Chinese Ceramic Valve Manufacturer Receives First Contract in Hong Kong

Shengkai Innovations, Inc. (Nasdaq: VALV; "Shengkai Innovations" or the "Company"), a leading ceramic valve manufacturer with operations in the People's Republic of China (the "PRC"), today announced that it has won its first key contract in Hong Kong.

After one year of testing and stringent selection procedures, Shengkai Innovations' valve products have been well received by Hong Kong power generation companies due to its products' long durability and high quality under both high temperature and high pressure. Shengkai's V-shape ceramic ball valves can serve as direct replacements for its Indian counterparts, which its new Hong Kong customers previously used. As of August 16, 2010, Shengkai Innovations has filled 3 commercial orders under the new contract from major power generator in Hong Kong.

Mr. Chen Wang, Chairman and Chief Executive Officer of Shengkai Innovations, remarked, "We are excited about our entrance in Hong Kong as this represents a key milestone: our entry into another important market with high quality standards. With over 7 million residents, massive tourist traffic and some of world's most active ports, Hong Kong's power generators are under tremendous pressure to ensure ongoing electricity supplies and to avoid power outages. The selection of our valves by Hong Kong power company is an encouraging endorsement on the reliability of our ceramic products' quality."

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