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Says Growing Demand for Go-Karts Also Spurs Need for Expanded Facilities

JINHUA, ZHEJIANG PROVINCE, CHINA--(MARKET WIRE)--Apr 22, 2008 -- Kandi Technologies, Corp. ("Kandi") (OTC BB:KNDI.OB - News), an emerging US traded PRC-based designer, engineer and manufacturer of small vehicles, including ATVs, beach vehicles, golf carts and approximately 15% of China's global export market of go-karts, announced today that to help facilitate the Company's rapid expansion, it expects to close the acquisition by June 30, 2008 of an adjacent 200 acres of land in the Zhejiang Province, which includes a newly built 24,560 square meter production facility and an all terrain vehicle (ATV) testing center.

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Further describing the transaction, the Company said its wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd., will acquire for $12.3 million all of the issued and outstanding shares of Kandi Special Vehicles Co, Ltd, (KSV), which owns the land and facilities, through an agreement with KSV's two sole shareholders, Mr. Lang Jianfeng and Mr. Hu Xintao. Upon completion of the transaction, KSV will become a wholly owned subsidiary of the Company.

Mr. Hu Xiaoming, CEO and Chairman of the Board of Kandi, stated, "The rapid growth of our Company, especially as reflected in the increased demand for go-karts, has made the addition of special-purpose go-kart production facilities a top priority. At the same time, as we move from the trial production in 2007 of our super-mini cars to mass production in 2008, we also require the capacity to accommodate our growth plans for this exciting new product line which we see as a big part of our future."

He added, "We will be able to meet these expansion needs with this acquisition, and by July 1, 2008, we expect to begin to shift all ATV, UTV and go-kart production to the new facility and to utilize our current facilities for ramping up production of our super-mini cars."