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Brilliance China Automotive Holding to Buy 2 Parts Makers

16 April 1998

Brilliance China Automotive Holdings Limited Announces Agreement to Purchase Interests in Two Automobile Components Companies

    HONG KONG, April 16 -- Brilliance China Automotive Holdings
Limited (the "Company") today entered into a stock purchase
agreement for the purchase of a 50% interest in Mianyang Xinchen Engine
Company Limited ("Mianyang"), a Sino-foreign equity joint venture engaged in
the production of gasoline engines, and a 51% equity interest in Ningbo Yuming
Machinery Industrial Company Limited ("Ningbo," and, together with Mianyang,
the "Target Companies"), a wholly foreign owned Chinese enterprise primarily
engaged in the production of automobile windows and window molding and
stripping.
    The interests in the Target Companies are to be acquired by purchasing
from Kings Whale Holdings Limited, a British Virgin Islands company, 100%
share interests in each of the two British Virgin Islands holding companies
that own the above mentioned equity interests in the Target Companies.  The
aggregate purchase price for these interests is Renminbi 408 million
(approximately US$49.15 million).  Closing of this transaction is scheduled to
occur in the second quarter of this year, and is subject to the completion of
a due diligence investigation and satisfaction of other customary conditions.
    The Company is currently the largest customer of both Mianyang and Ningbo,
and purchases their components to use in the Company's manufacture of
minibuses for the Chinese markets.
    Mr. Yang Rong, Chairman and President of the Company, was quoted as
saying, "We regard the purchase of the partial interest in these two
components suppliers as a significant step in our continuing efforts to
improve the quality and reduce the costs of both the underlying components and
our final product.  We also believe that, in light of the historical
performance of Mianyang and Ningbo, the high quality of the components
manufactured at their facilities and the benefits which we expect to realize
from these new partnerships, the proposed acquisition will provide significant
value to our company and its shareholders."
    The Company, incorporated in Bermuda, was established in 1992 to own a
51% interest in Shenyang JinBei Passenger Vehicle Manufacturing Company, Ltd.
("Shenyang Automotive"), a Sino-foreign joint venture enterprise established
in 1991.  Shenyang Automotive, located in Shenyang, the capital of Liaoning
Province and the commercial center of Northeast China, is the leading
manufacturer and distributor of minibuses within the People's Republic of
China.  The Company was the first with operations solely in China to list
directly on the New York Stock Exchange.

SOURCE  Brilliance China Automotive Holdings Limited