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Jinhao Motor Company Closes $30 Million Financing

On August 20, 2010, Jinhao Motor Company closed the securities purchase agreements with accredited institution investors, pursuant to which the Company issued to the Investors 6,857,204 Units at a purchase price of $4.37496 per Unit, the "Series A Financing" . Each Unit consists of one share of the Company's newly-designated Series A Redeemable Convertible Preferred Stock and one Warrant to purchase 0.5 share of the Company's Common Stock. The Series A Preferred Stock will be convertible into one share of the Company's Common Stock. The Warrants will be immediately exercisable at a per share price of $6.56244 and will have a term of three years. The Company is obligated to register the underlying shares of Common Stock within a pre-defined period.

The Company intends to use the proceeds from the Series A Financing to further increase its production capacity and fund expansion plans.

Hudson Securities, Inc. acted as the Company's Placement Agent in connection with the Series A Financing.

WorldWide Capital, Inc. acted as the Company's Exclusive Financial Advisor.

Jinhao Motor is primarily engaged in the production and distribution of motorcycles and small engines. The overseas market accounts for approximately 78.63% of our sales with the domestic market making up the remaining.

In 2006, the Company began a research and development of electric vehicles. In 2009, the Company established an electric vehicle manufacturing plant with 215,278.2 square feet and has developed and manufactured prototypes of two models of electric vehicles, a compact two-door and a mid-size four-door, both of which are used in city and highway environments. Since October 2009, the Company has delivered over 1,500 units of electric cars to its customers both domestically and internationally.

The Company has invested over $45 million into R&D for electric vehicles, and has entered into exclusive patent license agreements for 2 patents to be used in the production of electric vehicles. The Company has also signed sales agency agreements with six major distributors across China, and overseas and has signed sales contracts with distributors from Spain, Finland, Italy, Chile and Thailand. The Company is also focused on developing distribution channels into the EU and the United States. Jinhao's electric vehicles are priced much lower than similar models produced by other car manufacturers in the international market. Jinhao's primary strength lies in its existing strong global sales distribution network from its motorcycle business. The Company plans to leverage that strength and expand its business with electric vehicles.

Jinhao Motor's CEO and Chairman, Mr. Tsoi said, "We are very pleased to announce the closing of our Series A Financing. We are especially proud that recognized banks made such a substantial commitment and support to our Company. We are extremely excited about the prospects of the electric vehicle industry and this financing will further support our plans as we strive to become a leader in the electric vehicle and alternative energy industry. We would also like to thank Hudson Securities and Worldwide Capital for their advice and support."

"We appreciate the strong support from institutional investors and we believe that our client- Jinhao can take the company to the next horizon by diligently executing the business model with the current round of financing" , commented, Mr. Baldwin Yung- Managing Partner of Worldwide Capital.

About Hudson Securities

Hudson Securities, Inc. is a leading independent trading firm dedicated to meeting liquidity needs of clients: institutions, hedge funds, asset managers, and broker dealers, by providing execution solutions and making markets in over 15,000 U.S. and foreign securities and ADRs. As a registered broker-dealer under the Securities Exchange Act of 1934, Hudson Securities, Inc. is a member of the Financial Industry Regulatory Authority ("FINRA") and has been in business since 1984. Hudson Securities is a subsidiary, along with Hudson Technologies, Inc., of Hudson Holding Corporation, a publicly traded company on the OTC Bulletin Board under the symbol "HDHL". For additional information about Hudson Securities, please visit www.hudsonsecurities.com.

About Worldwide Capital

Worldwide Capital Asia Corporation is a financial advisory, merchant banking and asset management firm which specializes in assisting emerging companies in the Asia Pacific region. Worldwide Capital also offer extensive consulting services, focusing on venture capital and mergers and acquisitions, SME financing, and various stages of financing. Through the experience, expertise and scope of financing operations from our senior officers, Worldwide Capital assists our clients to seize opportunities around the globe and its markets. For additional information about Worldwide Capital, please visit www.wwcap.com.

About Jinhao Motor Company

Jinhao Motors is primarily engaged in the production and distribution of motorcycles and small engines for overseas and the domestic markets. In 2006, we began a research and development of electric cars and in 2009 we established an electric car manufacturing plant. We have developed and manufactured prototypes of two models of electric cars, a compact two-door and a mid-size four-door, both of which are used in city and highway environments. Since October 2009, we have delivered over 1,500 units of electric cars to our customers both domestically and internationally. We invested over $45 million into R&D for electric car, and have entered into exclusive patent license agreements for 3 patents to be used in the production of electric cars. We have signed sales agency agreements with six distributors across China and overseas we have signed sales contracts with distributors from Spain, Finland, Italy, Chile and Thailand. We are also focused on developing distribution channels into the EU and the United States. Our electric cars are expected to be priced much lower than similar models produced by other car manufacturers in the international market. Our primary strength lies in our existing strong global sales distribution network from our motorcycle business. As of December 31, 2009, we employed a total of 440 employees. For the three months ended March 31, 2010, revenue was $50,405,000 and net income as $6,438,000 or $0.13 per share. As at March 31, 2010 shareholders' equity was $121,607,604 and total assets were $144,681,317. For additional information, please visit www.jin-hao.com.

Safe Harbor Statement - This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the company's ability to raise additional capital to finance the company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the company; the ability of the company to operate as a public company; the period of time for which its current liquidity will enable the company to fund its operations; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Jinhao Motor Company
Mr. Chak Shing Tsoi, (86) 75-8362-5628
Chief Executive Officer and Chairman
or
Dr. John Shen, (86) 75-8362-5628
President
or
Mr. Hai Ming Liu, (86) 75-8362-5628
Chief Financial Officer
jinhao@jin-hao.com
or
Worldwide Capital
Mr. Baldwin Yung, (852)3583-3148
baldwin@wwcap.com