Kandi Returns to Profitability in Second Quarter; Maintains Forecast of Stronger Second Half With Expected Boost From Electric Car Sales in China

JINHUA, CHINA--(Marketwire - August 17, 2009) - Kandi Technologies, Corp. (NASDAQ: KNDI), an
established China-based leader in the design and manufacture of all terrain
recreational vehicles, and the designer and manufacturer of the COCO all
electric super mini auto, today announced results for its second quarter
and first half ended June 30, 2009.

The Company said that results in the quarter continued to be heavily
impacted by worldwide economic conditions, particularly in the U.S., which
traditionally has accounted for the majority of Kandi's sales.
Consequently, sales and net income in the quarter and first half were well
below the comparable periods last year. Nevertheless, through careful cost
management, the Company reported it was able to achieve a slight profit in
the second quarter while continuing to invest in new products. In
particular, Kandi said it is awaiting what it believes will be final
approvals from Chinese authorities to launch sales in China of its battery
powered COCO super mini car, which the Company believes will contribute
significantly to a second half turnaround.

A Small Profit

The Company reported that revenues in the second quarter of 2009 were
$5,481,551 compared with $12,424,373 in the same period last year, as sales
in particular of the Company's ATRVs were impacted by the recession. By
adjusting costs to align with recession impacted sales, the Company said it
achieved net income of $226,373 or $0.01 per share in the period, compared
with net income of $2,436,451 or $0.12 per share in the same period last
year.

While revenues in the quarter and first six months of 2009 sharply
declined, the expenditure for R&D increased 318% through the first six
months and more than 159% in the quarter. This is a reflection of the
Company's commitment to building a strong sales presence in China, not only
with its battery powered car, but also with other new products such as its
four-wheel drive "Farmer's Pickup" aimed at the Chinese agricultural market
and expected to be launched by year end.

Through the first half of 2009, revenues were $9,487,455, down 56.4% from
$21,753,075 in the same period a year earlier. Reflecting the first
quarter loss reported by the Company, the loss in the first six months of
2009 was $(356,525), or $(0.02) per share, compared with net income in the
first half of 2008 of $3,510,413, or $0.18 per share.

Focus Is On COCO Launch In China

Mr. Xiaoming Hu, Chairman and CEO of the Company, stated, "As we are
operating in a very difficult environment, we were pleased to have stemmed
our losses, while also making substantial progress in our plan to achieve
at least 50% of our sales this year in China, where economic conditions
currently are much more favorable than in the rest of the world. Our main
focus has been on developing our new battery powered COCO super mini car,
for which we have established a production facility ready to roll out cars
for the Chinese market as soon as we attain final governmental approval.
We believe that following months of successful testing this approval is
imminent."

He continued, "While awaiting final approval, we have been quite busy
preparing dealers and the Chinese market for the COCO which, in addition to
its striking appearance, has numerous features we think will appeal to cost
conscious Chinese commuters. While the amount of the announced government
grant to individual COCO purchasers has not been finalized, we expect it
will be substantial -- making the COCO especially affordable -- and, of
course, it will be running on batteries rather than gasoline."

Government Sales Support Sales Targets

"Recently," Mr. Hu added, "we announced that we have been targeting sales
of our electric cars not only at individual consumers in China, but also at
government agencies. We have signed letters of intent with two Postal
Service branches for what we believe will be fleet purchases, a program
that could be replicated nationally. This is a program we are continuing
to pursue and is a key factor underlying our previously announced full year
sales projections."

The Company said it also continues to focus on other new products it
believes are potential strong sellers in the U.S., even in the current
environment. Among them is a new high mileage, two-seater, three-wheeled
motorcycle that achieved some success in the second quarter and is expected
to attract additional consumers in the period ahead.

"During the quarter," Mr. Hu said, "we also recorded some initial sales in
the U.S. of our electric COCO convertible and are continuing to ship the
vehicle based on demand from dealers there."

Outlook

"Looking ahead," Mr. Hu said, "we are very excited about second half
prospects once the COCO is launched in China. If successful, we believe we
will be the first Company to mass produce an electric vehicle, setting the
stage for what we think will be sustainable growth in years to come with a
product that meets the needs of the times. We see great opportunity in
China, but by no means will abandon our sales efforts worldwide, where
Kandi's products have become increasingly well known for their performance,
high quality and curb appeal."

