China Tractor Holdings, Inc. Reports Third Quarter 2008 Financial Results

CHANGCHUN, China November 22, 2008: China Tractor Holdings, Inc., a leading manufacturer of agriculture machinery and equipment in China, today announced financial results for the quarter ended September 30, 2008.

Revenue for the three months ended September 30, 2008 was $4,628,679, as compared to $1,379,683 for the three months ended September 30, 2007, an increase of $3,248,996 or 235%. The dramatic increase in sales revenue was mainly due to expansion of the Company’s operating capacity during the quarter. The Company has increased and improved the production of light and medium duty tractors to meet increasing demand from Chinese farmers for those products.

The gross profit for the three months ended September 30, 2008 was $999,656, an increase of $1,022,922, compared to a loss of $23,266 for the three months ended September 30, 2007. Net income for the three months ended September 30, 2008 was $147,462, compared to a net loss of $243,692 in the three months ended September 30, 2007.

Nine Month Ended September 30, 2008

Revenue for the nine months ended September 30, 2008 was $24,168,188, as compared to $7,753,348 for the nine months ended September 30, 2007, an increase of $16,414,840 or 212%.

Gross profit for the nine months ended September 30, 2008 was $2,840,917, an increase of $2,738,779, compared to $102,138 for the nine months ended September 30, 2007.

Comprehensive income for the nine months ended September 30, 2008 was $1,621,715, compared to $52,281 for the nine months ended September 30, 2007, an increase of $1,569,434, or 3002%.

Mr. Lau San, Chairman and Chief Executive Officer of China Tractor Holdings, Inc., commented, "We are very pleased with our financial performance for the third quarter of 2008, which demonstrates continued growth across all of our product categories. We are one of the direct beneficiaries of many favorable economic policies and industry trends in China, such as the Chinese government’s push for rural area development, as well as modernization of Chinese agriculture. With our own 'Chang Tuo' brand, which has been well known in China for over 50 years, and our strong balance sheet with over $30 million in assets and no debt, we are confident we can continue our market share expansion in the Chinese agricultural machinery market."

"This is also our first reporting quarter since we became a public listed company in the U.S.," concluded by Mr. Lau. "While we are excited about our current financial performance, we are more focused than ever on executing on our business plan, and more importantly, building long term value for all of our shareholders."