China BAK Announces Plans for New Facility to Manufacture New Products

China BAK Battery, Inc. ("China BAK", or "BAK") (Nasdaq: CBAK), today announced plans to construct a new facility that will focus on product development and manufacture of an advanced lithium ion battery cell product line. The facility will be owned and operated by BAK's new indirect wholly-owned Chinese subsidiary.

The new subsidiary, BAK International (Tianjin) Co., Ltd., will be located in Tianjin Beichen Hi-Tech Industrial Park. Tianjin is a coastal city in northeast China. This prestigious industrial park is a business development project of the State Council of The People's Republic of China whereby the Council provides government policy incentives to private industry. BAK believes that the location offers several advantages including ample human resources, excellent shipping and logistics, proximity to customers and vendors and available manufacturing support resources. The project also affords China BAK certain tax abatements.

The new battery cells will provide higher energy density and power, longer life cycle and shorter charge times as compared to other types of lithium- based batteries. The initial customer development programs will focus on applications in Light Electric Vehicles, or LEVs, and Uninterruptible Power Supply. Among the most prevalent products in the LEV space is the electric bicycle. The planned products from this new facility also have potential application in hybrid electric vehicles.

The timing of the construction of the new facility will be dependent on the progress of our customer development programs. Historically, China BAK has endeavored to add manufacturing infrastructure as sales opportunities become clearly defined. The earliest potential shipment from the newly planned facility is fiscal 2008, and will become more certain as business development activities, and construction of the Tianjin facility progress.

China BAK has successfully commercialized new product lines due in large part, it believes, to its R&D capabilities and experienced sales organization focused on new business development. In fiscal 2006, China BAK introduced a new line cylindrical battery cells for use in laptop computers and scaled its lithium polymer sales for mobile electrical devices significantly. BAK believes it is now in an ideal position to expand its product lines into these other emerging applications in order to capitalize on additional market opportunities.

"The formation of the BAK International (Tianjin) Co., Ltd. reflects the continuing evolution and development of China BAK's battery cell business, and we look forward to introducing many more high quality and innovative products in the future," commented Xiangqian Li, the President and Chief Executive Officer of China BAK. "Our new line of battery cells, which we expect to manufacture once our new Tianjin facility is completed, is a logical extension of our current product mix, it expands the market applications we serve and should strengthen our position as the worldwide market leader in lithium-based batteries cells."

About China BAK Battery Inc.

China BAK Battery, Inc. is one of the largest manufacturers of lithium- based battery cells in China and in the world, as measured by production output. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers, cordless power tools and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices and personal digital assistants, or PDAs. China BAK's 1.9 million square feet facilities are located in Shenzhen, PRC, and have been recently expanded to produce new products. China BAK is the largest manufacturer of lithium-ion battery cells for China's cellular phone replacement battery market.

Safe Harbor Statement

This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of China BAK Battery, Inc. and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: risks related to China BAK's business and risks related to operating in China. Please refer to China BAK's Annual Report on Form 10-K for the fiscal year ended September 30, 2006, filed with the U.S. Securities and Exchange Commission, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward- looking statements. China BAK's actual results could differ materially from those contained in the forward-looking statements. China BAK undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

For more information, please contact:

Company Contact:

Jim Groh

Tel: +1-843-277-0024

Email: jim@BAKbattery.com

Or

Investor Relations Contacts:

Crocker Coulson

Tel: +1-646-213-1915

Email: crocker.coulson@ccgir.com

Elaine Ketchmere

Tel: +1-310-231-8600 ext. 119

Email: elaine.Ketchmere@ccgir.com

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