Harbin Electric Completes Acquisition of Hengda Electric Motor, a Leading Industrial Rotary Motor Business

HARBIN, China, -- Harbin Electric, Inc., ("Harbin Electric" or the "Company"; Nasdaq: HRBN), a market leader in customized linear motors, motor/controller automation systems, automobile specialty micro-motors, and other special motors, today announced that Harbin Tech Full Electric Co. Ltd., a wholly owned subsidiary of the Company ('Harbin Tech Full') completed the acquisition of Weihai Hengda Electric Motor Co. Ltd and Wendeng Second Electric Motor Factory (together "Hengda Electric Motor"). As of the closing, Harbin Tech Full has completed the required PRC legal procedures regarding the share and assets transfer and business registration of Hengda Electric Motor with respect to the acquisition, as contemplated by the definitive agreement signed on July 10, 2008.

"We are extremely pleased to have completed the acquisition of Hengda Electric Motor," Harbin Electric's Chairman and Chief Executive Officer Tianfu Yang commented. "We believe that this acquisition marks a strategic milestone for the Company. Together, by combining our knowledge, talents, and expertise, we plan to continue to build on our successes to create better electric motor solutions for our customers and create value for our shareholders."

About Harbin Electric, Inc.:

Harbin Electric, headquartered in Harbin, China, is a market leader in linear motors, motor/controller automation systems, automobile specialty micro-motors, and other specialty motors. It is the first and currently, to our knowledge, the only Chinese company to provide product development and integrated production tailored to customer applications in this industry. The Company takes pride in its environmental and social policies, providing customers with energy efficient products and employees with a family-friendly working environment, based on competitive compensation and humane work schedules.

Harbin Electric emphasizes technology, innovation and creativity in its award-winning research and development (R&D) efforts. It recruits professional engineering and operating talent worldwide and through collaboration with top scientific institutions. Its ISO certified manufacturing facility is equipped with state-of-the-art production lines and quality control systems to ensure product quality.

China's rapidly expanding economy together with its government policy supporting the industry provides a sizeable market opportunity for Harbin Electric.