Kandi’s Electric Car Receives Registration Tax Exemption

Kandi Technologies, Corp. (the "Company" or "Kandi") (NASDAQ: KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), today announced that Kandi’s pure electric cargo vehicle model KD5011XXYEV is among the first on the list of Energy-Saving and New Energy Vehicles for Registration Tax Reduction and Exemption, approved by the State Council (the Cabinet of China); the list was jointly issued and released by Ministry of Finance, Ministry of State Administration of Taxation and Ministry of Industry and Information Technology of China on March 6, 2012. The KD5011XXYEV model is exempted from the annual registration tax for the vehicle owner starting from January 1st, 2012.

Additionally, Kandi’s pure electric cargo vehicle model KD5021XXYBEV is included in the "Energy-Saving and New Energy Vehicle Demonstration and Promotion for Use Project" list which was issued by the Ministry of Industry and Information Technology of China on February 29th, 2012.

Mr. Xiaoming Hu, Chairman and Chief Executive Officer of Kandi Technologies, commented, "It is very exciting for us to announce that our KD5011XXYEV is one of the new energy vehicles to receive the annual registration tax exemption and this offers more incentives for our consumers to purchase Kandi pure electric cars. We are also very proud that our pure electric vehicle KD5021XXYBEV is recommended under the energy-saving and new energy vehicle demonstration and promotion for use project by the Chinese government. This preferential tax treatment and the recommendation under the project is a further recognition for Kandi, and will provide more public confidence in our product offerings, will increase our competitive advantages, and will further promote the development of our electric vehicles."

Kandi Technologies, Corp. (NASDAQ: KNDI) is a manufacturer and exporter of a variety of vehicles in China, making it a world leader in the production of popular off-road vehicles (ORVs). It also ranks among the leading manufacturers in China of all-terrain vehicles (ATVs), specialized utility vehicles (UTVs), and a recently introduced second-generation high mileage, two-seat three-wheeled motorcycle. Another major company focus has been on the manufacture and sale of the COCO electric car (EV), a highly economical, beautifully designed, all-electric super mini-car for neighborhood driving and commuting. The convertible and hardtop models of the COCO EV are available in the United States and other countries, while the Chinese government has approved the sale of Kandi electric vehicles in China since 2010.