China BAK to Supply Lithium-ion Batteries to FAW-Volkswagen Automotive Co., Ltd.

China BAK plans to deliver three lithium-ion battery units to FAW-Volkswagen by the end of September 2012. FAW-Volkswagen will utilize the Company's lithium-ion battery units to power its electric cars and to test the performance and reliability of the battery units.

"FAW-Volkswagen is a leading passenger car manufacturer in China and we look forward to delivering our lithium-ion battery units to power its new electric car. Our cooperation with FAW-Volkswagen demonstrates our technological strength and market recognition. Upon successful testing, we expect to expand the scope of our cooperation and hope to receive additional orders," commented Mr. Xiangqian Li, CEO of China BAK.

About FAW-Volkswagen Automobile Co. Ltd.

FAW-Volkswagen Automotive Co., Ltd. is a major passenger sedan joint-venture of FAW Group Corporation and Volkswagen AG, Audi AG and Volkswagen Automobile (China) Investment Co., Ltd. It is China's first modern passenger sedan industrial base of considerable economic scale. FAW-Volkswagen adopts advanced technologies and equipment to manufacture some of the world's most famous brands – Jetta; Bora; Golf; Caddy; Sagitar and Audi.

For more information regarding FAW-Volkswagen, please visit http://www.faw-vw.com/en/index.php.

About China BAK Battery, Inc.

China BAK Battery, Inc. (NASDAQ: CBAK) is a leading global manufacturer of lithium-based battery cells. The Company produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, smartphones, notebook computers, e-bikes, electric vehicles, power tools, uninterruptible power supplies, and portable consumer electronics such as portable media players, portable gaming devices, personal digital assistants, or PDAs, camcorders, digital cameras, and Bluetooth headsets. China BAK Battery, Inc.'s production facilities, located in Shenzhen and Tianjin, PRC, cover over three million square feet. For more information regarding China BAK Battery, Inc., please visit http://www.bak.com.cn.

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: the ability of the Company to meet its contract obligations; the uncertain market for the Company's high-power lithium and other battery cells; business, macroeconomic, technological, regulatory, or other factors affecting the profitability of battery cells designed for electric vehicles; and 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, 2011, as well as China BAK's Quarterly Reports on Form 10-Q that have been filed since the date of such annual report, 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.

SOURCE China BAK Battery, Inc.