About the Company

In 2008, Kandi Technologies, Corp. (NASDAQ: KNDI) generated nearly $41
million in sales and profits of about $5 million, principally from its core
All Terrain Recreational Vehicle (ATRV) business. The Company ranks as one
of the largest manufacturers and exporters of go-karts in China, making it
a world leader in the production of this increasingly popular recreational
vehicle. It also ranks among the leading manufacturers in China of all
terrain vehicles (ATVs). A more recent Company focus has been on
specialized utility vehicles (UTVs), especially for agricultural purposes.
The Company also is launching a second generation high mileage, two seater
three-wheeled motorcycle, and a highly economical, beautifully designed,
super mini car -- the COCO -- for neighborhood driving and commuting. Kandi
believes that battery powered, electric super mini cars will become the
Company's largest revenue and profit generator. While nearly all Kandi
products historically have been exported, including more than 65% to the
U.S., the Company is intensifying efforts to shift 50% of its sales to
China where markets have continued to be strong.

The Company's products can be viewed at http://www.chinakandi.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 Securities and Exchange Commission.

KANDI TECHNOLOGIES, CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS)
(UNAUDITED)

Three Months Ended Six Months Ended
------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
----------- ------------ ----------- --------------

REVENUES, NET $ 5,481,551 $ 12,424,373 $ 9,487,455 $ 21,753,075

COST OF GOODS SOLD (4,037,629) (9,139,131) (7,063,351) (16,316,178)
----------- ------------ ----------- --------------

GROSS PROFIT 1,443,922 3,285,242 2,424,104 5,436,897
----------- ------------ ----------- --------------
Research and
development 580,772 224,146 1,106,973 264,816
Selling and
distribution
expenses 97,810 180,596 183,994 409,102
General and
administrative
expenses 363,103 432,238 930,918 704,682
Stock based
compensation
expense 315,175 - 525,292 -
----------- ------------ ----------- --------------
INCOME (LOSS) FROM
OPERATIONS 87,062 2,448,262 (323,073) 4,058,297

Interest expense,
net (109,253) (395,087) (418,557) (1,009,699)
Government grants 24,951 17,274 124,005 40,574
Other income, net 245,971 (1,948) 302,185 20,047
----------- ------------ ----------- --------------
INCOME (LOSS) FROM
OPERATIONS BEFORE
INCOME TAXES 248,731 2,068,501 (315,440) 3,109,219

INCOME TAX
(EXPENSE) BENEFIT (22,358) 33,920 (41,085) 73,660
----------- ------------ ----------- --------------

INCOME (LOSS) FROM
CONTINUING
OPERATIONS 226,373 2,102,421 (356,525) 3,182,879
----------- ------------ ----------- --------------

DISCONTINUED
OPERATION
Loss from
discontinued
operation - (34,219) - (33,379)
Gain from
disposition of
discontinued
operation - 368,249 - 360,913
NET GAIN FROM
DISCONTINUED
OPERATION - 334,030 - 327,534
----------- ------------ ----------- --------------

NET INCOME (LOSS) 226,373 2,436,451 (356,525) 3,510,413
----------- ------------ ----------- --------------

KANDI TECHNOLOGIES, CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS)
(UNAUDITED)

Three Months Ended Six Months Ended
----------------------- ----------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
----------- ----------- ---------- -----------
OTHER COMPREHENSIVE INCOME
Foreign currency
translation 16,121 93,622 28,419 350,834
----------- ----------- ---------- -----------
COMPREHENSIVE (LOSS) INCOME 242,494 2,530,073 (328,106) 3,861,247
=========== =========== ========== ===========

WEIGHTED AVERAGE SHARES
OUTSTANDING BASIC 19,961,000 19,961,000 19,961,000 19,961,000
----------- ----------- ---------- -----------
WEIGHTED AVERAGE SHARES
OUTSTANDING DILUTED 21,126,517 19,961,000 19,961,000 19,961,000
=========== =========== ========== ===========

NET INCOME (LOSS) PER SHARE
FROM CONTINUING
OPERATIONS, BASIC $ 0.01 $ 0.11 $ (0.02) $ 0.16
----------- ----------- ---------- -----------
NET INCOME (LOSS) PER SHARE
FROM CONTINUING
OPERATIONS, DILUTED $ 0.01 $ 0.11 $ (0.02) $ 0.16
=========== =========== ========== ===========

NET INCOME PER SHARE FROM
DISCONTINUED OPERATIONS,
BASIC AND DILUTED $ - $ 0.01 $ - $ 0.01
=========== =========== ========== ===========

NET INCOME (LOSS) PER
SHARE, BASIC $ 0.01 $ 0.12 $ (0.02) $ 0.18
----------- ----------- ---------- -----------
NET INCOME (LOSS) PER
SHARE, DILUTED $ 0.01 $ 0.12 $ (0.02) $ 0.18
=========== =========== ========== ===========