China's Wonder Auto Technology to Acquire Control Stake in JWAA

JINZHOU CITY, Liaoning, China, Oct. 6, 2008 - Wonder Auto Technology, Inc. ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical and suspension parts in China, today announced that on October 1, it entered into an agreement to acquire the control stake of Jinan Worldwide Auto Parts Company ("JWAA").

Wonder Auto will pay a total cash consideration of RMB80 million for 65% in JWAA. The price will be adjusted downward or upward if JWAA's audited net income for the 12 months ended December 31, 2008 is lower than RMB19.48 million, or higher than RMB22.88 million. JWAA is currently the largest engine valve and tappets manufacturer in China. Its customers include some well-known automakers and engine manufacturers, including Shanghai VW, Tianjin Toyota, Ford Motor of the U.S., FAW Auto, Chery Auto, Geely Auto, Cummins Engine, Weifang Diesel Engine, and Shanghai Diesel Engine.

Mr. Qingjie Zhao, Wonder Auto's CEO and Chairman, commented, "The acquisition demonstrated our integration strategy of increasing market share by sharing the customer resources. Through the acquisition, we expect our current products to penetrate into JWAA's main market -- the Chinese diesel engine market, and JWAA's product to penetrate into Wonder Auto's main market -- the Chinese gasoline engine market. The acquisition will not only diversify our products offerings, but also further strengthen our market competitiveness with the resources sharing."

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