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Brilliance China Exercises Sedan And MPV Project Option

2 January 2001

Brilliance China Automotive Holdings Limited Exercises Sedan And MPV Project Option

    NEW YORK, Jan. 2 Brilliance China Automotive Holdings
Limited ("the Company") today announced its 51 per
cent owned subsidiary Shenyang Jinbei Passenger Manufacturing Company, Limited
("Shenyang Automotive"), had exercised the Sedan and MPV Project Option and
entered into an agreement ("the Agreement") with China Automotive Company,
Limited ("CAC") on December 28, 2000.  CAC is an exempted company incorporated
in Bermuda with limited liability, and a wholly-owned subsidiary of Brilliance
Holdings Limited, the shares of which are all held by Mr. Yang Rong, a
Director on behalf of the State Administration of State Assets.  Under the
Agreement, Shenyang Automotive will acquire all of CAC's rights, titles and
interests in and to the Design and Engineering Agreements and the Technical
Assistance Agreement for a total consideration of RMB681.10 million
(approximately US$82.26 million).
    According to Mr. Yang Rong, Chairman and President of the Company, the
Agreement allowed the Company to realize one of its business strategies which
is to capture the anticipated growth in demand for passenger vehicles in the
PRC by expanding into sedan and multi-purpose vehicle.
    The Design and Engineering Agreements were entered into between CAC and
Technology and Design Consortium, pursuant to which Italdesign will provide
design, engineering and prototype construction work for a sedan and a
multi-purpose vehicle to be manufactured in the PRC.  The Technical Assistance
Agreement was entered into between CAC and The Motor Industry Research
Association in respect of the testing and the continuing development of the
sedan and the multi-purpose vehicle.
    The Agreement is unconditional and not subject to any approval by PRC
authorities.  Completion is expected to take place on or before January 10,
2001.  The consideration of the Agreement, which is determined after arm's
length negotiation between CAC and Shenyang Automotive by reference to the
costs and expenses in relation to the design, engineering and prototype
construction work and the testing of the sedan and the multi-purpose vehicle,
is payable at completion and to be funded from internal resources of Shenyang
Automotive.
    "The Directors of the Company are of the view that the exercise of the
Sedan and MPV Project Option will allow the Company to obtain the requisite
approvals from the relevant PRC authorities for the manufacturing and sale of
sedan and multi-purpose vehicle in the PRC, which will enhance and consolidate
our position in the country's automotive manufacturing industry," remarked
Mr. Yang.