SORL Auto Parts Inc NASDAQ SORL Investor Presentation

SORL Auto Parts, Inc. NASDAQ: SORL Investor Presentation Roth Capital OC conference Feb 2007

Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation.

Corporate Profile Leading manufacturer of commercial vehicle air brake valves in China • Spin-off from Ruili Group which was established in 1987 • Revenue: $47 M in ‘ 04; $64 M in ‘ 05; $79 M LTM ending Sept ‘ 06. Strong export: $12 M in ‘ 04, $23 M in ’ 05, $31 M LTM in Sept ‘ 06 • Based in Wenzhou City, Zhejiang Province – the “Hub of auto parts” in China • 1295 employees

Production • 15 Production lines in 270, 000 square feet of production space • State-of-the-art testing facilities • Advanced equipment from US, Korea and Taiwan • ISO/TS 16949 Quality Management System, OHSAS 18001 System, and ISO 14001 Environmental Management System

Major Products • 40 categories of air brake valves in 800 specifications Parking Brake mainly for heavy vehicles Valves • All products export-ready and global systems certified Foot Brake Valves Clutch Servos • Aggressive focus on new product R&D in cooperation with leading automotive engineering institutes • State-of-the-art testing and production facilities with advanced equipment from US, Korea and Taiwan

Research & Development • 4 patents, 8 pending patent applications, other proprietary technologies • 44 technical staff, including 32 engineers or senior engineers • Partnerships with leading automotive engineering institutes: – – Beijing Jiaotong University Tsinghua University E-Technology Co. , Ltd Zhejiang University Huazhong University of Science and Technology Spring Brake Chambers Four-circuit Protection Valves Air Dryers

Balanced Revenue Sources 2005 Export Revenues Breakdown OEM 32% Replacement 32% Asia 42% Americas 25% Export 36% Australia 3% Europe 15% Africa 15% 2005 Rev OEM $21 M : : Aftermarket Replacement $20 M : : Export $23 M

Strategic Long Term Relationships Local OEMs dominate the market with 90% share • Chinese made heavy duty trucks are more durable and less expensive comparing with imported trucks • Imports have a poor after market and low maintenance and repair skill at local garages Strong relationships with all of the largest manufacturers in China • OEM – currently has 39 customers in China • Aftermarket – large, national, well-established distribution network • International / Exports – growing quickly with Tata, India’s largest automobile company ($5. 5 billion in revenue), as a leading customer in India

Customers: OEM SORL is the leading supplier to the dominant truck manufacturers in China Auto Makers FAW Qingdao FAW Jiefang Changchun Dongfeng Motors Liuzhou Special Auto China Nat’l Heavy Duty Truck Group Heavy Duty Trucks Output (unit) 55, 970 71, 797 14, 000 45, 000 Market Share in China 23. 7% 30% 5. 9% 18% 50% 5% % Valves Supplied by SORL 40% 22% Two largest customers, FAW and Dongfeng, accounted for 54% of the Chinese total heavy duty truck sales in 2005 FAW Qingdao and FAW Jiefang Changchun are the only two heavy truck makers within FAW family

Customers: OEM SORL’s customers continue to dominate TOP 10 heavy truck maker (‘ 000 units) Rank Group Heavy truck 1 Daimler. Chrysler 244 2 Volvo Group 170 3 Paccar 125 4 IVECO Group 76 5 Dongfeng Motor 68 6 Navistar 62 7 FAW Group 56 8 MAN Group 54 9 Scania 53 10 Tata Group 50 Source: JD Power 2005 , UBS equity research, CAICA Big 5 takes 84% China Market

Customers: Aftermarket • $12. 2 mm in revenue in ’ 04 to $20. 2 mm in ’ 05 • 26% of revenue in 2004 to 32% of revenue in 2005 • 27 authorized distributors and over 800 sub-distributors

Customers: Aftermarket Success factors to win in the intensified aftermarket competition Established Nationwide Sales Network Close Relationship with Big OEM Manufacturers Performance. Cost Competitiveness Warranty and Reliability Timely Delivery Efficient Customer Services Other Small Manufacturers No No Low Poor SORL Auto Parts Yes High Good

Customers: International • $12. 6 M in revenue in ’ 04 to $23. 4 M in ’ 05 • 27% of revenue in 2004 to 36% of revenue in 2005 • Mostly replacement but beginning to explore OEM opportunities (TATA Motors) • 3 authorized sales centers (Australia, UAE, and USA)

Customers: International Top 7 export customers continue to show confidence in SORL product quality 4, 500, 000 2004 2005 4, 000 3, 500, 000 3, 000 2, 500, 000 2, 000 1, 500, 000 1, 000 500, 000 0 GD Auto MICO FP MITA POLMO Air-Fren KTC Country: UAE South Africa Canada Taiwan South Africa Spain USA Yo. Y Increase: 92% 77% 93% 385% 140% 165% 10%

