China Energy Savings Technology (CESV)

[beigledog]

#16...

Abraham Fruchter & Twersky LLP Announces Class Action Suit Against China Energy Savings Technology, Inc.)


NEW YORK, NY, May 19, 2006 (MARKET WIRE via COMTEX) -- Abraham Fruchter &
Twersky LLP today announced that a class action lawsuit has been commenced in
the United States District Court for the Southern District of New York on behalf
of purchasers of China Energy Savings Technology, Inc. ("China Energy") (NASDAQ:
CESV) common stock during the period between April 21, 2005 and February 15,
2006 (the "Class Period").

The complaint charges China Energy and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. China Energy engages in
the development, manufacture, sale, and distribution of energy-saving products
for use in commercial and industrial settings in the People's Republic of China.
The complaint alleges that during the Class Period, defendants issued materially
false and misleading statements regarding the Company's business and financial
results. As a result of defendants' false statements, China Energy stock traded
at artificially inflated prices during the Class Period. On February 15, 2006,
after the market closed, the NASDAQ announced that trading was halted in China
Energy stock for "additional information requested" from the Company at a last
price of $6.82. As of May 18, 2006, trading in China Energy's stock remained
halted.

According to the complaint, the true facts, which were known by the defendants
but concealed from the investing public during the Class Period, were as
follows: (a) the Company's accounting department suffered from material
weaknesses and deficiencies and lacked the necessary staff and resources to
perform its required functions; (b) contrary to representations contained in the
Company's SEC filings, the Company's internal controls were inadequate and
easily manipulated; (c) the Company lacked effective internal controls in its
financial reporting process required to enable it to properly analyze and/or
estimate China Energy's future financial and operational performance; (d) China
Energy was improperly recognizing revenue associated with its long-term
energy-sharing service agreements by recognizing revenue before it was earned
and realizable; (e) China Energy's January 2006 private placement was fraught
with self-dealing; and (f) China Energy was experiencing inside and/or self
dealing transactions in the Company's stock by insiders, its executives and/or
members of its Board of Directors which could lead to trading of its stock being
halted by the NASDAQ.

Plaintiff is represented by Abraham Fruchter & Twersky LLP and seeks to recover
damages on behalf of all purchasers of China Energy common stock during the
Class Period (the "Class"). If you wish to serve as lead plaintiff, you must
meet certain legal requirements set forth in the applicable law and file
appropriate papers with the Court no later than 60 days from May 1, 2006. You do
not need to seek appointment as a lead plaintiff in order to share in any
recovery. Under certain circumstances, one or more Class members may together
serve as lead plaintiff. You may retain Abraham Fruchter & Twersky, LLP, or
other counsel of your choice, to serve as your counsel in this action or you may
choose to do nothing and remain an absent class member.

If you have any questions concerning this case or your rights or interests with
respect to this matter, please contact plaintiff's counsel: Jack G. Fruchter,
Esq. or Ximena Skovron, Esq. of Abraham Fruchter & Twersky, LLP, One Penn Plaza,
Suite 2805, New York, New York 10119, by telephone at [phone] or toll
free at [phone], by facsimile at [phone], or by e-mail at
[e-mail] or [e-mail].



CONTACT:

Abraham Fruchter & Twersky, LLP

Jack G. Fruchter, Esq.

Ximena Skovron, Esq.

One Penn Plaza

New York, NY 10119

1-800-440-986 (toll free) or 1-212-279-5050

Or by e-mail at Contact via http://www.marketwire.com/mw/emailprcntct?id=082A8A8C6A34DAC5

SOURCE: Abraham Fruchter & Twersky LLP