Wonder Auto Technology Establishes Secured Credit Line

Wonder Auto Technology Establishes Secured Credit Line

October 05, 2007

- Letter of Intent Signed For Additional Credit Line -
- Up to $24 million in Production Expansion Capital
Obtained -


    JINZHOU CITY, Liaoning Province, China, Oct. 5
/Xinhua-PRNewswire-FirstCall/ -- Wonder Auto Technology,
Inc. (NasdaqGM: WATG) ("Wonder Auto" or the
"Company"), a leading manufacturer of automotive
electrical and suspension parts in China, today announced
that its wholly owned subsidiary, Jinzhou Halla Electrical
Equipment Co., Ltd. ("Jinzhou Halla"), has been
extended a credit line by the Bank of China, Jinzhou Tiebei
branch, for a credit facility of approximately $10.67
million (80 million yuan). Additionally, Jinzhou Halla has
entered into a Letter of Intent for another line of credit
approximating $13.3 million (100 million yuan) with the
China Construction Bank. The total loan proceeds which can
be drawn under these two Chinese bank credit facilities is
approximately $24 million (180 million yuan).

    The proceeds from these lines of credit are expected to
be used to expand the production capabilities and
facilities, and for other working capital needs. Both
credit lines are secured by certain assets of Jinzhou
Halla. The Bank of China credit line is available through
September 24, 2008 and Jinzhou Halla has drawn
approximately $4 million (30 million yuan) to date. The
China Construction Bank Letter of Intent will become
effective upon the signing of the loan agreements.

    The credit lines are being offered after completion of
the banks' due diligence process of Jinzhou Halla and its
growth potential. Jinzhou Halla is a leading producer of
starters and alternators for the Chinese automotive market.
For the six months ended June 30, 2007, sales of starters
and alternators grew by 29.4% to $43.5 million compared
with $33.6 million in the same period last year.

    About Wonder Auto Technology 

    Based in Jinzhou City, Liaoning, China, Wonder Auto
Technology, Inc., through its Chinese subsidiaries,
designs, develops, manufactures and sells automotive
electrical parts and suspension products. Wonder Auto was
ranked second in sales revenue in the China market for
automotive alternators and starters in 2006. With
respective 5 different series and over 150 models of
alternators, 70 models of starters and various suspension
related parts, the Company supplies to a wide range of
automakers, engine producers and auto parts suppliers both
in domestic China and overseas. Wonder Auto's main
customers include Beijing Hyundai Motor Company, Shenyang
Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd.,
Harbin Dongan Automotive Engine Manufacturing Co., Ltd., and
Tianjin FAW Xiali Automotive Co., Ltd. For more information,
please log onto www.watg.cn 

    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 expected use of the proceeds from the
lines of credit 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 more information, please contact:

     Yuechun Xie, Investor Relations Manager, 
     Wonder Auto Technology, Inc.
     Tel:   [phone]
     Email: [e-mail]

    Investor Relations, 
     Kevin Theiss
     Tel:   [phone]
     Email: [e-mail]

    Media Relations, Stacy Dimakakos,
     Tel:   [phone]
     Email: [e-mail]