The cost of the acquisition will be USD14.7 million, comprised of USD3.0 million in cash and 1.8 million shares of New Energy's common stock with a value of USD11.7 million at USD6.42 per share. The transaction is expected to be completed by the end of 2009.

Shenzhen NewPower Technology Company was founded in 2004 and is a rapidly growing manufacturer of lithium ion batteries for cell phones and other portable devices. The company's products range from low end cell phone batteries, to state of the art, high capacity batteries.

NewPower expects to generate revenue of approximately USD20.1 million in 2009 and USD27.4 million in 2010. NewPower expects to generate net income of USD1.5 million in 2009 and at least USD2.5 million in 2010.

According to Fushun Li, New Energy's chief executive officer, one of the benefits of this vertical integration is that since the company will now be manufacturing lithium-ion batteries from start to  finish, the NewPower acquisition will enable New Energy to capture additional margin in their finished battery distribution business. As a result of the acquisition synergies, he expected NewPower to contribute more than the USD2.5 million of net income projected for 2010 on a standalone basis.