China Automotive Brake Systems INC. Announces ABS Factory Approved as 'Chinese Key Information Technology Industrialization Project in 2006 (Automobile Electronic Group)'

XI'AN, China, Sept. 22 /Xinhua-PRNewswire/ -- China Automotive Brake Systems INC. announces that after Changchun was listed in the first batch of Chinese automobile and component exporters by the Ministry of Commerce of P.R. China and the National Development and Reform Commission, the ABS Factory, established by China Automotive Brake Systems INC. and China FAW Group Corporation, was approved to be the ''Chinese Key Information Technology Industrialization Project in 2006 (automobile electronic group)'' by the National Development and Reform Commission, which is one of the only two ''Key Information Technology Industrialization Projects in 2006 (automobile electronic group)'' in the automobile electronics industry, and will also receive a considerable sum of funds from the Chinese government. China FAW Group Corporation, one of the largest autos manufacturers in China, realized RMB118.3 billion ($14.511 billion) in sales revenue in 2005 and is ranked 470th in the Fortune 500.

Zhenping Wang, the chairman of China Automotive Brake Systems INC., said, ''We're very glad that the ABS Factory was recognized by the Chinese government, and we will make full use of this opportunity, still focusing on the ABS sector for Chinese business automobiles, and insist on substantial development strategies and capital operation strategies. We plan to be the Chinese ABS supplying center for Chinese business automobiles through manufacturing and developing ''ABS/ASR integrated products,'' ''Tire Pressure Monitoring Systems (TPMS),'' and ''Anti-Spin Regulation (ASR),'' increasing its R&D ability, marketing ability, enlarging of market shares, entering capital market, and introducing strategic partners to realize high growth rates.''

China Automotive Brake Systems INC.

China Automotive Brake Systems INC. is a Chinese hi-tech joint-stock enterprise which is engaged in the manufacturing, R&D and distribution of ABS (Anti-lock Braking System) products for business autos and other related auto spare parts. Focusing on its industry development strategy -- "producing the current products, R&D on new products and reserving new products ready to be developed,'' the Company grasped the international ABS technology development tendency, established and perfected the human resource system and has established an over-China sales network, which increases the speed of information feedback and after-sales service. It persists in ''one new and three highs'' development ideas -- "new thought, high technology, high starting point and high growing speed.'' China Automotive Brake Systems INC. accelerates its growth with its high technology, large marketing shares and innovative cooperate culture, and attempts to be an innovative Chinese enterprise, to be the Chinese ABS center for business autos through self- R&D, innovation and more and more strong competitiveness.

ABS Factory of China Automotive Brake Systems INC.

In 2003, China Automotive Brake Systems INC. and China FAW Group Corporation established ABS Factory which produces ABS with high quality for the business cars produced by China FAW Group Corporation. China Automotive Brake Systems INC. holds 51% of the shares of the ABS Factory for its technology and equipment advantages.

  For more details, please contact:

  China Automotive Brake Systems INC.
   Liping Ma
   Tel:   +86-29-6296-1921
   Email: xabh_securities@126.com