A-Power Energy Generation Systems, LTD Securities Litigation

Welcome to A-Power Energy Generation Systems, LTD Securities Litigation website

The following is a summary of information presented in more detail in the Notice of Pendency and Settlement of Class Action (the “Notice”), which potential Class Members should have received in the mail, and which you can access by visiting the Class Notice page. Since this is just a summary, you should see the full Notice for additional details.

Please read this information carefully. If you are a Class Member (as defined below), your rights will be affected by these proceedings and you may be entitled to receive benefits under a proposed settlement.

ALL PERSONS WHO PURCHASED OR OTHERWISE ACQUIRED A-POWER CORPORATION (“A-POWER”) COMMON STOCK DURING THE PERIOD MARCH 17, 2008 THROUGH AND INCLUDING JUNE 27, 2011 (THE “CLASS PERIOD”).

If you purchased or otherwise acquired the securities of A Power Energy Generation Systems, Ltd. (“A Power”) during the period from March 17, 2008 through and including June 27, 2011, you could get a payment from a class action settlement (the “Settlement”). Under law, a federal court has authorized this notice.

If approved by the Court, the settlement will provide $3,675,000, plus interest (the “Settlement Amount”), to pay claims of investors who purchased or otherwise acquired A Power securities during the period from March 17, 2008 through and including June 27, 2011 (the “Class Period”).

The Settlement represents an estimated average recovery of $0.09 per share of A Power common stock estimated as purchased and damaged during the Class Period, or, as described below, $0.07 per share if the Court approves counsel for Lead Plaintiff’s request for attorneys’ fees, reimbursement of litigation expenses, and a Lead Plaintiff award. A share may have been traded more than once during the Class Period. This estimate solely reflects the average recovery per share of A Power stock estimated as purchased and damaged during the Class Period. The indicated average recovery per share will be the total average recovery for all purchasers of that share. This is not an estimate of the actual recovery per share you should expect. Your actual recovery will depend on the aggregate losses of all Class Members, the date(s) you purchased and sold A Power securities, and the total number and amount of claims filed.

Attorneys for the Lead Plaintiff (“Class Counsel”) intend to ask the Court to award them fees of $808,500, or twenty-two percent (22%), of the Settlement Amount, reimbursement of litigation expenses of no more than $125,000, and an award totaling $7,500 to the members of the Lead Plaintiff A Power Investor Group. Collectively, the attorneys’ fees and expenses are estimated to average $0.02 per share for the 41.1 million shares of A Power stock estimated as purchased and damaged during the Class Period. If approved by the Court, these amounts will be paid from the Settlement Fund.

The approximate recovery, after deduction of attorneys’ fees and expenses approved by the Court, is an average of $0.07 per share of A Power stock estimated as purchased and damaged during the Class Period. This estimate is based on the assumptions set forth in the preceding paragraph. Your actual recovery, if any, will vary depending on your purchase price and sales price, and the number and amount of claims filed.

The Settlement resolves all claims in the lawsuit against A Power, certain of its officers and directors, and A-Power’s former auditor, MSCM LLP (“MSCM”) for allegedly making false and misleading statements in violation of federal securities laws. Plaintiffs allege that Defendants failed to disclose, among other things: (1) that A-Power issued financial statements for the years ending December 31, 2008 and 2009 that allegedly significantly overstated its actual revenues and total assets, and understated total liabilities, in violation of United States Generally Accepted Accounting Principles (“GAAP”), and (2) the Company failed to disclose the alleged related party nature of certain significant transactions, and failed to disclose alleged additional related parties in violation of GAAP. Defendants A Power Energy Generation Systems, Ltd., Dilip R. Limaye, Robert B. Leckie, Remo Richli, and MSCM (collectively, the “Settling Defendants”) deny all allegations of misconduct.

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