Wuhan General's Subsidiary Wins Bid for Wuhan Subway Systems

WUHAN, China, Jan. 20, 2011 /PRNewswire-Asia-FirstCall/ -- Wuhan General Group (China), Inc. (Nasdaq: WUHN) ("Wuhan General" or the "Company"), a leading manufacturer of industrial blowers and turbines in China, operating through its subsidiaries, Wuhan Blower Co., Ltd. ("Wuhan Blower"), Wuhan Generating Equipment Co., Ltd. ("Wuhan Generating") and Wuhan Sungreen Environment Protection Equipment Co., Ltd. ("Wuhan Sungreen"), today announced that on January 4, 2011, Wuhan Blower won a bid from the Wuhan Metro Group Co., Ltd. ("Wuhan Metro") to supply blowers for the subway systems for a contract price of RMB 4.40 million ($0.67 million). The Company believes this initial order opens the door for additional opportunities from Wuhan Metro and is actively bidding for orders.

The blowers will be used in the Phase One of Wuhan Subway Line Two. The delivery deadline for the blowers is on December 31, 2011. The formal contract will be signed on February 4, 2011. Additional information about the results of the bidding process can be found on Wuhan Metro's website: http://www.whrt.gov.cn.

"After passing the type inspection for subway systems in 2010, we finally won our first contract for subway systems," said Mr. Ruilong Qi, Chief Executive Officer of Wuhan General, "Following this milestone, we believe we have more opportunities to approach larger projects related to the construction of subway systems in Wuhan and in other emerging cities across China."

About Wuhan General Group (China), Inc.

Through its subsidiaries, Wuhan Blower, Wuhan Generating and Wuhan Sungreen, Wuhan General is a leading manufacturer of industrial blowers and turbines in China and the Company is based in Wuhan, Hubei Province, China. Wuhan Blower is a China-based manufacturer of industrial blowers that are principal components of steam-driven electrical power generation plants. Wuhan Generating is a China-based manufacturer of industrial steam and water turbines used for electricity generation in coal, oil, nuclear and hydroelectric power plants. Wuhan Sungreen manufactures silencers, connectors and other general parts for industrial blowers and electrical equipment and produces general machinery equipment. The Company's primary customers are from the iron and steel, power generation, petrochemical and other industries. Led by a strong management team, Wuhan General is well recognized for its technological sophistication and quality construction of blowers and turbines. For more information, please visit http://www.wuhangeneral.com.

Safe Harbor Statement

Certain statements in this press release, including statements regarding our first quarter 2010 financial results, future revenue (including by segment), net income and sales, our liquidity position, growth strategy, future demand for our products, the fulfillment of our backlog orders, improvement in the collection of our accounts receivable, our ability to control costs and our ability to handle larger projects 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, our ability to comply with financial covenants in our loan agreement with Standard Chartered 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.