Harbin Electric Responds to a Blog Posting Today; Expects Die-Hard Short Sellers to Try to Create Opportunities to Make Money

Harbin Electric, Inc. HRBN today responded to allegations made by a blog posting today. "As I have mentioned before, we fully expected that die-hard short sellers would continue to try and create opportunities to make money for themselves to the detriment of the large community of loyal shareholders of the Company as we get closer to the expected completion of the pending going private transaction," said Mr. Yang Tianfu, Chairman and CEO. "I am happy to reiterate emphatically that we stand by the accuracy of our filings with the SEC. As disclosed in the Company's recent filings of the preliminary proxy statement in connection with the pending going private transaction, the Company was subject to extensive due diligence conducted by third parties and provided all requested materials, including its relevant PRC tax filings. "At this stage, I believe that our loyal shareholders fully understand the motivations behind this type of 'research work' and are clearly focused on their opportunity to finally speak with their votes and be rewarded accordingly. I am happy to leave it at that." The Company reserves the right to bring legal actions against the author(s) of the Report for their unfounded allegations.