CHAMCO AUTO Announces Expansion of Product Line to Include Sedans and CrossoversFor Export to U.S.

PARSIPPANY, N.J., Nov. 22, 2006 -- Hebei Zhongxing Automobile Company, Ltd. (ZXAUTO China) and the Changchun Government have entered into a joint venture to produce sedans and crossover vehicles. Product from this joint venture will be sold exclusively and solely through ZXAUTO CHANGCHUN China, a wholly owned subsidiary of ZXAUTO China, to be exported to North America through CHAMCO AUTO. This effectively expands CHAMCO AUTO's market entry-priced line of SUVs and pick-ups to now include sedans and crossovers. CHAMCO AUTO intends to import a vehicle designed as a mid-sized sedan but sold just under the price of a compact sedan. Bill Pollack, CHAMCO AUTO's Executive Vice President of Strategic Planning and Marketing, made the announcement.

ZXAUTO China owns 51 percent of this new joint venture and production is scheduled to begin in late 2008. Capacity is expected to reach an output of 300,000 vehicles per year. Earlier, ZXAUTO China had obtained an existing assembly plant from the Changchun Chanlin group (a Changchun motorcycle producer) in exchange for ZXAUTO China shares.

The Changchun Government has donated two million square meters of land adjacent to that existing property. In addition, the Changchun Government has secured a loan of a $1 Billion Yuan (approximately equivalent to US$127 Million) from the Central Government for this joint venture for plant expansion, upgrades and working capital.

ZXAUTO China will be retrofitting existing equipment in the existing Changchun facility to assemble SUVs and pick-ups and will produce sedans and crossovers in the new expanded portion of the property. ZXAUTO CHANGCHUN China has received an official license from the People's Republic of China to produce and export sedans, despite the government's push to cut back existing car manufacturing facilities in the country. ZXAUTO China has already moved its research and development facility to the Changchun plant. Changchun is the capital of the Jilin province in Northeast China and has often been described as the "Detroit of China".

"This is tremendous news for CHAMCO AUTO. The venture virtually doubles the number of vehicles that CHAMCO AUTO can import and sell over the next five years under the favorable conditions of its exclusive North American contract with ZXAUTO China. It will significantly fill out the line of market entry- priced vehicles available to offer to consumers, priced about 20% below comparably equipped models from name brand competitors," said Mr. Pollack. "Most importantly, CHAMCO AUTO and its subsidiaries, ZXAUTO NA and ZXAUTO CHANGCHUN, are offering the opportunity for potential dealer investors to become part of this historic venture. We already have 15 dealer investors signed on and are seeking up to 150 such dealer investors to join the other stakeholders -- ZXAUTO China, key suppliers, CHAMCO partners and dealer investors -- jointly having equity in this enterprise," adds Mr. Pollack.

CHAMCO AUTO, based in Parsippany, New Jersey, expects to become the first company to import Chinese-made vehicles into the United States. Further information about ZXAUTO China can be found at http://www.zxauto.com.cn/ . More information on CHAMCO AUTO can be found at http://www.chamcoauto.com/ .