29,475 22,225

Cost of sales (24,105) (18,195)
---------- ----------

Gross income 5,370 4,030

Operating expenses:
Sales, marketing and distribution (1,787) (1,105)
General and administrative (1,056) (612)
---------- ----------

Operating income 2,527 2,313

Other income, net 147 206
Interest income 55 7
Interest expense (369) (286)
---------- ----------

Income before income taxes 2,360 2,240

Income taxes expenses 4 (355) (328)
---------- ----------

Net income 2,005 1,912

Other comprehensive income
Foreign currency translation adjustment 1 226
---------- ----------

Comprehensive income 2,006 2,138
========== ==========

Shares Shares

Earnings per share
Weight average number of common stock outstanding
- basic and diluted 3 50,000,000 50,000,000
========== ==========

US$ US$

Net income per share of common stock outstanding
- basic and diluted 0.04 0.04
========== ==========