SHENZHEN, China, Dec. 21 /Xinhua-PRNewswire/ -- China BAK Battery, Inc.
("China BAK" or "BAK") (Nasdaq: CBAK), today announced that it has entered
into a new RMB 200 million (approximately U.S. $26 million based on December
18, 2006, exchange rates), five-year term loan with Shenzhen Eastern Branch,
Agricultural Bank of China effective December 18, 2006. The loan carries a
floating interest rate of 90% of The People's Bank of China benchmark rate,
and provides for borrowing capacity in addition to the existing credit
facility with the Agricultural Bank of China. The loan is secured by pledged
machinery and equipment valued at approximately RMB 115.4 million
(approximately U.S. $15 million based on December 18, 2006, exchange rates).
China BAK intends to use the loan for the purchase of machinery and equipment
and for further business development activities.
"Our new long term loan agreement provides us with greater flexibility in
managing our capital expenditures and working capital requirements. We believe
that our existing available short-term and long-term bank credit facilities
are sufficient to support our current business development and future business
expansion," commented Xiangqian Li, China BAK's Chief Executive Officer.
About China BAK Battery Inc.
China BAK Battery, Inc. is one of the largest manufacturers of lithium-
based battery cells in China and in the world, as measured by production
output. It produces battery cells that are the principal component of
rechargeable batteries commonly used in cellular phones, notebook computers,
cordless power tools and portable consumer electronics, such as digital media
devices, portable media players, portable audio players, portable gaming
devices and personal digital assistants (or PDAs). China BAK's 1.9 million
square feet facilities are located in Shenzhen, PRC, and have been recently
expanded to produce new products. China BAK is the largest manufacturer of
lithium-ion battery cells for China's cellular phone replacement battery
market.
Safe Harbor Statement
This press release contains forward-looking statements, which are subject
to change. The forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. All
"forward-looking statements" relating to the business of China BAK Battery,
Inc. and its subsidiary companies, which can be identified by the use of
forward-looking terminology such as "believes," "expects" or similar
expressions, involve known and unknown risks and uncertainties which could
cause actual results to differ. These factors include but are not limited to:
risks related to China BAK's business and risks related to operating in China.
Please refer to China BAK's Annual Report on Form 10-K for the fiscal year
ended September 30, 2006, filed with the U.S. Securities and Exchange
Commission, for specific details on risk factors. Given these risks and
uncertainties, you are cautioned not to place undue reliance on forward-
looking statements. China BAK's actual results could differ materially from
those contained in the forward-looking statements. China BAK undertakes no
obligation to revise or update its forward-looking statements in order to
reflect events or circumstances that may arise after the date of this release.