Jinhao Motor Company Closes Acquisition of A Manufacturer of Motorcycles, Small Engines and Electric Vehicles and Enters into $30 Million Financing Agreement

ZHAOQING CITY, China--Jinhao Motor Company (OTC Bulletin Board: GIMCD) ("Jinhao Motor" or the "Company"), today announced that effective on August 11, 2010, the Company closed its Share Exchange Agreement with JinHao Power Holdings, Limited (“JinHao Power�??), a PRC based company engages in the production and distribution of motorcycles and small engines and electric vehicles. In addition, the Company entered into a Securities Purchase Agreement for the sale of $30 million of its securities. Mr. Chak Shing Tsoi was appointed as Chairman and Chief Executive of the Company and the Board of Directors also appointed, effective on or about August 21, 2010, Mr. John Chen, Mr. Stewart Ballard, Dr. Brian Peacock, Mr. Rodger Spainhower, Sr. and Dr. John Shen as Directors of the Company.

Jinhao Motor is primarily engaged in the production and distribution of motorcycles and small engines. The overseas market accounts for approximately 78.63% of our sales with the domestic market making up the remaining. JinHao Power has invested over $45 million into R&D for electric vehicles, and we have entered into exclusive patent license agreements for 2 patents to be used in the production of electric vehicles. In 2006, JinHao Power began a research and development of electric vehicles and in 2009. The Company established an electric vehicle manufacturing plant with over 215,000 square feet. JinHao Power has developed and manufactured prototypes of two models of electric vehicles, a compact two-door and a mid-size four-door, both of which are used in city and highway environments. Since October 2009, JinHao Power has delivered over 1,500 units of electric vehicles to its customers both domestically and internationally. JinHao Power has sales agency agreements with six distributors across China, and overseas has sales contracts with distributors from Spain, Finland, Italy, Chile and Thailand. The Company will be focused on developing distribution channels into the EU and the United States. The Company believes that its electric vehicles are priced much lower than similar models produced by other car manufacturers in the international market. Jinhao Motor’s primary strength lies in its existing strong global sales distribution network from our motorcycle business. The Company plans to leverage that strength and expand its business with electric vehicles.

On August 11, 2010, the Company entered into a securities purchase agreement with certain accredited investors, for 6,857,204 units at a purchase price of $4.37496 per unit. Each unit will consist of one share of the Company’s newly-designated Series A Redeemable Convertible Preferred Stock, and one warrant to purchase 0.5 share of the Company’s Common Stock. The Series A Preferred Stock will be convertible into one share of the Company’s Common Stock. The Warrants will be immediately exercisable at a per share price of $6.56244. The closing is expected to occur within thirty (30) days.

On August 11, 2010, Mr. Chak Shing Tsoi was appointed as a Director of the Company and the Board of Directors also appointed, effective on or about August 21, 2010, Mr. John Chen, Mr. Stewart Ballard, Dr. Brian Peacock, Mr. Rodger Spainhower, Sr. and Dr. John Shen as Directors of the Company. In addition, our Board of Directors appointed Mr. Tsoi to serve as our Chief Executive Officer, Dr. Shen to serve as the President, and Mr. Hai Ming Liu to serve as the Director of Finance and acting Chief Financial Officer.

WorldWide Capital (Asia) acted as the Company’s Exclusive Financial Advisor.

Jinhao Motors’ CEO and Chairman, Mr. Tsoi said, "We are very pleased to announce the closing of our acquisition of JinHao Power, entering into the financing agreement, and the appointments to our Board of Directors. We have reached a major goal of becoming a public company in the United States which we believe will allow us to broaden our investor base, create a liquid market for our stock, and financially support the accelerated growth of our business as we strive to become a leader in the electric car industry.�??

About Jinhao Motor Company

Jinhao Motors is primarily engaged in the production and distribution of motorcycles and small engines for overseas and the domestic markets. In 2006, we began a research and development of electric cars and in 2009 we established an electric vehicle manufacturing plant. We have developed and manufactured prototypes of two models of electric vehicles, a compact two-door and a mid-size four-door, both of which are used in city and highway environments. Since October 2009, we have delivered over 1,500 units of electric vehicles to our customers both domestically and internationally. We invested over $45 million into R&D for electric vehicles, and have entered into exclusive patent license agreements for 2 patents to be used in the production of electric vehicles. We have signed sales agency agreements with six distributors across China and overseas we have signed sales contracts with distributors from Spain, Finland, Italy, Chile and Thailand. We are also focused on developing distribution channels into the EU and the United States. Our electric vehicles are expected to be priced much lower than similar models produced by other car manufacturers in the international market. Our primary strength lies in our existing strong global sales distribution network from our motorcycle business. As of December 31, 2009, we employed a total of 440 employees. For the three months ended March 31, 2010, revenue was $50,405,000 and net income as $6,438,000 or $0.13 per share. As at March 31, 2010 shareholders’ equity was $121,607,604 and total assets were $144,681,317. For additional information please visit www.jin-hao.com.

About Worldwide Capital

Worldwide Capital (Asia) Corporation is a financial advisory and consulting firm which specializes in emerging companies in the Asia Pacific region. Worldwide Capital also offer extensive consulting services, focusing on venture capital and mergers and acquisitions, SME financing, and various stages of financing. Through the experience, expertise and scope of financing operations from our senior officers, Worldwide Capital assist our clients to seize opportunities around the globe and its markets. Worldwide Capital is a rapidly growing firm with offices in San Francisco, Hong Kong, Beijing and Seoul, For additional information about Worldwide Capital please visit www.wwcap.com

Safe Harbor Statement - This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the company's ability to raise additional capital to finance the company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the company; the ability of the company to operate as a public company; the period of time for which its current liquidity will enable the company to fund its operations; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.