Date: 2013-07-31

Luoyang Bearing Science & Technology Co. to Establish New Company

Luoyang Bearing Science & Technology Co. announced that it will establish a Luoyang-based company with a registered capital of RMB 5 million. The new company will be mainly engaged in the manufacturing and selling of products without high technology.

Luoyang Bearing Science and Technology Co., Ltd. (Bearing-Sci&Tech) is a China-based bearing manufacturer. The Company is principally engaged in the research, development, manufacture and sale of bearings, electric spindles, as well as bearing processing equipment and measuring instruments and related products.

The Company's major products include special bearings, precision machine tool bearings, electric spindles, grinding and superfinishing automatic production lines, as well as precision cold rollers.

During the year ended December 31, 2007, the Company obtained approximately 61% and 11% of its total revenue from its bearing and technical businesses, respectively. The Company distributes its products within the domestic market and to overseas markets. As of December 31, 2007, the Company had one major subsidiary / associate.

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