Shanghai Prime Machinery Co., Ltd. announced that with effect from February 22, 2013, Mr. Zheng Yuanhu resigns as Director and chairman of the Board. Mr. Zheng Yuanhu has tendered his resignation to the Board to pursue his career development. Mr. Zheng Yuanhu confirmed that there is no disagreement between him and the Board during his term of office and there is no matter relating to his resignation that needs to be brought to the attention of the Shareholders.

Following the approval by the Shareholders at the EGM, the Board announced that, with effect from February 22, 2013, Mr. Wang Qiang has been appointed as Director. Mr. Wang Qiang, aged 55, is a senior economist and senior political affair officer. He currently serves as director, the deputy secretary of committee of Communist Party of China and executive vice president of SEG, the deputy secretary of committee of Communist Party of China of Shanghai Electric Group Company Limited, and the secretary of committee of Communist Party of China of Shanghai Electric Assets Management Company Limited.

The board also announced that Mr. Wang Qiang has been appointed as the chairman of the third session of the Board. The term of office of Mr. Wang Qiang commenced immediately and will end upon the expiration of term of the third session of the Board.