Kandi Technologies Issues Letter to Shareholders Detailing Corrected Unit Volumes; Revenues As Reported Were Accurate

Kandi Technologies, Corp. KNDI said it published a letter to its shareholders today to provide a detailed explanation of a reporting error that does not affect reported revenues but does affect unit volumes of products reported in the Company's 2010 Annual Report as filed on Form 10-K. In order to provide continued transparency to shareholders and other interested investors, the Company has filed a copy of the letter with the Securities and Exchange Commission. Kandi's letter to shareholders addresses the error in its filing, specifically within a table outlining the unit and dollar revenue breakdown by product for 2010 and 2009. As the Company previously stated, the dollar amounts for revenues shown in that table were accurate; however the category unit numbers contained discrepancies as a result of two causes. The first was a recategorization of certain models in the 2009 unit volumes to render those numbers comparable to the 2010 unit volumes. The second cause was related to the translation from Chinese accounting standards to U.S. GAAP. Details surrounding these adjustments are included in the letter to shareholders and will be included in the subsequent amendment to the Company's annual report on Form 10-K.