China Geely Group Moves Headquarters To Hangzhou

    HANGZHOU, Zhejiang, China, Jan. 27 /Xinhua-PRNewswire/ -- China Geely
Group, a private automotive company, announced today it has moved its
headquarters from Ningbo to Hangzhou, both of eastern Zhejiang province.
Hangzhou Zhijiang Holiday Resort held a ceremony for Geely on 16 Jan 2003.
Jin Shengshan, city vice mayor; Li Shufu, chairman of Geely Group; Xu Gang,
CEO of Geely Group; leaders of the Hangzhou Government; and representatives of
12 Chinese banks, were all present for the proceedings.
    During the ceremony, the vice mayor of Hangzhou explained, "Because China
Geely Group has moved its management, marketing and R&D headquarters to
Hangzhou, it will prove a solid base for the city to build on.  By attracting
more automobile companies, Geely Group will help provide a bright future for
the city of Hangzhou."
    Li Shufu, chairman of Geely Group said, "Moving our headquarters to
Hangzhou will be one of the milestones in Geely Group's development.  Based
here, we believe that Hangzhou will prove to be a key element in the
development and success of three major new projects that we began developing
last year: with the aim of reaching sales revenues of RMB80 billion per annum
within 12 years."  He ended by adding, "Our ultimate goal is to produce
affordable cars for the masses."
    Geely Group has already set up its investment and development centres in
Beijing and Shanghai respectively.  Moving to Hangzhou, Zhejiang's province
capital, Geely Group will benefit in terms of favourable investment
environments and support from the local government.  Hangzhou, centrally
located within other Geely Group production plants, is only an hour's drive
from their other key locations.  Zhejiang University, also located in Hangzhou,
is considered one of China's key universities and will provide a good
knowledge base for Geely Group.

    About China Geely Group:
    Since its establishment in 1986, China Geely Group has developed into a
multi-structured enterprise, manufacturing cars, motorcycles, decoration
materials and investing in tourism, real estate and higher education.  Geely
had sales of RMB2.25 billion in 2001.  By the third quarter of 2002, its sales
reached RMB1.98 billion.  The company was ranked among China's top 500
enterprises last year according to a survey conducted by the China Enterprise
Confederation (CEC) and the China Enterprise Directors Association (CEDA).

    For more information on China Geely Group, please contact:

     Chen Jiacai (Tom Chen), Director of International Cooperation Department,
     Phone: +86-571-87760216
     Fax:   +86-571-87760191
     Email: gjhz@geelycars.com
     Web:   http://www.geely.com