SOURCE: Zhongchai Machinery, Inc.

August 18, 2010 12:12 ET

Zhongchai Machinery Has Successfully Launched Transmission Products in China

HANGZHOU, CHINA--(Marketwire - August 18, 2010) -  Zhongchai Machinery, Inc. (OTCBB: EQPI) announced that its wholly owned Chinese subsidiary, Zhejiang Zhongchai Machinery Co., Ltd. ("Zhejiang Zhongchai"), has successfully developed, produced, and distributed its transmission products (Transmission Gearboxes) in China. Zhongchai has produced and delivered over 10,000 sets of the transmission gearboxes to the equipment manufacturers in China in last fiscal year, which is almost five times of that produced and delivered in fiscal year 2009. These transmission products are needed for the fast infrastructure expansion and mainly used for industrial applications, such as forklift trucks. Zhongchai has developed three series of transmission products in the tonnage of 1.8t, 2.5t, and 3-4t with 17 model variations, including mechanical (manual shift) and hydraulic (automatic control) versions. All models are certified and meeting the compliances and industrial standards. After fitting, modification, and compliance tests, more than 20 major forklift truck manufacturers have adopted these newly developed transmission products including the global leaders among the industrial equipment makers.

Zhongchai has entered into an area of business that enjoyed the fast growth of infrastructure build up in China. With its technology advantages and superior production quality, Zhongchai is becoming the market leader in the market sector.

"The successful introduction of our transmission product line makes us setting solid footstep on the market. We will increase our production capability and increase the deliver to meet the market demand. We will continue to develop our next generation products and to be the leader in this market sector," said by Mr. He Mengxin, the president of Zhejiang Zhongchai.

Zhongchai Machinery, Inc.

Zhongchai Machinery, Inc. is a developer, producer, and distributor of gears, transmission gearboxes, and driving systems for industrial and agricultural equipment, such as forklift trucks and diesel engines. It conducts its business in China through its wholly owned subsidiary in China.

FORWARD-LOOKING STATEMENTS

This release contains certain "forward-looking statements" relating to the business of EQPI and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on EQPI's current expectations and beliefs concerning future developments and their potential effects on EQPI There can be no assurance that future developments affecting EQPI will be those anticipated by EQPI. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. EQPI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

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