HEAT Smartheat Inc. (MM)

NEW YORK, Oct. 15 /PRNewswire-Asia/ -- SmartHeat Inc. (Nasdaq: HEAT; website: www.smartheatinc.com), a market leader in China's clean technology energy savings industry, today announced the filing of a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC).

The shelf registration statement, when declared effective by the SEC, will allow SmartHeat the flexibility to potentially offer and sell from time to time in the future, in one or more public offerings, up to $100 million of common stock, warrants, debt and convertible securities, or any combination thereof. The specifics of any future offering, including the prices, terms and use of proceeds of any such securities offered by SmartHeat, will be established at the time of the offering and will be described in a prospectus supplement filed with the SEC at the time of the offering.

While SmartHeat does not have any commitments or current intention to sell securities under the shelf registration statement at this time, filing the shelf registration statement is intended to give SmartHeat greater flexibility to capitalize on favorable market conditions and to respond to strategic opportunities as they may arise. SmartHeat is not required to offer or sell any securities under the shelf registration statement.

Mr. James Wang, Chief Executive Officer of SmartHeat, stated: "The proceeds from the sale of the securities under the shelf filing will be used to pursue acquisition opportunities in China, Europe or the United States. While no specific acquisition candidate has been identified, we believe that rapid access to additional capital, together with our strong balance sheet, will permit us to pursue and close acquisition opportunities that will not only complement and strengthen our business, but also make a meaningful contribution to our revenues and earnings."

Mr. Wang continued, "Our management has substantial experience in successfully targeting, acquiring and integrating accretive acquisitions in the clean energy industry into our product line. In September 2008, we acquired SanDeKe Co., Ltd., expanding our plate heat exchanger production.  In May 2009, we acquired Siping Beifang, allowing us to market products to the rapidly expanding Chinese nuclear power industry. Both acquisitions have been successfully integrated and are fully accretive to earnings. We believe both acquisitions have also helped to enhance shareholder value further by increasing our exposure to a broader cross section of China's clean technology industry."

The shelf registration statement has been filed with the SEC but has not yet been declared effective. These securities may not be sold nor may offers to buy these securities be accepted prior to the time the shelf registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering of these securities will be made solely by means of a prospectus and an accompanying prospectus supplement relating to that offering. This press release is being issued pursuant to and in accordance with Rule 135 under the Securities Act of 1933.

About SmartHeat Inc.

Founded by James Jun Wang, a former executive at Honeywell China, SmartHeat Inc. (www.smartheatinc.com) is a NASDAQ Global Market listed (Nasdaq: HEAT) U.S. company with its primary operations in China. SmartHeat is a market leader in China's clean technology energy savings industry. SmartHeat manufactures standard plate heat exchangers (PHEs), custom plate heat exchanger units (PHE Units) and heat meters. SmartHeat's products directly address air pollution problems in China where massive coal burning for cooking and heating purposes is the only source of economical heat energy in China. With broad product applications, SmartHeat's products significantly reduce heating costs, increase energy use and reduce air pollution. SmartHeat's customers include global Fortune 500 companies as well as municipalities and industrial/residential users. China's heat transfer market is currently estimated at approximately $2.4 billion with double-digit annual growth according to the China Heating Association.

Safe Harbor Statement

All statements in this press release that are not historical are forward- looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. SmartHeat's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect SmartHeat's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in SmartHeat's filings with the Securities and Exchange Commission.

SOURCE SmartHeat Inc.