Second contract of its type provides insight into manufacturing trend in China

CHANGSHA, China, Oct. 8 /PRNewswire-Asia-FirstCall/-- Tongxin International, Ltd. (Nasdaq: TXIC - News), a China-based manufacturer of engineered vehicle body structures("EVBS"), today announced a new contract with a leading Chinese commercial vehicle manufacturer to manufacture and assemble Tongxin's cab model 1280 on-site and in the customer's production facilities in China.

Tongxin reported that it will design the dies and moulds and ship them to the customer where a team of Tongxin staff will work on the customer's production line to assemble its model 1280,a cab-over-engine, for heavy duty commercial trucks. Tongxin's manufacturing and assembly team will stamp the truck cab parts, assemble and weld the cab and deliver unpainted cabs to the manufacturers' paint line for painting and interior fittings prior to final assembly on a finished truck. The customer opted to have Tongxin assemble its cabs on-site instead of purchasing the complete cab bodies direct from Tongxin to reduce shipping expense and capitalize on Tongxin's expertise in building EVBS. Assembly began in October at the manufacturer's facility under a 3-year contract running through September, 2012. In addition to their in-house manufacturing of the model 1280 cab, Tongxin will continue to ship the customer several other models from its manufacturing plant in Changsha.

This is the second such type of contract involving manufacturing on the part of Tongxin at a customer's assembly plant. On August 4, 2009, the Company announced the first contract with another leading commercial vehicle manufacturer. Both customers are considered "top-ten" customers of the Company's more than 130-strong customer base in 21 sales regions throughout China.

"It is encouraging to see that this trend in localized manufacturing on our customer's line is beneficial for both parties," stated Duanxiang Zhang, Vice Chairman and CEO of Hunan Tongxin. "A contract of this type significantly develops our relationship with our customer base as it offers both a traditional option of shipments from our manufacturing sites to the customer, or, if they find it beneficial, our team assembling our designs on our customer's site. We are pleased to see our customer's turning to us for collaborative options."

About Tongxin International Ltd.

Tongxin International Ltd., the largest independent supplier of EVBS in China, is capable of providing EVBS for both the commercial truck and light vehicle market segments. The Company also designs, fabricates and tests dies used in the vehicle body structure manufacturing process. EVBS consists of exterior body panels including doors, floor pans, hoods, side panels and fenders. Tongxin maintains a network of 130 customers throughout 20 provinces in China. Headquartered in Changsha, Tongxin also maintains regional manufacturing in Dali, Ziyang and Zhucheng.

FORWARD LOOKING STATEMENTS

Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Tongxin International's most recent report to the SEC on Form 6-K, which may be revised or supplemented in subsequent reports to the SEC. Such factors include, among others, the cost and timing of implementing restructuring actions, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and certain global and regional economic conditions. Tongxin International does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

    For more information, please contact:

    COMPANY:

     Mr. Rudy Wilson, CEO
     Tel:  248-593-8330
     Email:  rudy@txicint.com
     Ms. Jackie Chang, CFO
     Tel:  626-660-7117
     China:  +86-13467553808
     Email:  jackie@txicint.com
     Web:  www.txicint.com


    INVESTOR RELATIONS:

     John Mattio, SVP
     HC International, Inc.
     Tel:   +1-914-669-5340 (U.S.)
     Email: john.mattio@hcinternational.net
     Web:   www.hcinternational.net

SOURCE Tongxin International Ltd.

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