On December 20th, 2010, Wonder Auto Technology, Inc. (Nasdaq: WATG) ("Wonder Auto" or the "Company"), a leading manufacturer of automotive electrical parts, automotive safety products, suspension products and engine accessories in China, announced that it has launched a project to list (the "Listing") its subsidiary Jinzhou Halla Electrical Equipment Co., Ltd. ("Jinzhou Halla") on China's Shenzhen Stock Exchange ("SZSE"). As part of the Listing, the Company anticipates that Jinzhou Halla will conduct an initial public offering of its new shares on SZSE, and WATG's shareholders will still hold more than 73% of shares of Jinzhou Halla after the IPO. The purpose of the Listing is to maximize the Company's capital value by taking advantage of attractive valuations on the SZSE and to raise additional capital that can be used to grow the business.

In advance of the Listing, WATG intends to reorganize several of its subsidiaries to consolidate in Jinzhou Hall its automotive engine parts business, including its starter and alternator business and engine valve and tappets business. These businesses are expected to account for 50% to 60% of the Company's projected net income in 2010.

"Since listing on Nasdaq, Wonder Auto has experienced rapid growth with the support from its investors. The Company and management team appreciate the investors' great support and acceptance. We believe that China's economy and automotive industry will continue to experience growth in the next few years, which provides WATG, as a leading supplier of China automotive parts, with great opportunities. We believe that we will be able to achieve better business performance if the Company gets additional capital support. According to our investigation, the SZSE has been providing attractive valuations to companies. For instance, the current PE ratio range of past IPOs in SZSE in 2010 was between approx 40-140 times. Accordingly, we believe that listing a portion of Jinzhou Halla will provide the Company the capital that it needs to leverage its opportunities for growth and also increase value for WATG's existing shareholders," said Mr. Qingjie Zhao, the Chairman and CEO of Wonder Auto, in discussing the proposed listing of Jinzhou Halla on the SZSE.

The Company cautions investors that listing on the SZSE is a complex process that involves a number of risks and uncertainties, including without limitation, approval of China's Securities Regulatory Commission, and there is no assurance that the listing of Jinzhou Halla on the SZSE will be completed.

The Company will hold a conference call at 8 am Eastern Time on Jan 3rd 2011 to discuss the proposed listing of Jinzhou Halla on the SZSE, including the expected schedule, returns, risks and related matters. To participate, please call the following numbers 10 minutes before the call start time:

Local Dial-In Number(s)

China, Domestic

8008700816

China, Domestic

4006988166

Hong Kong

85227598661

International Toll Free Dial-in Number(s):

United States

18662421388

China, China Telecom

108002640084

China, NetCom Users

108006400084

Hong Kong

800968831

United Kingdom

08082347860

Conference ID: 33496485

All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us: autonews@gasgoo.com.