SHENYANG, China, Aug. 12 /PRNewswire-Asia/ -- NF Energy Saving Corporation of America (OTC Bulletin Board: NFES; "NFES"), a Chinese leader in energy efficient flow control systems, reported financial results for its second quarter ended June 30, 2009.

On May 22, 2009, NF Energy reported a backlog of $35.9 million, and estimated $2.2 million would be completed in Q2 '09.

NF Energy's revenues for Q2 exceeded the forecast by 137%, with revenues coming in at $5.22 million. As a result of the Chinese stimulus package and the focus on energy saving technology, NF Energy is experiencing greater growth than previously anticipated.

    Second Quarter 2009 Highlights:
    -- Revenues increased to $5.22 million and $7.64 million for the three and
       six months ended June 30, 2009 respectively.
    -- Gross profit increased to $1.52 million, up 22% from $1.25 million for
       the same period last year.
    -- Net income was $1.16 million, or $0.03 per fully diluted share, up 9%
       from $1.06 million for the same period in last year, excluding a non-
       cash compensation expense. Net income pre tax including non-cash
       expenses was $1.34 million.

Second Quarter 2009 Results

Revenues were $5.22 million and $7.64 million for the three and six months ended June 30, 2009, respectively, as compared to $4.30 million and $7.16 million for the corresponding periods in 2008. Total revenues increased by $0.92 million and $0.48 million, a 21% and 7% increase, for the three and six months ended June 30, 2009, as compared to total revenues for the three and six months ended June 30, 2008.

Sequentially, revenues were up 116% over Q1 of 2009. The overall gross profit for the Company was $1.52 million and $2.20 million, or 22% and 10%, for the three and six months ended June 30, 2009 respectively. Profit margin increased by $0.1 million to $1.16 million for the three months ended June 30, 2009, excluding a non-cash compensation expense compared to the corresponding three month period in 2008.

"We are very pleased with this quarter's continued strong financial performance," said Mr. Gang Li, President & CEO of NF Energy Saving Corporation. "We continue to announce key strategic initiatives and contract wins which will secure our future growth. Our business continues to accelerate as we enter the second half of 2009. In particular, we are seeing strong demand for our wind products. Overall, our energy-saving control products are becoming more widely utilized throughout various projects in China. Our efforts are complimented by the actions of the Chinese government's successful stimulus program."

Six Month Results

For the six months ended June 30, 2009, total operating revenues were $7.64 million, up 7% from $7.16 million from the same period last year. Gross profit was $2.20 million, up 10% from the same period 2008. Gross margin increased by $0.20 million to $2.20 million for the six months ended June 30, 2009.

At the end of the second quarter 2009 the Company had $11 million in cash receivables, $2.7 million in payables, and no long term debt. NF Energy is investing in a new facility to meet the growing demand for its proprietary wind turbine components.

NF Energy anticipates issuing updated guidance in the near future to reflect under estimated growing demand for its products and services.

About NF Energy Saving Corporation

Website: http://www.nfenergy.com

NF Energy Saving Corporation (OTCBB: NFES - News) is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to provide energy saving services to clients. Headquartered in Shenyang city of China, the Company currently has 220 employees and several proprietary energy saving technologies and patents.

Safe Harbor Statement

This press release contains certain statements that may include 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. 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 actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.