Beijing Foton Commins Engine Co., Ltd., a subsidiary of the company, signed a syndicated loan agreement of RMB 1.2 bln on 16 July 2008 with China Construction Bank Corp. (CCB) and China Minsheng Banking Corp.

As CCB and China Minsheng Bank are cutting credits for other enterprises, this syndicated long-term loan is provided out of schedule. The syndicated loan agreement ensured the financing of the largest light-duty diesel engine manufacturer in China, which will help promote its future development.

Beijing Foton Commins is a 50-50 joint venture established by Beiqi Foton Motor Co., Ltd. and Commins Inc. with a total investment of RMB 2.7 bln with an annual production capacity of 400,000 motors. Its major products, Commins 2.8 liter and 3.8 liter in-line four-cylinder high-pressure direct injection light-duty diesel engines, are used in light trucks, pickups, SUVs, MPVs, small machines, non-road equipment and power systems. Both products are the latest inventions of Commins Inc. and will be put into production in 2009. The products have never been manufactured in any other parts of the world.

Source: China Securities Journal

Date: 17 Jul 2008

CN01/NW/RZ/BT/WH