Minghua Group Obtains Support From The Shenzhen Bureau Of Foreign Trade and Economic Cooperation

SHENZHEN, China, July 25 -- On July 4, 2003, the Shenzhen Bureau of Foreign Trade and Economic Cooperation indicated that it would finance Minghua Group International Holdings Limited's (BULLETIN BOARD: MGHA) application to the International Organization for Standardization (ISO). Minghua will be seeking ISO 9000 Certification for Quality Management Systems and ISO 1400 Certification for Environmental Management Systems. The financing to be provided by the Shenzhen Bureau of Foreign Trade and Economic Cooperation comes in the form of a Chinese Yuan 150,000.00 (approximately, US$18,121) grant.

ISO 9000 certification is concerned with "quality management." It is focused on what an organization does to enhance customer satisfaction by meeting customer and applicable regulatory requirements and continually to improve its performance in this regard. ISO 14000 is primarily concerned with "environmental management". It is focused on what the organization does to minimize harmful effects on the environment caused by its activities, and continually to improve its environmental performance.

Minghua believes that it is important to obtain certification from ISO as a means of providing assurance to the business community and Minghua's future customers that Minghua meets the specified levels of quality and environmental management. Minghua also believes that certification process will assist Minghua in the implementation of enhanced procedures for compliance with business and regulatory norms.

There can be no assurance that Minghua will be successful in obtaining any ISO certification.

Minghua, through its subsidiaries, is the owner of patented technology relating to hybrid vehicles powered by a combination of a combustion diesel engine and an electric power system. Minghua is initially focusing its efforts on the Chinese public transportation sector. Its hybrid vehicles consist of four models (coaches and mini-buses) that can be used in this sector. Minghua is a public reporting company whose securities trade on the Over-the-Counter Bulletin Board under the symbol "MGHA".