SmartHeat, Inc. (SmartHeat) has signed a new project co-operation agreement with Fluor (China) Engineering and Construction Co., Ltd (Fluor), a subsidiary of Fluor Corporation to supply high end All-Welded Plate Heat Exchange (PHE) energy savings equipment based on the company's energy savings technology. High end All-Welded PHE is a custom designed PHE product that is used in critical industrial and the engineering processes.

SmartHeat expects extra product contracts from Fluor for both standard and the custom high end All-Welded PHE products in 2009.

James Wang, chief executive officer of SmartHeat, commented: ‘Fluor is a world renowned market leader in complex project management. Today’s contract announcement with Fluor reflects continued recognition by global blue chip companies of SmartHeat’s highly effective energy savings products. 2008 has been a highly successful year for SmartHeat with explosive earnings growth in a favorable market environment. We look forward to multiple developments with other global players as well.’