CHNS -3x Short China

RNS Number:3386E
China Shoto plc
09 June 2006


Press Release                                9 June 2006


                                China Shoto plc

                        ("China Shoto" or "the Company")


                         Placing to raise #5.0 million


China Shoto plc (AIM:CHNS), a leading Chinese producer of industrial batteries
and power supply systems, is pleased to announce that it has conditionally
placed 3,143,750 new ordinary shares of 10 pence each in the capital of the
Company ("Ordinary Shares") at a price of 160 pence per share, raising a total
of #5.0 million (before expenses) for the Company.  Application has been made to
AIM for the new shares to be admitted to trading, which is expected to commence
on 12 June 2006.


The proceeds of the placing will be used to: increase AGM battery production
capacity as well as to provide working capital for the Group; extend the current
AGM product portfolio through an investment in Zhenghe Power Supply Company;
purchase the power type battery business of Jiangsu Electric Wire and Cable Co.
Ltd; and also to increase the Company's current 51% stake in Beijing Full Three
Dimension Power Engineering Co., Ltd ("FTD").


Commenting on the Placing, Cao Guifa, Executive Chairman of China Shoto plc,
said: "We are delighted with the response and support shown by both new and
existing investors.  The funds raised will allow China Shoto to undertake the
next stage of its business strategy.  The first quarter of this year has shown
strong growth compared to the same period in 2005 with revenues up by 170% and
profit after tax showing an increase of 133%.  As such we look forward to the
future with considerable optimism."


The Placing has been undertaken by Seymour Pierce Limited ("Seymour Pierce").
The new ordinary shares will rank pari passu in all respects with the existing
Ordinary Shares in issue.


                                    - Ends -


For further information:

China Shoto plc
Cao Guifa, Executive Chairman                          Tel: +44 (0) 20 7398 7700
                                                              www.chinashoto.com

Seymour Pierce Limited
Stuart Lane / John Depasquale                          Tel: +44 (0) 20 7107 8000
jdp@seymourpierce.com                                      www.seymourpierce.com


Media enquiries:
Abchurch
Henry Harrison-Topham                                  Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com                               www.abchurch-group.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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