Highway Holdings and Joint Venture Partners Announce Automation Equipment Sales

Highway Holdings and Joint Venture Partners Announce Automation Equipment
Sales

HONG KONG, Dec. 18, 2012 (GLOBE NEWSWIRE) -- Highway Holdings Limited
(Nasdaq:HIHO) today announced its automation equipment manufacturing joint
venture has received orders with an aggregate value of approximately $1.1
million during the past few months from five separate companies located in
Shanghai and the Great Pearl River Delta regions that operate within the
automotive, white goods, consumer products and component manufacturing
sectors.

"Demand for sophisticated automation equipment from manufacturers in China is
increasing due to a rise in the amount of high quality, technologically
sophisticated manufacturing being conducted in China, as well as the dramatic
rise in labor costs and concurrent labor shortages. We have received extensive
interest in our automation equipment during recent trade shows, which bodes
well for further product sales opportunities," said Roland Kohl, president and
chief executive officer of Highway Holdings.

"As China continues its transition from being a low-cost labor manufacturer to
a producer of sophisticated high-end products, the demand for automated
machinery should increase.Our automation equipment features advanced German
technology and offers manufacturers an attractive and efficient solution,
particularly for automotive companies engaged in high-volume and high-quality
assembly and testing," Kohl added.

The joint venture, which was formed in 2009 in Hong Kong and previously
announced, operates under the name Xenon Automation Asia Ltd., utilizing
Highway Holdings' facilities in Hong Kong and China for its manufacturing and
service operations and Xenon's operation in Dresden, Germany for design and
development.Highway Holdings is the largest shareholder with a 50 percent
ownership position.Xenon Automatisierungstechnik GmbH holds 40 percent and
Matrix Systems International Ltd. holds 10 percent.

Kohl noted that Highway Holdings was the joint venture's initial customer,
utilizing the automation equipment to upgrade its own manufacturing
capabilities and streamline the company's manufacturing-cost structure."This
not only enabled Highway Holdings to greatly benefit from the implementation
of automation equipment for certain production requirements, but has also
allowed the joint venture to showcase the technology and capabilities from a
location convenient to end-users in China.

Xenon Automatisierungstechnik GmbH (www.xenon-automation.com) is a 22-year old
highly regarded automation equipment company that designs, develops and
manufactures specialized state-of-the-art machinery and equipment for
well-recognized international companies operating within the automotive,
electronic, photovoltaic and medical technology sectors.

About Highway Holdings

Highway Holdings produces a wide variety of high-quality products for blue
chip original equipment manufacturers -- from simple parts and components to
sub-assemblies and finished products. Highway Holdings' administrative offices
are located in Hong Kong and its manufacturing facilities are located in
Shenzhen in the People's Republic of China.

Except for the historical information contained herein, the matters discussed
in this press release are for-ward-looking statements which involve risks and
uncertainties, including but not limited to economic, competitive,
governmental, political and technological factors affecting the company's
revenues, operations, markets, products and prices, and other factors
discussed in the company's various filings with the Securities and Exchange
Commission, including without limitation the company's annual reports on Form
20-F.

CONTACT: Gary S. Maier
         Maier & Company, Inc.
         (310) 471-1288
 
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