SORL Purchases Land and Manufacturing Plant to Resolve Production Capacity Bottleneck

SORL Purchases Land and Manufacturing Plant to Resolve Production Capacity Bottleneck

October 02, 2007

    RUIAN CITY, Zhejiang Province, China, Oct. 1
/Xinhua-PRNewswire/ -- SORL Auto Parts, Inc. (Nasdaq: SORL)
("SORL" or the "Company"), a leading
manufacturer and distributor of automotive air brake valves
and related components in China, today announced that,
through its subsidiary, Ruili Group Ruian Auto Parts Co.
Ltd., it has purchased land rights, a manufacturing plant
and office building with a total floor area of 66,177.91
square meters, or 712,333 square feet, from Ruili Group Co.
Ltd. ("Ruili"), for 152 million yuan (US$20
million). The Company currently leases from Ruili and
occupies approximately 50 percent of this production
facility. Ruili will vacate the rest of the facility by the
end of October. The appraisal of the assets was conducted by
the leading independent appraiser, DTZ Debenham Tie Leung
Ltd., and total asset value was appraised at 154 million
yuan (US$20.3 million). As a result of this transaction,
the acquired capacity expansion is expected to meet the
Company's growth demands for the next 2 to 3 years.

    The purchase price will be paid by the Company by
transferring to Ruili its $9 million investment in an
existing project that includes a new-facility- in-progress
and prepayment of land use rights, with the balance of $11
million to be paid by the end of October 2007 from the
Company's existing bank credit line.

    "In order to solve the current production capacity
bottleneck and meet the fast growing demand for our products
in the domestic OEM, aftermarket and international markets,
we have decided to purchase Ruili Group's existing facility
and scale up our capacity quickly to capture the market
opportunity," said Xiaoping Zhang, CEO of SORL.
"Completing the new facility under construction would
have delayed our capacity expansion until late 2008 and
hindered our near-term growth. The Chinese commercial
vehicle market has experienced significant growth this year
and especially for heavy trucks. We are benefiting from the
growth of commercial activity in China as well as robust
government spending on infrastructure buildout and the
maturing of the domestic logistics industry. We see very
favorable market conditions for commercial vehicle auto
parts. The land use rights and facilities purchased will
add to our production starting in the late fourth quarter
of 2007, expanding our capacity for continued growth and to
enhance shareholder value."

    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 800 different specifications. The Company has three
authorized international sales centers in Australia, United
Arab Emirates, 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 .

    About DTZ

    DTZ is one of the 'big four' global real estate
advisers operating across Europe, Middle East and Africa
(EMEA), Asia Pacific and the Americas. With a team of over
11,000 property professionals within its system operating
across 140 cities in 45 countries, DTZ works with clients
to provide innovative real estate, capital markets and
business solutions worldwide. DTZ Holdings plc, which is
the largest shareholder in the DTZ operations, is a
publicly quoted company, listed on the London Stock
Exchange since 1987. For more information, please visit
http://www.dtz.com .

    Safe Harbor Statement

    This press release contains forward-looking statements
within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include, among others,
those concerning our estimated sales and expected expansion
of our production capacity as well as all assumptions,
expectations, predictions, intentions or beliefs about
future events. You are cautioned that any such
forward-looking statements are not guarantees of future
performance and that a number of risks and uncertainties
could cause actual results of the Company to differ
materially from those anticipated, expressed or implied in
the forward-looking statements. The words
"believe," "expect,"
"anticipate," "project,"
"targets," "optimistic,"
"intend," "aim," "will" or
similar expressions are intended to identify
forward-looking statements. All statements other than
statements of historical fact are statements that could be
deemed forward-looking statements. Risks and uncertainties
that could cause actual results to differ materially from
those anticipated include risks related to new and existing
products, product defects and any related product recall;
any projections of sales, earnings, revenue, margins or
other financial items; any statements of the plans,
strategies and objectives of management for future
operations; any statements regarding future economic
conditions or performance; uncertainties related to
conducting business in China; any statements of belief or
intention; any of the factors and risks mentioned in the
"Risk Factors" section of our Annual Report on
Form 10-K for the year ended December 31, 2006 and any
subsequent SEC filings. The Company assumes no obligation
and does not intend to update any forward-looking
statements, except as required by law.

    For further information, please contact:

     Richard (Weihai) Cai
     Investor Relations Manager
     Tel:   [phone]
     Email: [e-mail]

     Kevin Theiss
     Investor Relations
     The Global Consulting Group
     Tel:   [phone]
     Email: [e-mail]