China Automation Group Limited

Records Satisfactory Subscription & Public Offer Results

Approximately 54 times subscribed in Public Offer

[10 July 2007, Hong Kong] – China Automation Company Limited (“CH Automation” and its subsidiaries, collectively the “Group”, stock code: 569) today announces that the results of the share offer in connection with its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”) has been well received by the market. The Placing shares have been significantly over-subscribed, whereas the Public Offer shares are approximately 54 times subscribed.

Due to the over-subscription in the Public Offer, the clawback mechanism has been applied and the number of Offer Shares allocated to the Public Offer has been increased to 80,000,000 Public Offer Shares, representing 40% of the total number of Offer Shares initially available for subscription under the Share Offer. At the Offer Price of HK$1.53 per Offer Share, the net proceeds of the Share Offer to the Company, after deducting related expenses, are estimated to be approximately HK$270.0 million (without taking into account the Shares that may be issued pursuant to the exercise of the Over-allotment Option).. Dealings in the shares of CH Automation are expected to commence on the Main Board on 12 July 2007 (Thursday).

First Shanghai Capital Limited is the Sponsor, while First Shanghai Securities Limited and Daiwa Securities SMBC Hong Kong Limited are the Joint Bookrunners and Joint Lead Managers.

Mr. Xuan Rui Guo, Chairman of China Automation Group Limited, expressed his satisfaction with the results of the share offer, saying, “These impressive results reflect the strong confidence of investors and the public in our business, growth potential and market prospects. CH Automation is involved in the high-potential emergency and critical control systems industry, and is renowned for providing consistently high quality products and professional services. On this basis, we believe the Group has great scope for further development. On behalf of CH Automation, I would like to express my sincere gratitude to all investors for their support. In the future, we will continue actively pursuing business expansion opportunities so as to deliver the best possible returns to our shareholders.”

The steady growth of China’s economy has been a significant boost to the development of the country’s oil and gas, petrochemical, chemical and railway industries. As increasing emphasis has been placed on the need for better industrial safety within these massive industries, so demand for emergency and critical control systems has grown steadily over recent years. To satisfy this growing demand, CH Automation plans to establish a research and development centre that will enhance its engineering and R&D capabilities, and also plans to expand the size of its production site. The Group will also establish branch and liaison offices in different parts of the world, thus expanding its sales and service network and extending the options for applying its products within different industries. Further, the Group will pursue appropriate M&A opportunities as a way of pushing forward towards globalization.

Discussing the Group’s plans, Mr. Xuan expressed firm confidence in the future. “The emergency and critical control systems industry is booming,” he noted, “and we are confident that we can respond to market trends and grasp the enormous opportunities arising in the industry. We also aim to expand our market coverage by extending our business into overseas markets. At the same time, we will continue to improve our product quality and enhance our management expertise, providing our customers with better products and services and further broadening the scope of our business. Ultimately, our goal is to deliver the best possible returns to our shareholders.”

About CH Automation:

CH Automation was established in 1999, and today is the largest safety and critical control systems provider in the PRC. The Group specializes in providing professional safety and critical control systems and related maintenance services to the petrochemical, oil and gas and railway industries. According to research by Frost and Sullivan, in 2006 the Group held a 68% share of China’s safety and critical control systems market, reflecting the Group’s leading position. Since its establishment, CH Automation has sold over 600 safety and critical control systems and successfully developed eight software systems for use in the petrochemical, oil and gas and chemical industries. The main products designed and produced by the Group include Emergency Shutdown Devices (“ESD”), Fire and Gas Systems (“FGS”), Integrated Turbine and Compressor Centres (“ITCC”), and Railway Interlocking Systems (“RIS”).

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Issued by Porda International (Finance) PR Company Limited for and on behalf of China Automation Group Limited. For further information, please contact:

Ms. Kelly Fung / Ms. Sheila Chow / Ms. Phoebe Sou

Porda International (Finance) PR Company Limited

Tel: 2151-0915 / 3529-1377 / 2185-6353             Fax: 2544-6126

Email: kelly@pordafinance.com.hk / sheila@pordafinance.com.hk / phoebe@pordafinance.com.hk