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China Automotive Systems Establishes Joint Venture With Sensor System Solutions, Inc.

HUBEI, China, April 14, 2005 (PRIMEZONE) -- China Automotive Systems, Inc. today announced it has signed a joint venture agreement with Sensor System Solutions, Inc. to produce sensors for the automotive market. Terms were not disclosed.

The joint venture, which will operate under the name Universal Sensor Application, Inc., will commence production by August 2005. It will be based in Hubei Province of the People's Republic of China.

As previously announced, China Automotive Systems and Sensor System Solutions, formerly Advanced Custom Sensors, signed a letter of intent to establish the joint venture last year.

"We anticipate the joint venture will have an initial annual output of 4.5 million sensors, with estimated net sales of approximately $40 million. Sensors are becoming increasingly important components of electronic control systems of vehicles. In addition, with China expected to become the second largest automotive market in the world by 2010, demand for this technology should be significant," said Hanlin Chen, chief executive officer of China Automotive Systems.

He noted that the joint venture will initially focus on providing sensors to automotive manufacturers in China.

ABOUT SENSOR SYSTEM SOLUTIONS

Based in Irvine, California, 3S develops and markets Micro-Electro-Mechanical Systems (MEMS) and thin-film sensors to the medical, chemical, oil and gas industries. 3S also offers a line of specialty products 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, and intelligent data collection and distribution products.

ABOUT CHINA AUTOMOTIVE SYSTEMS

Based in Hubei Province, the 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, 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, demand for sensors produced by the joint venture, 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.

CONTACTS:  Maier & Company, Inc.
           Gary S. Maier/ Sophie Xu
           (310) 442-9852