Harbin Electric Announces Participation in Investor Conference in Beijing and Presents Key Growth Directions

Harbin Electric, Inc. (Nasdaq: HRBN; "Harbin Electric" or "the Company"), a technology-oriented market leader in product development and integrated production tailored to customer applications in linear motors, motor/controller automation systems, specialty micro-motors for automobile interior applications and other specialty micro-motors, participated in the 3rd Semi-Annual Investor Tour of Mainland China hosted by Brean Murray Carret & Co. on September 10, 2007 in Beijing, China.

At a round-table with global institutional investors, Mr. Tainfu Yang, Harbin Electric's Chairman and Chief Executive Officer, presented the Company's core product lines, competitive strengths, and key growth strategies.

In answering questions from investors, Mr. Yang shared his vision about the Company's exciting growth potential. "The Company intends to continue to maintain its leadership position in customized linear-motors by further expanding its customer base and offering new products," said Mr. Yang. "For example, the Company is working jointly with the Institute of Electrical Engineering of the Chinese Academy of Sciences (IEECAS) to develop a linear motor system to support the government's long term plan to build an urban mass transportation infrastructure in more than 40 major cities across the country over the next 15-20 years, primarily relying on domestic capabilities. Harbin Electric is very excited to participate in this effort. The revenues from linear-motors and their integrated systems are expected to reach $150 million in the year 2010."

"Our auto interior specialty micro-motors business is also expected to be one of the key drivers of our growth. The automobile industry in China is growing at a record speed with more than 5 million vehicles produced annually. Foreign automakers are also increasingly sourcing auto parts from China to reduce cost. There are various specialty micro-motors used in each vehicle including car seats, windows, doors, door locks, and gas pedals. The degree of automation is also increasing across all types of vehicles from low-end to high-end. This constitutes a huge market potential for Harbin Electric," Mr. Yang added. "To further expand this line of business, we are building a second manufacturing site in Shanghai dedicated to the development and production of auto interior specialty micro-motors. The Shanghai facility is expected to increase the current annual capacity of 2.4 million units by 10 million units. We expect the revenues from this business to reach $200 million in year 2010."

"Developing our overseas business and exporting our products is another avenue to grow our business. Currently, about one third of our revenues come from sales to the market outside China and we are actively seeking opportunities to further develop our overseas business. Over time, our revenues from outside China are expected to increase. However, the Chinese market will continue to be our primary focus and our domestic revenues are expected to remain above 50% in the long run."

"We are also planning to enter the industrial rotary motor business through acquisition, with a clear focus on specialty, high-end, high- efficiency products such as explosion-proof electric motors used for the petrochemical, metallurgy, and coal mining industries," Mr. Yang continued. "With our clear vision and focused strategy, we believe that we are well positioned to further grow our business and increase value for our shareholders."

About Harbin Electric, Inc.:

Harbin Electric, headquartered in Harbin, China, is the market leader in linear motors, motor/controller automation systems, specialty micro-motors for automobile interior applications, and other specialty micro-motors and is the first and currently the only Chinese company to provide product development and integrated production tailored to customer applications. The Company is highly technology-oriented with a focus on innovation, creativity, and value- added products and is environmentally conscious and socially responsible. It provides its customers with energy efficient products and its employees with friendly working and living conditions, competitive compensation, and reasonable work schedules. One of the Company's greatest assets is its strong R&D capability achieved by recruiting 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. Driven by advantages in closer customer relationships, better understanding of local markets and customer needs, and lower production cost, the Company is able to outperform its competition, which is mainly foreign, and has steadily improved its competitive position in the domestic linear motor market. With fast economic growth in China and favorable government policies, Harbin Electric has formulated and is in execution of a multi-faceted growth strategy to expand the business into the linear motor systems for urban mass transportation and rotary motors with a clear focus on providing high-end, energy efficient products. To learn more about Harbin Electric, visit http://www.harbinelectric.com .

Safe Harbor Statement

This press release contains forward-looking information about the Company that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and the Company's future performance, operations and products. The actual results of Harbin Electric, Inc. could differ materially from those described in this press release. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release may be found in the Company's periodic filings with the U.S. Securities and Exchange Commission, including the factors described in the section entitled "Risk Factors" in its quarterly report on Form 10-QSB for the quarter ended June 30, 2007. The Company does not undertake any obligation to update forward-looking statements contained in the press release.

For investor and media inquiries, please contact:
Harbin Electric, Inc.
Barry L. Raeburn
Tel: +1-215-854-8104