China Automotive Systems Announces First Purchase Order From a Global North American Automotive Manufacturer

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WUHAN, Hubei, China, November 11, 2008: China Automotive Systems, Inc., a leading power steering components and systems supplier in China, today announced it has received its initial purchase order for power steering gears from a global automotive manufacturer headquartered in North America. This first purchase order is part of an agreement to supply power steering gears to this automotive manufacturer.

This agreement represents a major milestone as it is the first contract for China Automotive Systems in the North American original equipment manufacturer (OEM) market. These power steering gears are intended for one model of a well-known automobile brand. The vehicle dynamic evaluation of these gears has shown them to be compatible or superior to the current product.

Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "We are very excited to have been selected by this major North American automotive manufacturer to become a supplier of important power steering gears. This contract win is further evidence of our dedication to quality products, our R & D and engineering capabilities, and the Company's financial strength and large-scale production. We were able to meet the strict high- standard quality requirements from a global automotive OEM, which positions us to successfully compete in the global marketplace. As a leading independent power steering component and systems supplier in China, we are on our way to broaden our geographic reach and to penetrate into other world-class automotive OEMs."