YUCHAI Group (Guangxi, China) announces the establishment of YC Machinery & Equipment Inc. for the North American distribution of YUCHAI brand construction, materials handling and agricultural equipment. YUCHAI Group is the largest manufacturer of compact construction machinery in China. It is also a major manufacturer of industrial forklifts and diesel engines.

Initial product offering is a complete line of YUCHAI excavators ranging from 1.5 ton to 22.5 ton weight class models. YUCHAI has been manufacturing excavators since 1990, for the domestic and export markets.

The latest generation of YUCHAI excavators incorporate advanced technologies and components commonly found in North American products. Subsequent offerings will include a line of industrial forklifts, compact dozers, generator sets, skid steer loaders and diesel engines. YUCHAI group is traded on the NYSE under the symbol CYD.

Ms. Jianhong Li, the President of YC Machinery, will be responsible for North American market development. For additional information on YUCHAI product offerings, please visit the website at www.ycexcavator.com.