Harbin Electric Reports Strong Results for the Second Quarter 2008-3

（By freelance Chinese translator li – based in Harbin，China – English to Chinese translation or Chinese to English translation services - website localization）

"We are quite pleased with our performance this past quarter," said Mr. Tianfu Yang, Harbin Electric's Chairman（董事长） and Chief Executive Officer（首席执行官）. "We have delivered（交付、经过） another strong quarter and we see exciting times ahead（美好的未来）. On the back of our successful private placement（证券的直接销售） of 3.5 million shares closed on June 24, we were able to complete the acquisition of Weihai Hengda Electric Motor Co. Ltd. which added a third major product line -- rotary motors（回转马达） -- to our product portfolio."

"Our current major focus at Hengda is to ensure that its management team has all the support and resources necessary to complete the existing supply contracts（供应合同） for the year, which should grow revenues and earnings by 30% over 2007. Next, we will gradually improve manufacturing efficiency（生产效率） and optimize product mix by bringing in new technologies and developing higher grade new products over the next few years. To this effect（为了实现该目标）, a special team led by our Chief Technology Officer Mr. Okawa will conduct a thorough study of manufacturing processes and technologies at Hengda, identify opportunities, issue（发表）recommendations, and assist with the execution of the plan（计划执行）."

"In Shanghai, the construction of the main building of our new facility（新设施） has been completed," Mr. Yang continued. "Core production lines（核心生产线） and equipment have arrived and we are scheduled to conduct equipment adjusting and testing and start trial runs（试运行、试车） with all our people in Shanghai moving in to the new facility on October 15. While we have been a bit delayed we are working hard to meet our commitment to our major North American customer Magna International Inc. to have a minimum capacity of 1 million units ready at Shanghai by December this year. We have scheduled three micro-motor lines to be produced（建造） at Shanghai for Magna. These micro-motors including applications for car seats, door locks, and engines have all been successfully developed and validated by Magna. We estimate that the market potential（市场潜力） for these micro-motors could reach a total of $500 million for the next four years," Mr. Yang added.

"Our tower type oil pump project for Daqing Oil Field（大庆油田） is on track（进行中）. With 39 units completed in the first quarter and 80 in the second quarter, we expect to complete 200 units for the whole year."

"Our linear motor driven subway train project progressed quite well. I am pleased to report that the subway line（地铁线） between Beijing airport and the city started to operate successfully before the Beijing Olympic Games. This is a clear validation（认证） and recognition（认可） by the government of the application of the linear motor technology to urban mass transportation（城市公共交通） in China. I am confident that the development process of China's own linear motor driven subway train will be accelerated and I expect that it will move to a new stage after the Beijing Olympics."

Looking ahead（展望未来）, Mr. Yang concluded, "With a well established multi-faceted（多角化的） growth strategy and multiple projects under way, I believe that Harbin Electric is ideally positioned to capture market opportunities and continuously deliver solid results.（表现优异）"