SORL Auto Parts Provides Business Update

ZHEJIANG, China, Jan. 13 /PRNewswire-Asia-FirstCall/ -- SORL Auto Parts, Inc. (NASDAQ:SORL), a leading manufacturer and distributor of commercial vehicle air brake valves and other auto parts in China, today provided a business update and commented on the outlook for 2009.

Worldwide economic conditions have caused a slowdown in the automotive industry.  While the weakness in global automotive production has negatively impacted SORL's OEM business, the impact on its domestic and international aftermarket segments has remained limited due to the relatively stable demand for aftermarket products.

Historically, the fiscal third quarter has been SORL's strongest quarter. However, as discussed last year, SORL's sales grew at a slower pace in the third quarter of 2008 than in the two prior quarters, as a result of shifts in production schedules at its OEM customers.

Growth in SORL's domestic and international aftermarket segments remains healthy.  In the fourth quarter of 2008, the UAE remained the Company's top export market, followed by the U.S.  The Company expects that in 2009, the U.S. and the UAE will remain its top export markets for aftermarket products. Though the Company believes that uncertainty in the auto industry will continue into the second quarter of 2009, SORL also believes that it will be able to achieve stable overall growth in 2009.

The Company continues to focus closely on its cash management.  It adopted higher standards for accepting customers and has cut back on customers that pose greater credit risk, to help assure a healthy cash flow.  In addition, the Company believes it has sufficient liquidity including internally- generated cash flow and an untapped credit line of more than RMB150 million to maintain its growth.

Xiaoping Zhang, SORL Auto Parts' CEO and Chairman, said, "Despite tumultuous economic conditions, SORL remains strong financially and operationally.  Amid an overall slowdown of vehicle consumption, our stable and diversified customer base, of which one-third is in the domestic OEM market and the remaining in the domestic and international aftermarket segments, allows us to continue to increase sales in difficult market conditions."

Mr. Zhang continued, "In 2009, we will focus on managing risk and enhancing our profitability.  We believe that beginning in the second quarter of 2009, we will see a gradual recovery in the commercial vehicle market partly resulting from the Chinese government's RMB 4 trillion fiscal stimulus package to boost the economy and enhance domestic demand."

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 1000 different specifications. The Company has four authorized international sales centers in Australia, United Arab Emirates, India, 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/ .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward- looking statements can be identified by the use of forward-looking terminology such as "will", "believes", "expects" or similar expressions. These forward- looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov/ . 

DATASOURCE: SORL Auto Parts, Inc.



CONTACT: At SORL Auto Parts, Inc., Ben Chen, Director of Investor

Relations, [phone], or ; Or ICR, Inc. for SORL Auto

Parts, Inc., In China, Wei-Jung Yang, [phone], or

; Or In U.S., Brian M. Prenoveau, CFA, [phone],

or  



Web site: http://www.sorl.cn/ 

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