Dutton Associates Announces Investment Opinion: SORL Auto Parts Rating Increased to Strong Speculative Buy by Dutton Associates

EL DORADO HILLS, Calif.--May 6, 2005--Dutton Associates continues its coverage of SORL Auto Parts (OTCBB:SAUP), raising its rating to Strong Speculative Buy with a new price target to $9.20. The report by Dutton senior analyst Silvia Kwan, CFA, is available at www.jmdutton.com, as well as from First Call, Bloomberg, Zacks, Multex, and other leading financial portals.

Given SORL Auto Parts' impressive result in the full year 2004, growing demand in its products and its success in penetrating the international markets, we are upgrading our rating on the stock to Strong Speculative Buy. At the same time, we have revised our 12-18 month target price downward to $9.20 from $10.80, due to change in the U.S. stock market valuation environment. The Company continues to report success in its sales expansion efforts, both domestically and internationally. Domestic sales from the aftermarket and from OEM manufacturers went up 27% and export sales surged 105% in 2004. In addition, sales for heavy-duty trucks continue to grow strongly, despite slow down in the overall auto sales amid credit tightening in the PRC. Net profit is expected to increase 41% and 23% per annum in 2005 and 2006, respectively, with expansion in production capacity and improvement in operating profit margins. 2005 and 2006 revenues are forecast to be $64.6 million and $87.2 million, respectively. At our target price of $9.20, a potential upside of 200% from the current level, the Company would be trading at about 18x and 15x our revised fully diluted earnings per share of $0.51 and $0.63 for 2005 and 2006, respectively.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 95 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

Our annual research coverage, which currently costs US $33,000 prepaid, is 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $30,000 from the Company for 4 Research Reports with coverage commencing on 6/30/2004. We 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.