Caas Receives Additional Letter From Nasdaq

China Automotive Systems, Inc. CAAS, a leading power steering components and systems supplier in China, today announced that on May 16, 2011, as expected, it received an additional notification letter (the "May 16th Notification Letter") from the Nasdaq Stock Market indicating that the Company was not in compliance with the continued listing requirements under Nasdaq Listing Rule 5250, which requires the timely filing of SEC periodic reports, due to the delayed filing of CAAS's quarterly report on Form 10-Q for the three-month period ended March 31, 2011 (the "2011 Form 10-Q"). This letter follows the notification letter received by CAAS on March 17, 2011 (the "Initial Notification Letter") in response to the delayed filing of CAAS's annual report on Form 10-K for the year ended December 31, 2010 (the "2010 Form 10-K"). As with the first letter, the May 16th Notification Letter has no immediate effect on the listing or trading of CAAS's shares on Nasdaq.