AUSTIN, Texas--(BUSINESS WIRE)--To address China’s growing need for power quality, critical backup power systems manufacturer Active Power (NASDAQ: ACPW) has created a formal legal entity in China and opened an office in Beijing. Huan Wang, a seasoned technology veteran, will serve as Active Power’s sales director in China.

The Asia market for UPS (uninterruptible power supplies) systems was worth approximately $2 billion in 2009 with China alone generating over $500 million, according to IMS Research. The China UPS market is projected to grow at a 12 percent compound annual growth rate between 2009-2014, second only to India.¹

This increase is due to the fact many China based companies and government organizations will continue to build out local information technology infrastructure as the country’s technology market grows stronger. This rapid expansion will place an even greater demand on China’s power grid. As a result, this will create power quality problems due to the strain on the country’s grid infrastructure which will in turn increase the need for highly efficient and reliable UPS technology.¹

“It makes excellent business sense to establish an office in China to support our strategy of expanding distribution and building brand worldwide,” said Dietmar Papenfort, vice president, Sales for Europe, Middle East and Africa and Asia Pacific at Active Power. “This decision follows encouraging sales of our UPS and containerized solutions in China; the China Ministry of Information Industry product certification we received in 2008; and also complements our existing sales and service organization in other parts of Asia.”

Active Power continues to generate market traction in China, particularly with utility subsidiaries part of the China National Power Grid. 12 containerized power systems have been deployed in China since 2008, with two systems most recently delivered to Shanghai Municipal Electric Power Company for their mobile continuous power solutions fleet. In June 2008, Active Power announced an order for eight PowerHouse systems from another utility subsidiary. These systems are currently being used for mobile backup power in emergency situations.

About Active Power

Active Power provides efficient, reliable and green critical power solutions and uninterruptible power supply (UPS) systems to enable business continuity in the event of power disturbances. Founded in 1992, Active Power’s flywheel-based UPS systems protect critical operations in datacenters, healthcare facilities, manufacturing plants, broadcast stations and governmental agencies in more than 40 countries. With expert power system engineers and worldwide services and support, Active Power ensures organizations have the power to perform. For more information, please visit www.activepower.com.

Cautionary Note Regarding Forward-Looking Statements

This release may contain forward-looking statements that involve risks and uncertainties. Any forward-looking statements and all other statements that may be made in this news release that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Specific risks include delays in new product development, product performance and quality issues and the acceptance of our current and new products by the power quality market. Please refer to Active Power filings with the Securities and Exchange Commission for more information on the risk factors that could cause actual results to differ.

Active Power, CleanSource and CoolAir are registered trademarks of Active Power, Inc. The Active Power logo and PowerHouse are trademarks of Active Power, Inc. All other trademarks are the properties of their respective companies.

¹ IMS Research, The World Market for Uninterruptible Power Supplies 2010 Edition, June 2010