China BAK Announces High Power Battery Supply Contract for Electric Bus

China BAK Battery, Inc. ("China BAK", the "Company" or "we") (Nasdaq: CBAK), one of the largest lithium-ion battery cell manufacturers in the world, as measured by production output, today announced its Tianjin Facility has begun to execute a contract with Jilin Hi-tech Electric Vehicle Co., Ltd, an affiliated company of First Automobile Group Co., Ltd, one of the largest automobile manufacturers in China, for providing high-power batteries used in its Electric Bus Project.

The contract, amounting to approximately one million dollars, aims to provide battery packs and battery management systems for 20 electric buses.

"We are glad to see our Tianjin facility begin to execute its contract with Jilin Hi-tech Electric Vehicle Co., Ltd. This is our first order for batteries for electric buses. It represents customers’ confidence in our products, and is a new and significant stage in China BAK’s product development," commented Mr. Xiangqian Li, CEO of China BAK, "With significant government subsidies, we believe electric buses have the biggest potential in the foreseeable electric vehicles industry in China, and we are well prepared to grasp that opportunity."

China BAK Battery, Inc. is one of the largest manufacturers of lithium-based battery cells in the world, as measured by production output. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices, and PDAs.

China BAK Battery, Inc.’s 3.0-million-square-foot facilities are located in Shenzhen and Tianjin, PRC, and have been recently expanded to produce new products.