Significant Growth Opportunity Chinese Auto Parts Export • China’s worldwide auto parts sales totaled $55 billion in 2004 and are expected to reach $187. 5 billion by 2010, with exports from China expected to grow at an annual growth rate of 50% Truck market: Infrastructure and regulation in favor of continuous growth • Truck prices are less sensitive than passenger vehicles and hence depend more on macroeconomic changes such as environmental and public policy • Domestic brands have over 50% price advantage over imported heavy trucks • Highway expansion increased by 38% during 2006 -2010 The Ministry of Construction plans to complete its massive network of arterial national highways by 2008 prior to Beijing Olympics • Trucks’ increasing role in solving logistic bottleneck in China • Jan-Oct 06, China exported 128, 000 trucks, $788 M, 50% Yo. Y rev growth; China exported 21, 800 buses, $427 M, 150% Yo. Y rev growth Source: Citigroup Equity Research, CAAM, Frost & Sullivan Research - Sept 05, Feb, 06, Credit Suisse Research, Jan 06, mgmt estimate

Attractive Export Opportunity China Auto Parts Annual Exports & Imports USD Billion China commercial vehicle Annual Exports ‘ 05 Export Markets by Revenue 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. • • Syria Algeria Belgium Iran Sudan Russia Vietnam Kazakhstan Ukraine Saudi Arabia Cuba The current global market for commercial vehicle air brake valves is over $5 billion Growth of aftermarket air brake valves market is approximately 15% Global purchasing trend is moving to China SORL’s exports in 2006 were 40% of total revenue (as of September 30), 36% in 2005, 27% in 2004, and 18% in 2003 Source: China Automotive Industry Information Network, Asimco Technologies, CAAM, Wall Street Journal August 2006

Growth Strategy OEM: • Enhance brand recognition and develop relationships with other truck manufacturers Export: • Strengthen presence overseas by establishing relationships with additional authorized distributors • Penetrate the aftermarket segment to gain name and quality recognition and then enter the International OEM market M&A and JV: • Over 1, 400 auto parts companies located in the Wenzhou area can become potential M&A targets or JV partners R&D: • Invest in next generation valve technology • Continue partnerships with leading automotive engineering institutes Cost Control: • Reduce material and energy consumption; strict waste measurement • Maintain high standard quality control

Significant Revenue and Profit Growth Revenue Net Income ($millions) 64. 2 5. 0 4. 8 46. 8 33. 1 1. 2 2003 2004 2005 2003 • 39% CAGR of sales during 2003 -2005 • 107% CAGR of net income during 2003 -2005 2004 2005

Significant Revenue and Profit Growth Revenue Net Income / EPS ($millions) ($millions and dollar) 79. 2 6. 4 5. 7 60. 8 4. 4 45. 8 0. 33 9 month ‘ 05 9 month ‘ 06 * Ended September 30, 2006. LTM* 0. 43 9 month ‘ 05 9 month ‘ 06 0. 47 LTM*

Strong Balance Sheet (US$, in thousands) Sept 30, 2006 Dec 31, 2005 Cash $ 1, 191 $ Receivables $31, 741 $26, 828 Inventories $ 2, 298 $ 2, 513 Total Assets $46, 702 $39, 301 Total Debt $10, 874 $16, 027 Total Current Liabilities $21, 688 $21, 580 Minority Interest $ 2, 419 $ 1, 736 Stockholders’ Equity $22, 614 $15, 984 961 • December 1 st 2006, SORL completed a follow-on public offering and raised $32. 7 M.

Management Team Xiaoping Zhang, Chairman and CEO Xiaofeng Zhang, COO • Co-founder of Ruili Group – General Manager • President of the Ruian Auto Parts Association in Wenzhou, Zhejiang Province • Vice President of China Federation of Industry and Commerce Auto & Motorbike Parts Chamber of Commerce Zongyun Zhou, CFO • Certified Public Accountant in China • Chief Financial Officer of Shanghai Huhao Auto Parts Manufacturing Company Limited, a joint venture between the Ruili Group and Shanghai Auto Group, 2002 - 2004 • Spearheads SORL’s sales and marketing effort David He, Senior Manager of Investor Relations • Illinois CPA and awarded CFA designation • MBA in Finance and MS in Accountancy from the University of Illinois at Urbana-Champaign • Senior Relationship Manager in corporate banking with Credit Agricole Indosuez in Shanghai

Investment Highlights Market Potential • China is the world’s 2 nd largest auto market and 3 rd largest in auto production • Export potential: Current global market for commercial vehicle air brake valves is over $5 bn • Opportunities for product line expansion and complementary acquisitions Industry Leadership • SORL holds a leading market position in the following products segments in China – OEM air brake valve segment – Replacement air brake segment Solid Operating History • Strong financials: 37% overall revenue increase year over year • Successful expansion of export sales by 83% from 2004 to 2005 ($12. 6 mm to $23. 4 mm) with high-quality products that meet global ISO certifications • Sales to top seven international customers grew an average of 92% in 2005 • Strong brand equity – SORL is one of the top 10 most recognized brand names in the automotive parts industry in China Source: CAAM, Management estimate

SORL Auto Parts, Inc. NASDAQ: SORL David Ming He Senior Manager, Capital Market Phone: +86 (577) 6581 7720 Fax: +86 (577) 6581 7733 Email: davidhe@sorl. com. cn Web: www. sorl. cn