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China BAK to supply lithium-ion batteries used in electric vehicles by Chery Automobile

China BAK Battery, Inc. ("China BAK", the "Company", or "we") (Nasdaq: CBAK), a leading global manufacturer of lithium-based battery cells, today announced that the Company’s Tianjin facility was awarded a new contract by Chery Automobile Co., Ltd. ("Chery"), one of the largest automobile manufacturers in China, to supply high-power batteries used in manufacturing electric cars.

As per the contract, China BAK will supply 110 units of lithium-ion power batteries, which will be used by Chery to manufacture electric vehicles in its December quarter. China BAK will deliver these batteries to Chery in December 2010. This is a repeat order and there is a potential that it will lead to a large scale supply contract.

"We are excited to have the opportunity to work with Chery to deliver world-class electric cars. Our cooperation with Chery is a new milestone in our expansion into the high-technology electric vehicles segment. It demonstrates the high quality of our products and the strong commitment of our team," commented Mr. Xiangqian Li, CEO of China BAK, "With the continual government support and policies, we believe electric vehicles have significant growth potential in China and we are well-positioned to optimally harness this opportunity."

Chery Automobile Co., Ltd. manufactures, markets, and exports passenger vehicles in China. It offers cars, SUVs and MPVs, and SPVs. It also provides engines, transmissions, and other components. Chery Automobile Co., Ltd. was formerly known as Anhui Chery Automobile Co., Ltd. The company was founded in 1997 and is headquartered in Wuhu, China with operations in Asia, the Middle East, Africa, North America, South America, and Australia. At present, Chery possesses a full set of production and R&D units, such as Car Factories, Engine Factories, Transmission Factory, Automotive Engineering and Research Institute, Planning & Design Institute and Testing Technology Center.

China BAK Battery, Inc. (NASDAQ: CBAK) is a leading global manufacturer of lithium-based battery cells. The Company produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers and portable consumer electronics such as digital media devices, portable media players, portable audio players, portable gaming devices, and PDAs. China BAK Battery, Inc.’s production facilities, located in Shenzhen and Tianjin, PRC, cover over three million square feet and have been recently expanded to support the production of larger batteries for various types of vehicles.

www.cheryinternational.com

www.bak.com.cn