Sun Motor Announces Increase in Contract Price for Major Customers

Hong Kong, May 25, 2006 /Xinhua-PRNewswire-FirstCall/ -- Sun Motor International, Inc. (BULLETIN BOARD: SNMO) ("The Company") today announced that it has agreed with a number of key customers that the sale price for micro motors for use in office equipment and home appliances to be increased by 10 to 15%. This negotiated increase comes against the background of recent increases in the price of raw materials, particularly copper, which are used in the manufacturing process.

In announcing this initiative, Simon Shi, Chairman of Sun Motor commented as follows; "It is gratifying to note that our relationship with our key customers enables us to increase prices, even as competition in the industry is exerting forces in the opposite direction. We can attribute this to the excellence Sun Motor has achieved in the quality of its product. This level of quality, together with our commitment to customer service has meant in the past that our customers are willing to pay a little more for the products and services we are able to provide and this trend is reflected in this round of increases. We will also ensure that our capacity allocation reflects the positive impact of higher unit prices available from key customers."

Mr Shi concluded: "As we continue to expand our production of higher value AC and high end DC motors, Sun Motors' profit margins will keep improving. We will continue to work closely with our customers in expanding and developing our product range and building our position as a leading player in the micro motor industry."

About Sun Motor International, Inc.

Founded in 1983, Sun Motor designs, manufactures and markets micro motors for a wide range of applications including toys, electrical appliances, office equipment, automobile accessories, cameras, DVDs, and MP3 players. Sun Motor's customers are located in Asia, Europe and North America. Additional information is available at www.sunmotor.com.hk .

  Contacts:

   Dr. Alan Ghaffarian
   President
   Sun Motor America
   Tel:   +1-408-354-4184
   Email: Alan@Sunmotoramerica.com