Related Party Transactions and Outside Related Director Information

China Energy Savings Technology, Inc. (CESV.PK)

12/20/2005 10K Information

As of September 30, 2005, the due from related a party amounted to US$123,602. A majority of this amount was generated from making cash advances to the shareholders for ordinary business expenses. In addition, certain shareholders had collected the payments on receivables on the Company's behalf from the customers and those payments had not been repaid to the Company by September 30, 2005 timely. Those amounts are unsecured, interest free and have no fixed terms of repayment.