SOURCE: China Auto Logistics, Inc.

China Auto Logistics, Inc.

September 23, 2009 06:50 ET

China Auto Logistics Expands Domestic Automobile Websites to Three New Major Cities

Shanghai, Chengdu and Guangzhou as Well as Beijing to Serve as Key Hubs for Further Expansion; Company's Domestic Sites Continue to Climb in Rankings

TIANJIN CITY, CHINA--(Marketwire - September 23, 2009) - China Auto Logistics Inc. (NASDAQ: CALI), a leader in China's luxury imported car market, and operator of the leading imported car website in China, today announced another major step in the expansion of its increasingly successful domestic automobile website, www.at160.com, which serves buyers and sellers of China's domestically manufactured autos. The Company said it has now launched www.at160.com in Shanghai, Chengdu and Guangzhou, increasing the number of key cities served by its domestic websites from 12 to 15. These three new cities and Beijing -- where the Company already operates a successful site -- will be the key hub cities for future expansion plans.

Ahead of Plan

Mr. Tong Shiping, CEO and President of the Company, stated, "The transformation of our Company from a leader in imported luxury car sales to a leading web-based, modernized logistics and services provider in the domestic auto market is continuing ahead of plan. In a brief ten-month span, we have seen www.at160.com increasingly gain traction in the 12 key cities where we have launched the site, including Beijing, where participation by 4S shops (car dealers) has continued to expand and the up to date, accurate information they contribute to each site is attracting growing numbers of likely auto buyers."

Gain in Ranking

The Company noted that in recent statistics published by www.chinarank.org.cn, www.at160.com has quickly climbed to 5th place overall among all automobile websites in China, based on "unique visits" per million browsers, which reached 2500 IP addresses per million in the most recent period covered by the survey. Compared with websites in all categories, www.at160.com quickly also has climbed into the top 200 in China, where over 2.87 million websites are operating, a very noteworthy achievement at such a very early stage of its development.

Building on Success: 60 Cities by 2012

"Based on this success," Mr. Tong said, "we have moved ahead to launch the site in three new cities which complete the foundation we are establishing in the four major hubs we see representing over 70% of auto buying in China."

"The next steps in our strategic plan," he added, "beyond building the sites in our four key hubs and surrounding cities, will be the introduction of web-based value-added services for the auto dealers and their customers which, in time, we expect will become our major profit contributors and at least 50% of website revenues. By 2012, we continue to expect to have our domestic site in 60 cities in total, or four times the current number."

Newest Additions

Following many months of surveys of consumers and data collection from 4S dealers, the Company has established exciting, information packed sites in each new city:

Shanghai: The top city in China in terms of GDP, which reached more than $200 billion in 2008. With a population of about 19 million, more than 1.32 million autos and 2008 auto sales volume of 131,500 cars, Shanghai currently has 156 4S shops and the Company expects to sign up 30% of them in 2010. By mid-2010, it expects to begin generating profit on the site after initially offering discounts and free ads to encourage sign ups. Shanghai, as the most economically developed city in China, will be the hub of the Company's "Middle China" development in the important Yangtze River Delta.

Chengdu: As the capital of Sichuan province, together with Chongqing will be the hub of future growth in "Southwest China." In 2008, auto sales were over 200,000 with over 2 million vehicles on the road served by 135 4S shops in a city that produced over $57 billion in GDP and is the home to an 11+ million population.

Guangzhou: The Company's site in this city will serve over 10 million people who produced the third highest GDP in China in 2008 of $120 billion. The city numbers 1.3 million autos and saw auto sales volume of 113,700 last year serviced by 135 4S shops. Viewed as the hub of "South China/Pearl River Delta" region.

The Company said that its site in Beijing will be the basis for further expansion in the "North China" region. Together with surrounding cities there and the cities in the Yangtze River and Pearl River Deltas, these regions account for more than 70% of all current auto sales in China.

Description of China Auto Logistics Inc.

With 2008 sales of approximately $190 million, China Auto Logistics Inc. (NASDAQ: CALI) 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. It is also China's leading "one stop" provider of logistical services and financing to imported car dealers nationwide. The Company has made the strategic decision to de-emphasize imported auto unit sales in favor of expanding its new, highly profitable domestic auto websites which are accessible through its national website, www.at160.com, launched in May, 2009. Its subscription and advertising based www.at188.com is the number one site for imported car dealers and consumers. Already contributing significantly to profits, the Company believes further expansion of its websites, including the addition of new web-based auto-related services, will drive future growth. For additional information: 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.

Contact Information

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