On 26 Jun 2008, Harbin Dongan Automobile Engine Manufacturing Co., Ltd. (DAE), 36% of whose shares are held by the company, signed a contract related to a two-phase AT (automatic transmission) project with total investment of RMB 2 bln (DAE's own funds and loans from banks), with Mitsubishi Motors Co., Ltd.

According to the contract, DAE will build up a production line of automatic transmissions by introducing technology from Mitsubishi Motors. Within the period of validity from 2008 to 2015, automatic transmissions that DAE produces will be supplied to other motor manufacturers in China and partners of Mitsubishi Motors.

The above-mentioned issue was examined and approved at a meeting of the board of directors of DAE.

Board of Directors
4 Jul 2008


Source: Shanghai Stock Exchange

Date: 7 Jul 2008

CN01/ZZ/LZ/AR/KM