Sun Motor International Announces Financial Results for the Year to March 31 2006

HONG KONG, July 18 /Xinhua-PRNewswire-FirstCall/ -- Sun Motor International Ltd. (BULLETIN BOARD: SNMO) ("The Company") today announced its operating results for the year to 31 March 2006.

Net profit for the twelve months was $3.1 million, or $0.11c per share, on US$51 million in revenues, compared with US$1.3 million or $0.04c per share on US$48.6 million in sales for the prior year. Included in net profit was a non-recurring income of approximately $2.5 million arising from the sale of one of the company's operating facilities and non-recurring expenses of approximately $500,000 incurred as a result of the reverse merger public listing process undertaken during the year.

In announcing this result, Simon Shi, Chairman of Sun Motor commented: "I am very pleased to be able to report a strong net profit result in our first year as a public company in the United States, with our net earnings per share increasing by over 200% in the period.

"It is important to note, however that in breaking down the components of our operating profit, one off charges relating to our public listing, together with exceptionally high raw material (copper) prices during the year, negatively impacted our net margin.

"Given recently announced price increases which we have been able to negotiate with our major customers, and our continuing move into higher value products, we believe that our operating margins will improve significantly over 2007 enabling us to continue the improvement in earnings per share evident over the past 2 years."

Mr Shi continued, "We continue to receive an increasing stream of orders from our multinational clients and are actively working on expanding our assembly facilities to accommodate this demand to ensure that we can accelerate our sales growth."

About Sun Motor International, Inc.

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

Forward-Looking Statements:

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the Company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices, and other economic factors. The Company assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

  For More Information Contact:

   Dr Alan Ghaffarian, President
   Sun Motor America Inc.
   Tel:   +1-408-3544184
   Email: alan@sunmotoramerica.com