Kandi Technologies Reports the Company Received Government Financial Subsidies of RMB 32,000 for Each of the Initial 300 EVs Sold

Kandi Technologies, Corp.

today announced that the Company received on February 1, 2012 from Jinhua Municipal Government subsidies of RMB 32,000 (approximately $5,024) for each of the initial 300 EVs sold by the end of 2011.. Jinhua City was elected to be the first pilot city for the new energy vehicles in 2011 by Zhenjiang provincial government. Jinhua municipal and Zhejiang provincial government approved the subsidy program, in which municipal and provincial governments each offer 30 million RMB (approximately $4.76 million), total of 60 million RMB (approximately $9.52 million) subsidies to target the sales of 3,000 pure electric vehicles to Jinhua City-based consumers. Jinhua municipal government began to implement the subsidy program in the beginning of October 2011. The sales of Kandi EVs officially started in the same month and the government set the goal to sell 300 electric vehicles by the end of 2011. Kandi proudly exceeded the goal of having over 300 electric vehicles sold before the year-end. A standard Kandi pure electric vehicle excluding battery is priced at 43,000 RMB (approximately $6,750) before reduction of price to reflect the subsidy amount. According to the approved government subsidy program, for each of the first 500 Kandi pure electric vehicles sold, Kandi will receive a subsidy of 32,000 RMB (approximately $5,024); for each of the next 1,000 Kandi pure electric vehicles sold, Kandi will receive 20,000 RMB (approximately $3,140); and for each of the next 1,500 Kandi pure electric vehicles sold, Kandi will receive 16,000 RMB (approximately $2,512) The subsidy is equal to the price reduction to the buyers of the first 3,000 vehicles.