China Automotive Systems and Sensor System Solutions Announce Letter of Intent

WUHAN, Hubei, China and IRVINE, Calif., Dec. 5, 2005; China Automotive Systems, Inc. , a leading power steering components and systems supplier in China and Sensor System Solutions, Inc. (3S), (BULLETIN BOARD: SSYO) , a manufacturer of Micro-Electro-Mechanical- Systems (MEMS) sensors, intelligent sensor interface electronics and intelligent embedded control systems, today announced a new project for its joint venture to manufacture and distribute Manifold Absolute Pressure (MAP) and Temperature & Manifold Air Pressure (TMAP) sensors, as well as provide technical and commercial support to one of India's largest automobile manufacturers.

In April 2005, China Automotive Systems and 3S announced a joint venture agreement to produce sensors for the Chinese automotive market. That joint venture will operate as Universal Sensor, Inc., and will manage this project. This phase of the project is expected to be in place for three years.

This project will expand the joint venture agreement beyond China and into the growing Indian automotive market. According to industry analysts, the Indian auto industry has been the recipient of major funding and has come of age, upgrading itself in the past few years to meet global standards.

Chairman and Chief Executive Officer of China Automotive Systems, Hanlin Chen commented, "This is the first of many projects for our joint venture and is a strategic opportunity for us to strengthen an existing partnership with Sensor System Solutions, maintain technological leadership and extend our global reach."

Chief Executive Officer Michael Young of Sensor System Solutions said, "Our TMAP sensors have successfully passed through the lab testing phase for our customer, and the sensors are now being road tested. We are moving ahead quickly and expect to be in the production phase in late 2006. The production quantity is estimated to be approximately 200,000 units in 2007 and could ramp up to approximately 1 million units by 2010. Our products are performing to strict specifications, and we are very pleased to be in the initial growth phase of this market."

Mr. Chen added, "Once the sensors pass the final testing phase, we will begin the production phase of the program. We look forward to working with Sensor Systems Solutions' team of engineers as they develop the products that will help meet the increasing demands of a new and growing automotive industry in Asia and in other markets."

About China Automotive Systems, Inc.

Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through four Sino-foreign joint ventures. The Company's product offering encompasses a full range of auto parts which are incorporated into steering systems for both passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering and 307 models of power steering with an annual capacity of 600,000 sets, steering columns, steering oil pumps and steering hoses. Its customer base comprises of leading Chinese auto manufacturers such as China FAW Group, Corp., Donfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. etc. For more information, please visit http://www.caasauto.com/ .

About Sensor System Solutions (3S)

3S is engaged in the design and manufacture of sensor components and sensor system solutions. These products are marketed to a variety of OEM and end-product manufacturers, including the medical, chemical, oil and gas industries. 3S's strategy is to integrate the Company's numerous intellectual properties into intelligent interface electronics and sensors enabling "smart products" that provide enterprises with an unbroken stream of real-time information without human attention or intervention. 3S markets these products through various strategic partners. For more information, please contact us at 949-855-6688 or visit us at http://www.corp3s.com/ .