Zoning Decision Reversed Allowing Large Expansion at BYD's Xi an China Auto-Manufacturing Site

XI'AN, China--April 4, 2011: Reversing a previous zone ruling, China’s Ministry of Land and Resources has officially sold 86 acres (350,000 sq-m) of land to BYD March 25th, 2011 in an open public bidding for industrial expansion --a huge victory for BYD and an economic boost for the struggling province of Shaanxi. The original lease of land and a large-scale vehicle manufacturing expansion at BYD’s Xi’an Plants were halted Sept 30th, 2010 by the Ministry, fining BYD for premature construction in an ‘agriculturally-zoned’area. Chinese officials have now allowed a rezoning of the land in question from ‘agricultural’to ‘industrial.’

Instead of leasing 112 acre’s of land from the Xi’an Economic Development group (BYD’s original plan), BYD was granted acquisition rights to 86 acres (350,000 sq-m). The buildings and other facilities previously erected on the land (reported as ‘factories’, though unfinished) have been returned to BYD as part of the acquisition. BYD paid approximately $9.0M USD (RMB 59 million) for the total purchase. BYD is expected to sign the final land grant contract before April 11^th 2011.

When complications with the development of the property first arose in October 2010 and the Chinese Government confiscated seven (7) partial factories, BYD committed to restarting construction as soon as appropriate zoning could be achieved. BYD now plans to complete the promised Phase II expansion and has already started recruiting employees for training, creating up to an additional 70,000 job opportunities. When Phase II is completed, BYD’s Xi’an Plants will have an unprecedented annual production capacity of over 700,000 vehicles.

About BYD

BYD is ranked #1 at the top of Bloomberg’s and BusinessWeek's 2009 Tech 100 List and is the leading manufacturer of advanced, environmentally-friendly battery technologies like the BYD’s Iron Phosphate battery. BYD’s solar panels and LED Lighting systems have TUV/CE and UL listings, and the company enjoys rapid growth in consumer electronics space and automobile manufacturing under its BYD brand. With investments from Warren Buffett (Berkshire Hathaway) and MidAmerican Energy Holdings, today, BYD is the fastest-growing Chinese automotive and green energy technology manufacturer. The Company trades on the Hong Kong exchange (HKE) under the ticker numbers (HK.0285 --BYD Electronics) and (HK.1211 --BYD Company Ltd). For more information, visit BYD Electronics or email bydpr@byd.com.