Kandi Technologies Reports 2007 Full Year Revenues Increased Nearly 140% to $34.7 Million, While Net Income Grew More Than 366% to Approximately $5.03 Million, Slightly Exceeding the Company's Forecast

Kandi Technologies, Corp. (NASDAQ: KNDI), 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, today announced record results for sales and net income in 2007.

For the year ended Dec 31, 2007, the Company reported net income of $5,029,096, slightly exceeding its guidance, compared with $1,079,155 in 2006, an increase of 366%. On a per share basis, the Company reported EPS of $0.31 in 2007, compared with $0.10 per share in the prior year.

Full year revenues in 2007, although slightly lower than anticipated, grew 139.6% to $34,702,168, compared to revenues of $14,480,836 reported in 2006. The Company attributed the record revenues primarily to continued strong sales of its sports vehicles and noted that, for the first time in its history, the total number of vehicles sold by the Company exceeded 50,000. In addition, there was a growing contribution from sales in the U.S., which experienced a large increase in the fourth quarter.

The Company added that higher sales coupled with a focus on cost management, and sourcing and operating efficiencies were the key contributors to its excellent net income results. Further, the Company was able to achieve cost management goals despite significantly increased sales and marketing expense, including increased promotion costs to launch new products and increase market awareness of the Company's brand and products.

Mr. Hu Xiaoming, president and CEO of Kandi, commented, "Not the least of our recent accomplishments was our listing on NASDAQ on March 18, 2008. I am very pleased we have been able to follow this with a very positive results announcement, demonstrating the strength and continuing growth potential of our business."

Products

During the year ended December 31, 2007, the Company said it continued to develop and introduced a variety of new models of vehicles. To date, the Company has produced 25 go-kart models with power displacement from 90 cc to 1000 cc. Additionally, the Company has produced a variety of special purpose vehicles and ATVs. It expects that its super mini-car, while still in a pre-full production phase, will be selling in the US later in the year, before sales are expanded to other countries.

The Company said that, in 2007, ATVs were the biggest contributor to its revenues, nearly matched by the contribution by the sales of go-karts. There also was an increased contribution from the Company's high margin utility vehicles, and while mini pick-ups also contributed to 2007 sales, the manufacture of these vehicles has been discontinued in favor of production of the Company's super-mini autos.

Outlook

Looking ahead to 2008, Mr. Hu commented: "In the early months of the new year we retain a very positive outlook for continuing above average growth, with further improved contributions anticipated from the sales of our ATVs and UTVs, while we continue to make progress on the development and sales later in the year of our low-priced, energy saving super-minis, We also hope to make further progress in applying more new technology and research and development efforts to our go-karts and other sports vehicles, with an aim of eventually achieving annual production capacity of 30,000 go-karts, to meet international demand and to serve our domestic market in China. While building sales in the particular markets we have targeted, we also will maintain a focus on cost containment, particularly with an eye toward overcoming the anticipated increased taxes that we began to experience in 2007. As the year progresses, we hope to provide more details on our expectations."

About the Company

Kandi Technologies, Corp. is a PRC (China)-based vehicle machinery producer, concentrating on three areas of small vehicle production: go-karts, special purpose vehicles and casual purpose vehicles. At present, it is among the leading producers of go-karts in the world, with an estimated 15% share of China's global export market and a goal of doubling this share, in large part by becoming the leading producer of this increasingly popular recreational product in China. Focusing on the country's rapid economic development, the Company also sees an increasing need for transportation vehicles for specific purposes, in particular, mini-size pesticide spraying vehicles and mini-service vehicles. Additionally, the Company produces a wide and growing range of All Terrain Vehicles (ATVs) which it believes represent the highest quality vehicles of this type in China, aimed at the export market as well as the rapidly growing market in the PRC. The Company also is focused on the development of fashionable, energy saving mini-cars. It has produced mini-cars that have completed the trial stage and is now preparing to start mass production. It expects to begin to export these cars to the American market, followed by sales in China when the domestic market is more mature. Kandi is a US full reporting company whose shares are traded under the symbol "KNDI."