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Kandi Technologies Forms Joint Venture With Geely Auto to Create a New Era of EV in China



Kandi Technologies Forms Joint Venture With Geely Auto to Create a New Era of
EV in China

HANGZHOU, China, Feb. 4, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group,
Inc. (the 'Company' or 'Kandi') (Nasdaq:KNDI), a leading Chinese manufacturer
and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs),
today announced that on February 1, 2013, the Company's wholly owned
subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ('Kandi Vehicles') has signed a
cooperation framework agreement with Shanghai Maple Guorun Automobile Co.,
Ltd. ('Shanghai Maple'), a 99% owned subsidiary of Geely Automobile Holdings
Ltd. (Hong Kong Stock Exchange, Stock Code: 175) ('Geely Auto'), to establish
a joint venture company, named Zhejiang Kandi Electric Vehicles Investment Co,
Ltd. ('JV Company') to engage in the investment, research and development,
production, marketing and sales of electronic vehicles in China. Geely Auto is
one of the largest and most well-known automobile manufacturers in China. In
August 2010, Geely Auto acquired Volvo Car Corporation from Ford Motor
Company.

Pursuant to the terms of the framework agreement, the JV Company will be owned
50% by Shanghai Maple and 50% by Kandi Vehicles. The registered capital of the
JV Company will be RMB1,000,000,000, and with 50% to be contributed by each
party. Upon the establishment of the JV Company, the JV Company will acquire
certain assets from Kandi and Geely Auto in order for the JV Company to
process the necessary properties, assets and technologies to conduct the EV
business.

To enable the proposed enterprise to take place, both Kandi and Geely Auto
will establish new wholly-owned subsidiaries and inject certain assets into
these companies. The JV Company will then acquire all the equity interests in
each of these companies. As the principal terms of the potential transaction
are yet to be finalized, we will make further announcements pursuant to the
requirements of the rules and regulations as and when appropriate.

The purpose for Kandi to enter into the framework agreement is to leverage on
the strength, resources and expertise of both Kandi and Geely Auto in the
electric vehicle segment in China. With the concerted efforts from both
parties, there will be synergy for the JV Company to become an industry leader
in the EV segment in the future, which will be beneficial to both Kandi and
Geely Auto.

The board of directors of the JV Company will consist of four directors, of
which two will be nominated by Kandi Vehicles and two will be nominated by
Shanghai Maple. Mr. Shufu Li, Chairman of Geely Auto will be appointed to be
the first Chairman of the JV Company and Mr. Xiaoming Hu, Chairman & CEO of
Kandi will be appointed to be first General Manager. Each appointment is for a
term of three years.

Mr. Xiaoming Hu, Chairman & CEO of Kandi comments, "In the past decade, the
electric vehicle development has enabled EV segment to become an important
component of the global automobile industry. Given the growing trend of
environmental awareness of consumers as well as the fast development of the EV
industry, China's EV market presents tremendous growth potential and
opportunities to Kandi."

"The purpose of the framework agreement is to leverage Kandi and Geely Auto's
strengths, resources and expertise in EV in order to generate synergies
through the joint efforts. I am confident that the JV Company will soon become
the EV industry leader in China and with this win-win cooperation, Kandi will
embrace an even more exciting new era of EV in the future." Mr. Hu concluded.

About Kandi Technologies Group, Inc.

Kandi Technologies Group, Inc. (Nasdaq:KNDI) is a manufacturer and exporter of
a variety of vehicles in China, making it a world leader in the production of
popular off-road vehicles (ORVs). It also ranks among the leading
manufacturers in China of all-terrain vehicles (ATVs), specialized utility
vehicles (UTVs), and a recently introduced second-generation high mileage,
two-seat three-wheeled motorcycle. Another major company focus has been on the
manufacture and sale of the COCO electric vehicle (EV), a highly economical,
beautifully designed, all-electric super mini-car for neighborhood driving and
commuting. The convertible and hardtop models of the COCO EV are available in
the United States and other countries, while the Chinese government has
approved the sale of Kandi EVs in China since 2010. More information can be
viewed at its corporate website is http://www.kandivehicle.com/.

Safe Harbor Statement
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements of
historical fact included herein are "forward-looking statements." These
forward-looking statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions, involving
known and unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission and
available on the SEC's website (http://www.sec.gov). All forward-looking
statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these risk factors. Other than as
required under the securities laws, the Company does not assume a duty to
update these forward-looking statements.

CONTACT: Kandi Technologies Group, Inc.
         China:
         Email: IR@kandigroup.com
         Phone: 86-579-82239856
        
         U.S.A.:
         Email: IR@kandigroup.com
         Phone: 1-212-551-3610
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