China Automotive Announces Election of New Director

WUHAN, Hubei, China, July 17 -- China Automotive Systems, Inc. , a leading power steering components and systems supplier in China, today announced the election of Mr. Guangxun Xu, as a new independent non-executive director to the Board. Mr. Xu has also been appointed to the audit committee, the compensation committee and the nomination committee of the board.

With a professional career in the finance field spanning over 25 years, Mr. Guangxun Xu currently serves as the leader of NASDAQ Listing Services Limited, a company he founded in April 2004. His practice focuses on providing package services on US and UK listings, advising on and arranging for Private Placements, PIPEs and IPOs, pre-IPO restructuring, M&A, Corporate and Project Finance, IPOs, corporate governance, post-IPO IR and compliance, Risk Control, etc. Prior to founding NASDAQ Listing Services Limited, Mr. Xu served as a managing director with the NASDAQ Stock Market International, Asia for over 10 years. He holds an MBA from Middlesex University, London.

Mr. Hanlin Chen, the Chairman and CEO of China Automotive Systems, commented, ''we are very pleased to have Guangxun Xu join the board. He brings substantial capital market and financial experience to help strengthen our corporate governance and internal control. As China Automotive Systems furthers its expansion, our new director will prove to be a tremendous asset to the company.''

CAAS also announced the expiration of the directorship of Ms. Liping Xie and the resignation of Mr. Guofu Dong from his position on the board.

''The Board acknowledges the contribution that Mr. Guofu Dong has made during his time as a Director, where he assisted in the development of the Company's strategy and improvement to corporate governance. We wish Mr. Dong success in his future business pursuits.'' Mr. Chen added.

With the change to the board of directors, four of the company's seven directors are now independent non-executive directors.

About China Automotive Systems

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 seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of 800,000 sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised 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/ .