China Yuchai International Begins Construction on New Research & Development Institute

October 28, 2009

SINGAPORE, Oct. 28 /PRNewswire-Asia-FirstCall/ — China Yuchai
International Limited (NYSE: CYD) (“China Yuchai” or the “Company”), announced
today that its main operating subsidiary, Guangxi Yuchai Machinery Company
Limited (“GYMCL”) recently held a ground-breaking ceremony attended by
government officials and GYMCL executives, to celebrate the commencement of
construction of a new Research & Development Institute (“R&D Institute”) in
the High Tech Development Zone of Nanning, the capital of Guangxi Province in

The new R&D Institute which is designed to meet the National-Level
Enterprise Technology Center Standards is located next to the Guangxi
University and is the first research institute in China focused on diesel
engine technology. Nanning was selected due to its strategic location
especially as a transportation center in Guangxi Province. The R&D Institute
will become an enterprise-wide resource reflecting the expertise of GYMCL’s R
& D teams which have already achieved a number of innovations and first-to-
market products in engine technology and design. Upon its completion, the R&D
Institute will considerably improve GYMCL’s capacity for innovation and raise
its overall standards of technology to develop new diesel engines designed to
better compete in the global market, while enabling China to become a nation
with advanced engine manufacturing and production. The R&D Institute is
expected to attract international experts to strengthen technology transfers
and become a showcase to draw other technology enterprises to Nanning so as to
accelerate its economic growth.

The total capital investment in the R&D Institute is approximately RBM 310
million with completion of the construction slated for November 2010 with full
use of all facilities by August 2011. The R&D Institute will, upon completion
occupy a total floor area of approximately 20,000 square meters (about 5 acres)
and consist of an R&D facility, a showroom for new products, production
facilities for prototypes of new and experimental products, a multi-purpose
meeting hall, outdoor experimental and support facilities.

Mr. Boo Guan Saw, President of the Company, commented, “This facility will
advance GYMCL’s engines in the global market with innovative designs meeting
the highest global quality standards. We believe that through this new R&D
Institute, GYMCL will become even more competitive shaping it for future
growth. Our goal is nothing less than to be the best in China and among the
top five automotive engineering R&D institutes in the world.”

About China Yuchai International

China Yuchai International Limited, through its subsidiary, Guangxi Yuchai
Machinery Company Limited (“GYMCL”), engages in the manufacture, assembly, and
sale of a wide array of light-duty, medium-sized and heavy-duty diesel engines
for construction equipment, trucks, buses, and cars in China. GYMCL also
produces diesel power generators, which are primarily used in the construction
and mining industries. Through its regional sales offices and authorized
customer service centers, the Company distributes its diesel engines directly
to auto OEMs and retailers and provides maintenance and retrofitting services
throughout China. Founded in 1951, GYMCL has established a reputable brand
name, strong research & development team and significant market share in China
with high-quality products and reliable after-sales support. In 2008, GYMCL
sold approximately 372,000 diesel engines and was consistently ranked No. 1 in
unit sales by China Association of Automobile Manufacturers. For more
information, please visit http://www.cyilimited.com .

    For more information, please contact:

     Kevin Theiss / Dixon Chen
     Tel:   +1-646-284-9409
     Email: kevin.theiss@us.grayling.com

SOURCE China Yuchai International Limited

Source: newswire

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