Harbin Electric Commences Closing Process for "Going Private" Transaction

Harbin Electric, Inc.

today announced it has commenced the closing process of the merger contemplated by the Agreement and Plan of Merger, dated June 19, 2011, as amended, pursuant to which the Company will become a wholly-owned subsidiary of Tech Full Electric Company Limited, which is controlled by Mr. Tianfu Yang, the Company's Chairman and Chief Executive Officer. As part of the closing process, the Company has filed the Articles of Merger with the Nevada Secretary of State. Trading of the Company's common stock has been suspended on the NASDAQ Global Select Market as of market close today. NASDAQ has filed a notification of removal of listing and registration on Form 25 with the Securities and Exchange Commission with respect to Harbin Electric's common stock. As previously announced, at the Company's Special Meeting of Shareholders held on October 29, 2011, the Merger Agreement was approved by approximately 90.6% of the outstanding shares of Harbin Electric common stock and approximately 84.2% of total unaffiliated shares of Harbin Electric, satisfying the majority of unaffiliated stockholders voting requirement set forth in the Merger Agreement.