Brilliance China Automotive Holdings Limited: Proposed Formation of Joint Venture with BMW

HONG KONG, March 16 -- The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

The Board announces that the Company has today received the formal approval from the Chinese Government for the feasibility study for the establishment of a joint venture between BMW and an indirect subsidiary of the Company in the PRC. It is currently expected that the contract for the Joint Venture will be finalized and signed by the parties by the end of March or in early April. Further announcement in relation to the formation of the Joint Venture will be made by the Company as and when required.

The board (the "Board") of directors (the "Directors") of Brilliance China Automotive Holdings Limited (the "Company"; together with its subsidiaries, the "Group") announces that the Company has today received the formal approval from the Chinese Government for the feasibility study for the establishment of a joint venture between BMW and an indirect subsidiary of the Company in the People's Republic of China ("PRC") (the "Joint Venture").

It is currently expected that the contract for the Joint Venture, containing terms of the Joint Venture, will be finalized and signed by the parties by the end of March or in early April and the Joint Venture will commence production of BMW -- designed sedans in the second half of this year. Further announcement in relation to the formation of the Joint Venture will be made by the Company as and when required.

The Directors are of the view that the establishment of the Joint Venture represents an important strategic move by the Group to strengthen its position as one of the important players in the sedan industry in the PRC and also enables the Group to successfully capture the business opportunities in the fast growing automobile industry in the PRC.

   By order of the Board
   Brilliance China Automotive Holdings Limited
   Wu Xiao An
   (also known as Ng Siu On)
   Chairman