Dutton Associates Announces Investment Opinion: SORL Auto Parts Rating Maintained At Strong Speculative Buy By Dutton Associates

EL DORADO HILLS, Calif.--July 13, 2005--Dutton Associates continues its coverage of SORL Auto Parts (OTCBB:SAUP), maintaining its rating at Strong Speculative Buy with a lower price target of $8.50. The report by Dutton senior analyst Silvia Kwan, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and other leading financial portals.

Given the impressive first quarter 2005 results for SORL Auto Parts, Inc., strong demand for its brake valve products and its continuous success in penetrating the international markets, we reiterate our Strong Speculative Buy rating on the stock. Although we are revising down our 12- to 18-month target price to $8.50 due to a slight downward revision in earnings forecast, the stock still offers an upside potential of 26% from the current level. The Company continues to report success in its sales expansion efforts, both domestically and internationally. Domestic sales from the aftermarket and from original equipment manufacturers went up 69% and export sales surged 40% in Q1 2005. Sales of heavy-duty trucks continue to grow strongly, despite a slowdown in overall auto sales amid credit tightening in the People's Republic of China (PRC). Net profit is expected to increase at a compound annual growth rate of 22% 2004-2006. At $8.50, the Company would be trading at about 18 times and 16 times our fully diluted earnings per share of $0.47 and $0.54 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 100 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.