China BAK Announces Plans for New Facility to Manufacture New Products

Jan 10, 2007, 00:00 ET from China BAK Battery, Inc.

    SHENZHEN, China, Jan. 10 /Xinhua-PRNewswire/ -- China BAK Battery, Inc.
 ("China BAK", or "BAK") (Nasdaq: CBAK), today announced plans to construct
 a new facility that will focus on product development and manufacture of an
 advanced lithium ion battery cell product line. The facility will be owned
 and operated by BAK's new indirect wholly-owned Chinese subsidiary.
     The new subsidiary, BAK International (Tianjin) Co., Ltd., will be
 located in Tianjin Beichen Hi-Tech Industrial Park. Tianjin is a coastal
 city in northeast China. This prestigious industrial park is a business
 development project of the State Council of The People's Republic of China
 whereby the Council provides government policy incentives to private
 industry. BAK believes that the location offers several advantages
 including ample human resources, excellent shipping and logistics,
 proximity to customers and vendors and available manufacturing support
 resources. The project also affords China BAK certain tax abatements.
     The new battery cells will provide higher energy density and power,
 longer life cycle and shorter charge times as compared to other types of
 lithium- based batteries. The initial customer development programs will
 focus on applications in Light Electric Vehicles, or LEVs, and
 Uninterruptible Power Supply. Among the most prevalent products in the LEV
 space is the electric bicycle. The planned products from this new facility
 also have potential application in hybrid electric vehicles.
     The timing of the construction of the new facility will be dependent on
 the progress of our customer development programs. Historically, China BAK
 has endeavored to add manufacturing infrastructure as sales opportunities
 become clearly defined. The earliest potential shipment from the newly
 planned facility is fiscal 2008, and will become more certain as business
 development activities, and construction of the Tianjin facility progress.
     China BAK has successfully commercialized new product lines due in
 large part, it believes, to its R&D capabilities and experienced sales
 organization focused on new business development. In fiscal 2006, China BAK
 introduced a new line cylindrical battery cells for use in laptop computers
 and scaled its lithium polymer sales for mobile electrical devices
 significantly. BAK believes it is now in an ideal position to expand its
 product lines into these other emerging applications in order to capitalize
 on additional market opportunities.
     "The formation of the BAK International (Tianjin) Co., Ltd. reflects
 the continuing evolution and development of China BAK's battery cell
 business, and we look forward to introducing many more high quality and
 innovative products in the future," commented Xiangqian Li, the President
 and Chief Executive Officer of China BAK. "Our new line of battery cells,
 which we expect to manufacture once our new Tianjin facility is completed,
 is a logical extension of our current product mix, it expands the market
 applications we serve and should strengthen our position as the worldwide
 market leader in lithium-based batteries cells."
     About China BAK Battery Inc.
     China BAK Battery, Inc. is one of the largest manufacturers of lithium-
 based battery cells in China and in the world, as measured by production
 output. It produces battery cells that are the principal component of
 rechargeable batteries commonly used in cellular phones, notebook
 computers, cordless power tools and portable consumer electronics, such as
 digital media devices, portable media players, portable audio players,
 portable gaming devices and personal digital assistants, or PDAs. China
 BAK's 1.9 million square feet facilities are located in Shenzhen, PRC, and
 have been recently expanded to produce new products. China BAK is the
 largest manufacturer of lithium-ion battery cells for China's cellular
 phone replacement battery market.
     Safe Harbor Statement
     This press release contains forward-looking statements, which are
 subject to change. The forward-looking statements are made pursuant to the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. All "forward-looking statements" relating to the business of China
 BAK Battery, Inc. and its subsidiary companies, which can be identified by
 the use of forward-looking terminology such as "believes," "expects" or
 similar expressions, involve known and unknown risks and uncertainties
 which could cause actual results to differ. These factors include but are
 not limited to: risks related to China BAK's business and risks related to
 operating in China. Please refer to China BAK's Annual Report on Form 10-K
 for the fiscal year ended September 30, 2006, filed with the U.S.
 Securities and Exchange Commission, for specific details on risk factors.
 Given these risks and uncertainties, you are cautioned not to place undue
 reliance on forward- looking statements. China BAK's actual results could
 differ materially from those contained in the forward-looking statements.
 China BAK undertakes no obligation to revise or update its forward-looking
 statements in order to reflect events or circumstances that may arise after
 the date of this release.
     For more information, please contact:
 
     Company Contact:
     Jim Groh
     Tel:  +1-843-277-0024
     Email:  jim@BAKbattery.com
 
     Or
 
     Investor Relations Contacts:
 
     Crocker Coulson
     Tel:  +1-646-213-1915
     Email: crocker.coulson@ccgir.com
 
     Elaine Ketchmere
     Tel:  +1-310-231-8600 ext. 119
     Email: elaine.Ketchmere@ccgir.com
 
