HUBEI, China, Aug. 3, 2004 (PRIMEZONE) -- China Automotive Systems, Inc. (OTCBB:CAAS) today announced it has signed a letter of intent with Advanced Custom Sensors, Inc. (ACSI) to establish a joint venture to produce automobile sensors for a variety of electronic control system applications. The joint venture, which is subject to the signing of a definitive agreement and other customary conditions, is expected to be established by October 31, 2004. Terms were not disclosed.
"Sensors are an integral component of electronic control systems for vehicles. The quantity and quality of the sensors can range from just a few to over two hundred for luxury car models. While there is a world-wide market for these sensors, the joint venture will initially focus on Chinese automotive manufacturers who currently need to import the majority of the high performance sensors due to lagging technology in this area within China," said Hanlin Chen, chairman and chief executive officer of China Automotive Systems.
This joint venture, which is expected to commence production by July 2005, will be based in Hubei Province of the People's Republic of China and include research and development, administrative and manufacturing facilities. "This joint venture is planned to have an initial annual output of 4.5 million sensors with estimated net sales of approximately $40 million," said Chen.
ABOUT ADVANCED CUSTOM SENSORS, INC.
Based in Irvine, California, ACSI develops, designs and markets Micro-Electro-Mechanical Systems (MEMS) and sputtered thin-film sensors and transducers to the medical, chemical, oil, and gas industries. ACSI also offers a line of specialty products intended to allow process-oriented industries to bring new levels of intelligent control and monitoring to their operations. These products include wireless data acquisition and sensor interface devices, intelligent data collection and distribution products, and wireless data network portals.
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 five 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, financial performance and condition, the signing of a definitive joint venture agreement with ACSI and meeting its production and sales expectations for the joint venture. 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.