WUHAN, China, Dec. 5 /PRNewswire-Asia-FirstCall/ -- Wuhan General Group, Inc. (Nasdaq: WUHN) ("Wuhan General" or the "Company"), a leading manufacturer of industrial blowers and turbines, today announced that on December 3, 2008, the Company entered a service agreement to engage Ernst & Young (China) Advisory Limited ("Ernst & Young") to assist management, as part of its ongoing efforts to comply with Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX 404").
Ernst & Young will be providing consulting services to recommend solutions to fully comply with SOX 404, which requires the Company and its external auditor to report on the adequacy of the Company’s internal financial reporting and controls systems after documenting and testing financial reporting and control procedures. Ernst & Young will evaluate and document new procedures for the Company’s internal controls for corporate financial reporting as well as update the necessary information technology regulatory compliance integration.
"We look forward to working with Ernst & Young to reach full compliance with SOX 404," said Mr. Haiming Liu, Wuhan General’s Chief Financial Officer. "As a publicly traded company, Wuhan General has a responsibility to its shareholders to maintain strong internal controls by strictly adhering to procedures and providing full disclosures. We believe our work with Ernst & Young will allow us to further strengthen our business practices and quality of our financial reporting."
About Wuhan General
Wuhan General designs, manufactures, and distributes industrial blowers and turbines. Blowers are used in a variety of applications where large amounts of air have to be moved. Examples include electricity generation, air pollution control, and ventilation and aeration in subways and vehicular tunnels, mines, and sewage treatment facilities. The Company’s steam and water turbines are used for electricity generation in coal, oil, nuclear, and hydroelectric power plants. The Company is located in Wuhan, China, a major industrial city of 8 million people strategically located in the south-central part of China.
Safe Harbor Statement
Certain statements in this press release, including statements regarding future demand for our products, future raw material costs and our future financial performance may be forward-looking in nature or "forward-looking statements," as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to vulnerability of our business to general economic downturn, operating in the People’s Republic of China (PRC) generally and the potential for changes in the laws of the PRC that affect our operations, our failure to meet or timely meet contractual performance standards and schedules and other factors that may cause actual results to be materially different from those described in such forward-looking statements. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on Wuhan General’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting Wuhan General will be those anticipated by the Company. Wuhan General undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For more information, please contact:
Haiming Liu
CFO
Wuhan General Group
Tel: +86-27-5970-0067
Dan Joseph
ICR, Inc.
Tel: +86-21-6122-1077
