J.M. Dutton & Associates Announces Investment Opinion on SORL Auto Parts: SORL Auto Parts Speculative Buy Rating in Initiating Coverage by J.M. Dutton & Associates

EL DORADO HILLS, Calif.--June 30, 2004--J.M. Dutton & Associates initiates coverage of SORL Auto Parts (OTCBB:ECVL) with a Speculative Buy rating and a $10.80 target price (Adjusted for the pending 1-15 reverse split). The 21-page report by J.M. Dutton senior analyst Winnie Tang, CFA, is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Multex, and other leading financial portals. Effective July 18, its ticker is SORL.

We are initiating coverage on SORL Auto Parts with a Speculative Buy rating. SORL is an automobile components manufacturer in China producing automotive air brake valves and hydraulic brake valves, mainly for heavy vehicles. The Company's products are being distributed both in the People's Republic of China (PRC) and the global market. In our opinion, SORL Auto Parts offers investors a unique opportunity to invest in China's fast-growing auto component market, which is valued at more than $90 billion. SORL Auto Parts not only has a leading role in the brake valves business in China but also is paving the way for rapid expansion into the global markets. We expect the Company to report revenues and EPS (post reverse split) of $46.4 million and $.33 in 2004, rising to $64.9 million and $.44 respectively in 2005.

We believe that the stock provides direct exposure to the budding automobile industry in China. On the back of capacity expansion and margin expansion, we forecast earnings a compound annual growth rate (CAGR) of 36% over 2004-06. The Company offers not only superior growth prospects, but also a high return on equity ratio, which is estimated at 40.6% in 2004. Our target price of $10.80 ($0.72 before the planned 1-for-15 reverse split) is based on a forward P/E ratio of 25x 2005 earnings. Investors should, however, be aware of the very limited trading volume of the stock and that insiders own 97.5% of the outstanding shares.

About J.M. Dutton & Associates

J.M. Dutton & Associates is one of the largest independent investment research firms in the U.S. Its 24 senior analysts are primarily CFAs, have expertise in many industries. J.M. Dutton & Associates provides continuing analyst coverage of over 70 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $33,000 prepaid before commencement of our research activities. We received $30,000 from the Company for coverage for the year, and do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.