SORL Auto Parts Granted Preferential Income Tax Treatment Through 2011

ZHEJIANG, China, December 31, 2008: SORL Auto Parts, Inc. , a leading manufacturer and distributor of commercial vehicle air brake valves and other auto parts in China, today announced that China's State Administration of Taxation has officially confirmed that the Company's subsidiary, Ruili Group Ruian Auto Parts Co., Ltd. ("Ruian Auto Parts"), is entitled to preferential tax treatment, which resulted in a tax refund that SORL included in its income statement for the second quarter of 2008. As a result, for the years 2007 and 2008, Ruian Auto Parts is entitled to an income tax exemption on all pre-tax income generated by the company above its pre-tax income generated in the fiscal year 2006. Additionally, the Company will enjoy a 50% exemption from the applicable income tax rate of 25% on any pre-tax income above its 2006 pre-tax income, to be recognized in the years 2009, 2010 and 2011.

The Company increased its investment in Ruian Auto Parts as a result of its financing in December, 2006. In accordance with the Income Tax Law of the People's Republic of China on Foreign-invested Enterprises and Foreign Enterprises, Ruian Auto Parts is eligible for additional preferential tax treatment and the application for such treatment was submitted in 2007.

Xiaoping Zhang, SORL Auto Parts' CEO and Chairman, said, "We are very glad to be granted the preferential tax treatment, which benefits our bottom line through 2011. We will continue to strengthen our corporate tax planning efforts and keep abreast of any future developments of the relevant tax law to realize any potential of enhancing our profitability and bringing our shareholders additional returns."