Jinpan International Secures Lines of Credit from Bank of Communications

Jinpan International Ltd. JST today announced that it has entered into agreement with the Bank of Communications for two credit lines – a long term credit line for fixed asset investment and a short term credit line for working capital – totaling RMB 350 million (approximately US$ 55 million). The fixed asset credit line is in the amount of RMB 210 million (approximately US$ 33 million) and carries an interest rate of People's Bank of China Bench Mark Rate x 1.05 per annum. Loans made under this credit line must be applied to fixed asset investment at the Company's Guilin facility. The credit line has a term of seven years. Repayment of loan principal is scheduled over a seven year period, from 2013 to 2019. The working capital credit line is in the amount of RMB 140 million (approximately US$ 22 million) and carries an interest rate of People's Bank of China Bench Mark Rate x 1.05 per annum. Loans made under this credit line must be applied to the working capital of the Company's Guilin facility. The credit line has a term of two years. The loan principal must be repaid in full annually.