SOURCE: China Jiangsu Golden Horse

June 26, 2008 09:45 ET

China Jiangsu Golden Horse Steel Ball Letter to Shareholders

XUYI, JIANGSU, CHINA--(Marketwire - June 26, 2008) - China Jiangsu Golden Horse Steel Ball, Inc. ("Golden Horse" or "the Company") (PINKSHEETS: CJGH) (FRANKFURT: 4J3), a leading Chinese manufacturer and supplier of ball bearings.

To our Shareholders:

China Jiangsu Golden Horse Steel Ball, Inc. is extremely encouraged by the dramatically increasing global demand for steel bearings and the positive effect it has had on the industry and in the Company's revenues.

As one of the largest producers of steel bearings in China, Golden Horse produces over three billion ball bearings annually and has developed over 15 new products that are exported to over twenty countries worldwide including the USA, Japan, Brazil, India, and Germany.

We at Golden Horse have always prided ourselves on our high technical standards, our continuing drive for quality improvements and excellence in customer service, both domestically and abroad. The engineering team at Golden Horse continues to aggressively improve its technology and know-how in order to become a leader in the research and development of high quality ball bearings. The quality of our products and the growing global demand for steel bearings has resulted in positive growth in company sales both from our existing client base and in the acquisition of new clients.

Accordingly, Golden Horse has experienced unprecedented record revenue growth in 2008. The Q1 revenues of $6.3 million equated approximately 48.79% of the total revenues realized in the entire 2007 fiscal year. The Company also realized a dramatic increase in gross profit margin as the result of the capital investments made in 2007 that improved our product offerings, modernized our equipment and machinery, and included the opening of our new plant in Xuyi. Golden Horse also instituted a "market adjustment" on the price of our steel balls by 15-20% per product line. The price increase, due to rising demand for steel products globally, will also reflect in the overall bottom line of our revenues in 2008 and forward. We are continuing to forecast strong sales in all of our products over the coming year.

As a publicly listed company in the United States and the Frankfurt Exchange in Europe, we are ecsatic about our successes to date, and we are extremely optimistic about our prospects going forward. We are making every effort to build upon the momentum generated over the past six months and continue to aggressively implement our growth strategy through the rest of 2008 and beyond, and we want to thank our loyal shareholders for their support as we enter this next phase of our business.

Yours truly,

Management

About Us:

Golden Horse along with its affiliates and controlled entities is one of the top five manufacturers of steel ball bearings in China. The Company produces over three billion ball bearings annually of various specifications along with its development of over 15 new products, such as stainless steel balls, aluminum balls, and ceramics balls. In addition, the Company continues to export its products to over twenty countries worldwide including the USA, Japan, Brazil, India, and Germany.

Forward-looking Statements:

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

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