2006 Peugeot Dongfeng 206 1.6 5-door Chinese Version review

Peugeot Dongfeng 206 1.6 5-door Chinese Version review:

China Automotive Systems, Inc. (Nasdaq:CAAS) today announced it has received a development contract for a power steering system from Dongfeng Peugeot Citroen Automobiles Ltd. for its next-generation Peugeot 206 flagship vehicle.
It expects to complete the development stage for the Peugeot 206 by the first
quarter of 2006 and has formed a special unit to manage the project.

The company also said that it has been selected as a supplier of steering systems for various other Peugeot Citroen models, including Citroen ZX and Elysee. China Automotive anticipates combined annual rack and pinion steering systems for Dongfeng Peugeot will reach 100,000 units, with sales of approximately $7.8 million.

"The selection of China Automotive Systems as an exclusive supplier for the Peugeot 206 model was the result of a rigorous evaluation and competitive bidding process. It underscores our organization`s commitment to quality and effective pricing, two major considerations for the automotive industry. We look
forward to further establishing the company`s position as an important supplier to automobile manufacturers in China, as well as in other global markets," said Hanlin Chen, chairman and chief executive officer of China Automotive Systems.

Dongfeng Peugeot Citroen Automobiles Ltd. is a joint venture of Dongfeng Motor Corporation, one of the top three automobile manufacturers in China, and PSA Peugeot Citroen of France. Established in May 1992, the joint venture is headquartered in Wuhan, China within Hubei Province. Its annual production
capacity is expected to reach approximately 300,000 sedans by 2006.

ABOUT THE COMPANY

Based in Hubei Province, People`s Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through four Sino-foreign joint ventures.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company`s operations and financial
performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important
factors, including, among others, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company`s
reports filed with the Securities and Exchange Commission from time to time. End of Peugeot Dongfeng 206 1.6 5-door Chinese Version review.