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Vice-premier of China’s State Council, Li Keqiang Visited SORL Auto Parts

2008-07-11 23:45 1571

Encourages companies to adjust to the changing economic environment and look for growth opportunities

ZHEJIANG, China, July 11 /Xinhua-PRNewswire/ -- SORL Auto Parts, Inc. (Nasdaq: SORL), a leading manufacturer and distributor of commercial vehicle air brake valves and other auto parts in China, announced that Mr. Li Keqiang, Vice-premier of China’s State Council, visited SORL Auto Parts on July 7, 2008 in order to gain a better understanding as to how SORL is addressing the challenges of the current economic environment. Mr. Li was accompanied by Mr. Zhao Hongzhu, Secretary of the CPC’s Zhejiang Provincial Committee, Mr. Lu Zushan, Governor of Zhejiang Province, and other provincial and city government officials. The officials held discussions with SORL senior management in order to exchange ideas as to how Chinese companies can adapt to the current economic conditions.

Zhang Xiaoping, CEO of SORL Auto Parts, commented, “We are honored to have these distinguished government leaders visit SORL and express their concern and support for our Company. Since the latter half of last year, our economy has seen quite a few changes, including the appreciation the Chinese currency, rising raw material and labor costs, and adjustments in China’s tax refund policy for exports. These changes have created considerable pressure on Chinese companies as they seek to grow. At SORL our goal has been to react to these changes in a way that allows us to continue to grow regardless of the economic or regulatory environment. We have continued to expand our business both domestically and overseas. We have utilized process improvements and technical enhancements to increase our overall labor and manufacturing productivity. As a result, in the fourth quarter of 2007 and the first quarter of 2008, our gross margin and net margin both improved. We expect this positive trend to continue in the second quarter of 2008.”

Zhang Xiaoping, CEO of SORL Auto Parts, continued, “With respect to our long term goals, we will continue to increase our investment in the development of new products. We are also exploring potential partnership opportunities that will enable us to leverage our low cost sourcing and manufacturing ability, further expand our overseas sales network, improve our technical capability, and eventually enhance SORL’s overall competitiveness in the global international markets.”

Vice-premier Li Keqiang noted that he was impressed with SORL’s sample display room, new product testing laboratory, and highly computerized manufacturing plant. Vice-premier Li further commented, “The fundamentals of the economy remain strong and growth is on track. China has abundant natural resources, a substantial domestic market, and a strong competitive advantage in the global economy. We are confident that China will be able to continue to grow rapidly in the years to come.”

About SORL Auto Parts, Inc.

As China’s leading manufacturer and distributor of automotive air brake valves, SORL Auto Parts, Inc. ranks first in market share in the segment for commercial vehicles weighing more than three tons, such as trucks and buses. The Company distributes products both within China and internationally under the SORL trademark. SORL ranks among the top 100 auto component suppliers in China, with a product range that includes 40 types of air brake valves and over 1000 different specifications. The Company has four authorized international sales centers in Australia, United Arab Emirates, India, and the United States, with additional offices slated to open in other locations in the near future. For more information, please visit http://www.sorl.cn .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will", "believes", "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC’s electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .

Source: SORL Auto Parts, Inc.
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