SORL Auto Parts Granted Preferential Income Tax Treatment Through 2011

ZHEJIANG, China, Dec. 31 /PRNewswire-Asia-FirstCall/ — SORL Auto Parts,
Inc. (Nasdaq: SORL), a leading manufacturer and distributor of commercial
vehicle air brake valves and other auto parts in China, today announced that
China’s State Administration of Taxation has officially confirmed that the
Company’s subsidiary, Ruili Group Ruian Auto Parts Co., Ltd. (“Ruian Auto
Parts”), is entitled to preferential tax treatment, which resulted in a tax
refund that SORL included in its income statement for the second quarter of
2008. As a result, for the years 2007 and 2008, Ruian Auto Parts is entitled
to an income tax exemption on all pre-tax income generated by the company
above its pre-tax income generated in the fiscal year 2006. Additionally, the
Company will enjoy a 50% exemption from the applicable income tax rate of 25%
on any pre-tax income above its 2006 pre-tax income, to be recognized in the
years 2009, 2010 and 2011.

The Company increased its investment in Ruian Auto Parts as a result of
its financing in December, 2006. In accordance with the Income Tax Law of the
People’s Republic of China on Foreign-invested Enterprises and Foreign
Enterprises, Ruian Auto Parts is eligible for additional preferential tax
treatment and the application for such treatment was submitted in 2007.

Xiaoping Zhang, SORL Auto Parts’ CEO and Chairman, said, “We are very glad
to be granted the preferential tax treatment, which benefits our bottom line
through 2011. We will continue to strengthen our corporate tax planning
efforts and keep abreast of any future developments of the relevant tax law to
realize any potential of enhancing our profitability and bringing our
shareholders additional returns.”

About SORL Auto Parts, Inc.

As China’s leading manufacturer and distributor of automotive air brake
valves, SORL Auto Parts, Inc. ranks first in market share in the segment for
commercial vehicles weighing more than three tons, such as trucks and buses.
The Company distributes products both within China and internationally under
the SORL trademark. SORL ranks among the top 100 auto component suppliers in
China, with a product range that includes 40 types of air brake valves and
over 1000 different specifications. The Company has four authorized
international sales centers in Australia, United Arab Emirates, India, and the
United States, with additional offices slated to open in other locations in
the near future. For more information, please visit http://www.sorl.cn .

    For more information, please contact:

    At SORL Auto Parts, Inc.
     Ben Chen
     Director of Investor Relations
     Tel:   +86-577-6581-7721
     Email: ben@sorl.com.cn

    At ICR, Inc.:
     In China:
     Wei-Jung Yang
     Tel:   +86-10-8523-3088
     Email: weijung.yang@icrinc.com

     In U.S.
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com

SOURCE SORL Auto Parts, Inc.