SOURCE: China Auto Logistics Inc.

China Auto Logistics Inc.

September 28, 2010 08:45 ET

China Auto Logistics Continues Expansion of Popular Portal Into China's Second and Third Tier Cities Where Auto Sales Are Advancing Rapidly

Five Newest Additions Bring Cities Covered by www.cali.com.cn to 29

TIANJIN, CHINA--(Marketwire - September 28, 2010) -  China Auto Logistics Inc. (the "Company") (NASDAQ: CALI), one of China's leading developers of websites for buyers and sellers of imported and domestic automobiles, a top seller in China of imported luxury cars, and a leading provider of auto-related services, announced today it has expanded coverage of its "China Auto Living Internet" portal, www.cali.com.cn, to five additional cities -- Nanchang, Hefei, Nantong, Ningbo and Taiyuan. This brings to 29 the number of cities in China where visitors to the site can obtain comprehensive, up-to-the-minute, local information on the availability and pricing of their favorite domestic and imported auto makes and models, be alerted to sales and promotions, and obtain auto-related tips and discounts on services and products to enhance their driving experience.

"As the success and popularity of our broad spectrum 'auto living' site in cities where it is already established has continued to grow, reception to the site from dealers and consumers in each new targeted city has been quite positive," stated Mr. Tong Shiping, CEO and Chairman of the Company. He added, "This fuels our confidence that we will achieve our goal this year of expanding coverage to 35 cities, up from 15 last year, and reach our goal of 60 cities by the end of next year."

Second And Third Tier Cities Setting The Pace For Auto Sales Growth

Mr. Tong noted further, "The importance of continuing our strategy of expansion into China's second and third tier cities is reflected in the latest auto sales statistics from a variety of sources. Of note, while 2010 automobile sales in China from January through August were up approximately 39% year over year, sales in the same period in China's 'second tier' cities increased approximately 41%, and were up about 51% in its 'third tier' cities, compared with 34% growth in China's large 'first tier' coastal cities. Going forward, we believe this pattern will continue and are moving as quickly as possible to implement our planned expansion to the fastest growing of the second and third tier inland cities."

The Newest "CALI" Cities

The Company described Nanchang, the capital of Jiangxi Province, as a city with a population of just under 5 million, with automobile volume of 410,000 and 63 4S shops (auto dealers). While less developed compared with China's largest cities, its per capita annualized GDP has grown to about $USD5400, and its automobile market is growing rapidly.

The capital of Anhui Province, Hefei, has a population of 4.87 million, and its 86 4S shops support automobile volume of about 400,000 cars.

Nantong is often referred to as "North Shanghai," and has a population of 7.64 million, 70 4S shops and approximately 260,000 automobiles.

Though it has the smallest population (about 3.55 million) in the latest group of cities selected by the Company, Taiyuan, the capital of Shanxi Province, has 96 4S shops and automobile volume of 504,000.

The only port city in the group, Ningbo, with a population of 5.68 million, is China's fourth largest port and has approximately 940,000 automobiles and 98 4S shops.

About China Auto Logistics Inc. (CALI)

With 2009 sales of approximately $215 million, China Auto Logistics Inc. operates www.cali.com.cn, which rapidly has become one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services throughout China. The Company also is one of China's top sellers of luxury imported cars as well as one of the country's leading developers of websites for buyers and sellers of imported and domestic automobiles. Recently initiating auto-related services for dealers and purchasers of domestic autos, it is China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide and manager of the large imported auto mall in Tianjin. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Its www.at160.com site, focused on the domestic auto market, has climbed rapidly to become one of the top domestic auto websites and ranks among the top 125 most visited sites in China. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit www.chinaautologisticsinc.com.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.

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