Harbin Electric, Inc., a U.S. company, with operations based in Harbin, China,
has successfully developed a high efficiency, energy saving "Tower Type Oil Pump" driven by permanent
magnetic linear motors for the oil and gas industry.
 
The new generation of Tower Type Oil Pump is the world's first vertical
oil pump that adopts a large thrust cylindrical synchronous linear motor,
producing measurable energy savings. In addition to the benefits of energy
efficiency, key features of the intelligent design include automatic and
reversing speeds, as well as significantly reduced operational maintenance
costs. This specially designed pump contains unique motor technologies
which allow the pump to consume less energy during all phases of operation.
In particular, the patented pumping system intelligently gauges the tension
needed to mechanically lift liquid out of the wellhead. By adjusting the
power needs of the pump on a real time basis, it can provide more than
20-30% of energy, when compared to traditional oil pumps.

Harbin Electric's linear motor oil pump is certified by Heilongjiang
Science and Technology Bureau ("HSTB"), a branch of The Ministry of Science
and Technology of the People's Republic of China, and China National Petroleum Corporation
Daqing Petroleum. A prototype of the Tower Type Oil Pump has been running
at the Second Extraction Factory of the Daqing Oilfield for a year and a half. The prototype unit has met the functional design requirements on all
technology aspects.
 
Harbin Electric applied for five Chinese patents related to this
product. Three of these patents have been approved and the remaining
applications are pending approval. The three approved patent numbers are
ZL200420018936.9, ZL200420018931.6 and ZL200420018930.1.
 
Daqing Petroleum is the biggest petroleum corporation in China,
producing approximately 366 million bbl of oil annually. The testing model
of the tower-type oil pump was originally customized for Daqing Petroleum.
With the testing of the prototype complete, Daqing Petroleum has placed a
purchase order for 13 units to be delivered by the end of 2007. These units
are expected to sell at an average price of US $52,000.
 
Tianfu Yang, Chairman and Chief Executive Officer of Harbin Electric
stated, "We are pleased to introduce to the oil and gas industry this state
of the art vertical style oil pump driven by efficient linear motors. This
product development is an important milestone for our company as it further
positions Harbin Electric as a leader in industrial motor technology. Since
we began development of the tower-type oil pump 3 years ago, our
research and development team has been actively involved in an effort to
deliver a unique solution which has culminated in several new patents for
our business and has developed another revenue channel for our company."
 
Yang concluded, "In the newly issued '11th 5-Year Plan for
National Economic and Social Development Program of China' (2006-2010), the
Chinese government explicitly focuses on the need to improve the efficiency
of the Country's resource use and mandates a reduction in energy
consumption per unit of GDP by 20%. This policy established by the Central
Government of China is encouraging for our business as our newly developed
oil pump can provide energy savings of over 25% when compared to
traditional oil pumps. We believe this product will add to our growth in
the years ahead and supports our corporate goal to introduce intelligent,
efficient solutions to the global industrial motor marketplace."

Source: Harbin Electric