 

SOURCE China BAK Battery, Inc.
    SHENZHEN, China, Jan. 10 /Xinhua-PRNewswire/ -- China BAK Battery, Inc.
 ("China BAK", or "BAK") (Nasdaq: CBAK), today announced plans to construct
 a new facility that will focus on product development and manufacture of an
 advanced lithium ion battery cell product line. The facility will be owned
 and operated by BAK's new indirect wholly-owned Chinese subsidiary.
     The new subsidiary, BAK International (Tianjin) Co., Ltd., will be
 located in Tianjin Beichen Hi-Tech Industrial Park. Tianjin is a coastal
 city in northeast China. This prestigious industrial park is a business
 development project of the State Council of The People's Republic of China
 whereby the Council provides government policy incentives to private
 industry. BAK believes that the location offers several advantages
 including ample human resources, excellent shipping and logistics,
 proximity to customers and vendors and available manufacturing support
 resources. The project also affords China BAK certain tax abatements.
     The new battery cells will provide higher energy density and power,
 longer life cycle and shorter charge times as compared to other types of
 lithium- based batteries. The initial customer development programs will
 focus on applications in Light Electric Vehicles, or LEVs, and
 Uninterruptible Power Supply. Among the most prevalent products in the LEV
 space is the electric bicycle. The planned products from this new facility
 also have potential application in hybrid electric vehicles.
     The timing of the construction of the new facility will be dependent on
 the progress of our customer development programs. Historically, China BAK
 has endeavored to add manufacturing infrastructure as sales opportunities
 become clearly defined. The earliest potential shipment from the newly
 planned facility is fiscal 2008, and will become more certain as business
 development activities, and construction of the Tianjin facility progress.
     China BAK has successfully commercialized new product lines due in
 large part, it believes, to its R&D capabilities and experienced sales
 organization focused on new business development. In fiscal 2006, China BAK
 introduced a new line cylindrical battery cells for use in laptop computers
 and scaled its lithium polymer sales for mobile electrical devices
 significantly. BAK believes it is now in an ideal position to expand its
 product lines into these other emerging applications in order to capitalize
 on additional market opportunities.
     "The formation of the BAK International (Tianjin) Co., Ltd. reflects
 the continuing evolution and development of China BAK's battery cell
 business, and we look forward to introducing many more high quality and
 innovative products in the future," commented Xiangqian Li, the President
 and Chief Executive Officer of China BAK. "Our new line of battery cells,
 which we expect to manufacture once our new Tianjin facility is completed,
 is a logical extension of our current product mix, it expands the market
 applications we serve and should strengthen our position as the worldwide
 market leader in lithium-based batteries cells."
     About China BAK Battery Inc.
     China BAK Battery, Inc. is one of the largest manufacturers of lithium-
 based battery cells in China and in the world, as measured by production
 output. It produces battery cells that are the principal component of
 rechargeable batteries commonly used in cellular phones, notebook
 computers, cordless power tools and portable consumer electronics, such as
 digital media devices, portable media players, portable audio players,
 portable gaming devices and personal digital assistants, or PDAs. China
 BAK's 1.9 million square feet facilities are located in Shenzhen, PRC, and
 have been recently expanded to produce new products. China BAK is the
 largest manufacturer of lithium-ion battery cells for China's cellular
 phone replacement battery market.
     Safe Harbor Statement
     This press release contains forward-looking statements, which are
 subject to change. The forward-looking statements are made pursuant to the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. All "forward-looking statements" relating to the business of China
 BAK Battery, Inc. and its subsidiary companies, which can be identified by
 the use of forward-looking terminology such as "believes," "expects" or
 similar expressions, involve known and unknown risks and uncertainties
 which could cause actual results to differ. These factors include but are
 not limited to: risks related to China BAK's business and risks related to
 operating in China. Please refer to China BAK's Annual Report on Form 10-K
 for the fiscal year ended September 30, 2006, filed with the U.S.
 Securities and Exchange Commission, for specific details on risk factors.
 Given these risks and uncertainties, you are cautioned not to place undue
 reliance on forward- looking statements. China BAK's actual results could
 differ materially from those contained in the forward-looking statements.
 China BAK undertakes no obligation to revise or update its forward-looking
 statements in order to reflect events or circumstances that may arise after
 the date of this release.
     For more information, please contact:
 
     Company Contact:
     Jim Groh
     Tel:  +1-843-277-0024
     Email:  jim@BAKbattery.com
 
     Or
 
     Investor Relations Contacts:
 
     Crocker Coulson
     Tel:  +1-646-213-1915
     Email: crocker.coulson@ccgir.com
 
     Elaine Ketchmere
     Tel:  +1-310-231-8600 ext. 119
     Email: elaine.Ketchmere@ccgir.com
 
 SOURCE China BAK Battery, Inc.