Changan:Assets of CNAG will not be injected

　Chongqing Chana Automobile’s announcement on major issues

Board of directors and all staff of the company promise that the contents of this announcement is accurate and complete, and there are no false records and misleading statements or major omissions in the announcement.

Recently CHINA BUSINESS NEWS and other media reported that CHINA CHANGAN AUTOMOBILE GROUP will be reorganized with China National Aviation Automobile. According to the provision 12.4 of Listing Rules of the Shenzhen Stock Exchange, our stock Chana Automobile (000625) and Chana B (200625) should be halted trade from November 6, 2009 due to our application.

During the suspension period, the company verified the situation to ours controlling shareholder CHINA CHANGAN AUTOMOBILE GROUP and below is our announcement:

China South Industries Group Corporation (hereinafter referred to as the South Group, the company's actual controller) and China National Aviation Corporation (Group) Limited (hereinafter referred to as China National Aviation Group) intend to restructure Chana Automotive.

China National Aviation Group plans to allocate its stake in Changhe Auto, Hafei Auto, Dongandongli, Changhe Suzuki, Dongan Mitsubishi to CHINA CHANGAN AUTOMOBILE GROUP, which is owned by China South Industries Group Corporation In return, China South Industries Group Corporation’s 23% stake in Chana Automotive would be allocated to China National Aviation Group. Then the two groups will reconstruct and a new company which should be new CHINA CHANGAN AUTOMOBILE GROUP Co., Ltd.

As a result, South Group will hold 77% stake of the new company and China National Aviation Group will hold 23%. November 10, 2009, South Group and China National Aviation Group signed a restructuring agreement. However, the agreement between two groups needs to be approved by State-owned Assets Supervision and Administration Commission of the State Council, National Development and Reform Commission, Ministry of Commerce, the SFC and other relevant national authorities.

After the reorganization is completed, CHINA CHANGAN AUTOMOBILE GROUP’s ownership percentage and holding status in Chana Automobile will not change. Considering the assets allocated into CHINA CHANGAN AUTOMOBILE GROUP from China National Aviation Group, there are no relevant programs when the assets will be injected into our company and we promised we will not discuss this matter for at least three months.

China Securities News, Securities Times and Hong Kong Commercial Daily are the media admitted by us to disclose specific information. All information about Chana Automobile is supposed to be published on the above media. Finally we hope investors could do rational investments and pay attention to the risks. .

　　Notice is hereby given

　　Chongqing Chana Automobile Co., Ltd.

　　Board

　　November 11, 2009 (Translator: Qinghua Wade)

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