ChinaRecycling Energy Corporation Transfers BPRT and WGPG Systems to Datong Tianjianfor US$40.3 Million

XI'AN,China, June4, 2015 -- China Recycling EnergyCorp. (NASDAQ: CREG) (“CREG” or “the Company”), a leading industrialwaste-to-energy solution provider inChina, today announced that Xi’anTCH Energy Technology Co., Ltd.(“Xi’an TCH”), its wholly owned subsidiary, recentlyentered into a Recycling Economy System Repurchase Agreement (“RepurchaseAgreement”) with Datong Coal Tianjian Iron & Steel Co., Ltd. (“DatongTianjian”). Under the repurchase agreement, Datong Tianjian will repurchase thetwo Blast Furnace Power Recovery Turbine (“BPRT”) systems and one newlycompleted Waste Gas Power Generation (“WGPG”) system from Xi’an TCH at a totalrepurchase price of approximately US$40.3 million (RMB250.0 million).

The two BPRT systems were completed in June 2013,which have been leased to Shanxi Datong Coal Group Steel Co., Ltd. (“Datong”) thatwas renamed as Datong Coal Tianjian Iron & Steel Co., Ltd. after it was restructured,and the WGPG system was completed in May 2015. Due to the change of itsstrategic plan and business restructuring, Datong recently notified Xi’an TCHthat it requested the repurchase of the BPRT and WGPG systems (the “Systems”)from Xi’an TCH. After negotiations, the Company agreed to an early transfer ofthe systems for a price of about US$40.3 million, including about US$16.1million (RMB100.0 million) for the two BPRT systems and about US$24.2 million(RMB150.0 million) for the WGPG systems.  

Mr. Guohua Ku, Chairman and CEO of CREG commented,“The WGPG system is one of two projects we said would be completed in thesecond quarter of 2015 and we are pleased to have completed it as scheduled. Thesecond project remains on track for completion before June 30. Taking intoconsideration the time value of money and the opportunity to deploy the cash tofund some of the numerous projects in our pipeline, we believe that the earlytermination fee more than compensates the Company for the loss of future income. The market demand for energy recycling remains strong inChina given highly supportive government policies. We continue to invest in ourR&D efforts to explore new solutions to be used in more energy intensive industries. The additionalcash from the early transfer will furtherstrengthen our financial position and spur a new round of businessdevelopment.”

AboutChinaRecycling Energy Corp.

China Recycling Energy Corp. (NASDAQ: CREG) (“CREG” or “the Company”) is based in Xi'an,Chinaand provides environmentally friendly waste-to-energy technologies to recycleindustrial byproducts for steel mills, cement factories and coke plants inChina.Byproducts include heat, steam, pressure, and exhaust to generate large amountsof lower-cost electricity and reduce the need for outside electrical sources.The Chinese government has adopted policies to encourage the use of recyclingtechnologies to optimize resource allocation and reduce pollution. Currently,recycled energy represents only an estimated 1 percent of total energyconsumption and this renewable energy resource is viewed as a growth market dueto intensified environmental concerns and rising energy costs as the Chineseeconomy continues to expand. The management and engineering teams have over 20years of experience in industrial energy recovery inChina. For more information aboutCREG, please visit http://creg-cn.investorroom.com.

Safe Harbor Statement

This press release may contain certain"forward-looking statements" relating to the business of ChinaRecycling Energy Corp. and its subsidiary companies. All statements, other thanstatements of historical fact included herein are "forward-lookingstatements." These forward-looking statements are often identified by theuse of forward-looking terminology such as "believes,""expects" or similar expressions, involve known and unknown risks anduncertainties. Although the Company believes that the expectations reflected inthese forward-looking statements are reasonable, they do involve assumptions,risks and uncertainties, and these expectations may prove to be incorrect.Investors should not place undue reliance on these forward-looking statements,which speak only as of the date of this press release. The Company's actualresults could differ materially from those anticipated in these forward-lookingstatements as a result of a variety of factors, including those discussed inthe Company's periodic reports that are filed with the Securities and ExchangeCommission and available on its website at http://www.sec.gov.All forward-looking statements attributable to the Company or persons acting onits behalf are expressly qualified in their entirety by these factors. Otherthan as required under the securities laws, the Company does not assume a dutyto update these forward-looking statements.

Formore information, please contact:

Mr. Jackie Shi, Chief Financial Officer
ChinaRecycling Energy Corp.
Tel: +86- 13992870723

Email: shi723910@163.com / shi723@creg-cn.com

Christensen

Ms. Xiaoyan Su(China)

Vice President

Tel: +86-10-5900-3429

Email: xsu@christensenir.com

Mr. Christian Arnell (China)

Vice President

Phone: +86-10-5900-1548

E-mail: carnell@christensenir.com