Harbin Electric, Inc. Responds to Citron Research's Allegations Concerning Mr. Yang Tianfu and Reaffirms His 'Going Private' Proposal at $24.00 Per Share

Harbin Electric HRBN today responded to allegations made by Citron Research in a posting on CitronResearch.com dated June 16, 2011 as yet another attempt to drive its stock price down that is based on factually incorrect as well as out-of- context information. Mr. Yang Tianfu's brother, Mr. Yang Tianli is not, and has never been, a member of the Board of Directors of Harbin Electric. There has never been a Civil Settlement. The case was settled privately approximately 10 years after the alleged facts with no admission of guilt by Mr. Yang Tianfu or Mr. Yang Tianli. The sole involvement of Mr. Yang Tianfu, in the referenced settlement agreement was to provide financial assistance to his brother, Yang Tianli, to settle a dispute to which neither Mr. Yang Tianfu himself nor Harbin Electric was a party.