CHNS -3x Short China

RNS Number:6822T
China Shoto plc
27 March 2007


Press Release                                27 March 2007


                                China Shoto plc
                         ("China Shoto" or "the Group")


                  Proposed extension of manufacturing facility


China Shoto plc (AIM:CHNS), a leading Chinese producer of industrial batteries
and power supply systems, announces that due to increased demand for its power
type VRLA batteries which are used for powering electric bicycles, it has
decided to expand its manufacturing facility at its wholly owned subsidiary
Jiangsu Best Power Supply Co.  The current manufacturing facility will be
expanded by some 15,768 square metres and when construction is completed in June
2007 it will then total 43,768 square metres.  Commercial production utilising
the newly built facility is expected to commence in September 2007 and this
extension will then increase the current production levels of 18,000 units per
day to 24,000.  The cost of expanding the manufacturing facility will be circa
#1.14 million and this will be met from existing resources.


China Shoto expects the electric bicycle market in China will continue to grow.
According to the latest statistics from the Jiangsu Bicycle Association, the
production volume of the electric bicycle manufacturers in 2006 increased by
more than 78% compared to that of 2005.  The Group believes that this growing
demand is generated both by the need for cheap and efficient transportation and
the desire to switch to greener alternatives.


Cao Guifa, Executive Chairman of China Shoto plc, said: "It is extremely
pleasing to see that the Group's strategy of investment into a modern
manufacturing facility, specialising in the production of batteries for the
electric bicycle market, has been the right one.  Demand within China for
electric bicycles continues to grow unabated and this new extension to the
facility that we opened last May will accommodate the anticipated market growth,
allowing us to further increase our market share and maintain our position as
one of the market leaders in this sector."


                                    - 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 / Laura Riascos                  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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