China Electric Motor Engages Independent Adviser on Sarbanes-Oxley Compliance

Jun 17, 2010, 08:30 ET from China Electric Motor

SHENZHEN, China, June 17 /PRNewswire-Asia-FirstCall/ -- China Electric Motor, Inc. (Nasdaq: CELM, "China Electric" or "the Company"), a Delaware corporation and China-based company that engages in the design, production, marketing and sale of micro-motor products through its subsidiary Shenzhen YuePengCheng Motor Co., Ltd. ("Shenzhen YPC"), today announced that it has engaged one of the big four accounting firms as an independent Sarbanes-Oxley adviser. The Company's internal team will execute and maintain the controls on a daily basis. The accounting firm will advise the Company in the areas of implementing and maintaining adequate internal controls as required under Section 404 of the Sarbanes-Oxley Act of 2002.

Mr. Yue Wang, Chief Executive Officer of China Electric, said, "The engagement of the adviser demonstrates our commitment to building investor confidence through meticulous internal financial controls and procedures. We strive to implement continuous improvements to our reporting processes in order to enhance our efficiency and transparency, and to ensure that we are in compliance with the reporting requirements for a publicly-listed company in the United States, including Section 404 of the Sarbanes-Oxley Act of 2002."

About China Electric Motor, Inc.

China Electric Motor, Inc. (Nasdaq: CELM) is a China-based company that engages in the design, production, marketing and sale of micro-motor products through its subsidiary Shenzhen YPC. The Company's products are incorporated into consumer electronics, automobiles, power tools, toys and household appliances, and are sold under its "Sunna" brandname. The Company provides micro-motor products that meet the growing demand for efficient, quiet and compact motors from manufacturers of consumer electronics, automobiles, power tools, toys and household appliances. China Electric Motor, Inc. sells its products directly to original equipment manufacturers and to distributors and resellers both domestically in the People's Republic of China and internationally to customers in Korea and Hong Kong. The Company's manufacturing facilities are located in Shenzhen, Guangdong.

Forward-looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including our ability to maintain and increase revenues and sales of our products, our ability to develop and market new products, our strategic investments and acquisitions, compliances and changes in the laws of the People's Republic of China (the "PRC") that affect our operations, and vulnerability of our business to general economic downturn, especially in the PRC, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.


Investor Contacts:


Dexter Fong

China Electric Motor, Inc.

+86 (755) 8278 6083

dexterfong@gmail.com

Simon Ze

China Electric Motor, Inc.

+86 (755) 8257 7750

ze_simon@hotmail.com

Investor Relations (HK):

Ruby Yim

Taylor Rafferty

+852 3196 3712

ChinaElectricMotor@Taylor-Rafferty.com

Investor Relations (US):

Delia Cannan

Taylor Rafferty

+1 (212) 889-4350

ChinaElectricMotor@Taylor-Rafferty.com


Media Contact:

Jason Marshall

Taylor Rafferty

+1 (212) 889-4350

ChinaElectricMotor@Taylor-Rafferty.com


Investor Relations (US):

John Baldissera

BPC Financial Marketing

+1 (800) 368-1217




SOURCE China Electric Motor