SOURCE: Tongxin International Ltd.

December 13, 2010 16:43 ET

Tongxin International Ltd. Announces Civil Action Against Former Chief Financial and Accounting Officer

CHANGSHA, CHINA--(Marketwire - December 13, 2010) - Tongxin International Ltd. (PINKSHEETS: TXIC), a China-based manufacturer of engineered vehicle body structures ("EVBS") and stamped parts for the commercial automotive industry, today announced that it has commenced legal proceedings against its former Chief Financial Officer and Chief Accounting Officer, Jackie Chang, after an internal investigation uncovered the wrongful transfer of funds as well as other questionable actions.

The investigation into Ms. Chang's activities is continuing. With the approval of the Audit Committee of its Board of Directors, the Company has retained the accounting firm of KPMG and the law firm of Squire Sanders & Dempsey to assist in conducting the investigation and legal proceedings.

William E. Zielke, who was recently named Chief Executive Officer and Chief Administrative Officer of the Company, commented, "We are working diligently, with our outside counsel, to pursue legal proceedings and restore the monies back to the Company."

"We have a solid team in place right now to keep our Company on track as we strengthen our position in the EVBS market."

About Tongxin International Ltd.

Tongxin International Ltd., the largest independent supplier of EVBS in China, is capable of providing EVBS for both the commercial truck and light vehicle market segments. The Company also designs, fabricates and tests dies used in the vehicle body structure manufacturing process. EVBS consists of exterior body panels including doors, floor pans, hoods, side panels and fenders. Tongxin International Ltd. maintains a network of over 100 customers throughout 20 provinces in China. Headquartered in Changsha, the Company also maintains regional manufacturing in Dali, Ziyang and Zhucheng.


Statements contained in this press release, which are not historical fact, constitute Forward-Looking Statements. Actual results may differ materially due to numerous important factors that are described in Tongxin International Ltd.'s reports to the SEC, which may be revised or supplemented in subsequent reports to the SEC. Such factors include, among others, the cost and timing of implementing restructuring actions, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and certain global and regional economic conditions. Tongxin International Ltd. does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

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