China Yuchai International Introduces Hybrid Engine to Focus on Chinese Bus Market

China Yuchai International Limited (NYSE: CYD; "China Yuchai" or the "Company"), the leading manufacturer and distributor of diesel engines in China, today announced its latest R&D innovation -- a hybrid ISG engine specifically designed for urban transportation buses, and exhibited at the recent 4th China-ASEAN Expo.

The hybrid engine, which has been widely recognized as a major technological development for energy conservation and emission reduction, is becoming a general trend for global automotive engine design and technology advancement. In response to generally low speeds, heavy loading and frequent stops in Chinese urban transportation markets, Yuchai has developed China's first hybrid engine system based on single-axle parallel ISG technology. This new technology consists of an electrically-controlled diesel engine, 4 quadrant motor and control system, power source management system, high-power safety system, power-train control system and vehicle communication system. The entire system is self-developed with intellectual property (IP) protected technology. The hybrid engine research program was initiated by the Yuchai Institute of Engineering and China Jiaotong University jointly in early 2005.

Dr. Bing Zuo, Vice Principal of Yuchai Institute of Engineering, said, "Our ISG Hybrid Power Technology has passed its initial in-vehicle functional tests. This diesel-electric hybrid system is the first innovation we developed for the urban bus power-train market. Our 4-cylinder hybrid engine can generate similar acceleration, but outperform the traditional 6-cylinder engine by reducing fuel consumption by nearly 20%."

About China Yuchai International

China Yuchai International Limited, through its subsidiary, Guangxi Yuchai Machinery Company Limited ("Yuchai"), engages in the manufacture, assembly, and sale of a wide array of light-duty, medium-sized and heavy-duty diesel engines for construction equipment, trucks, buses, and cars in China. Yuchai also produces diesel power generators, which are primarily used in the construction and mining industries. With over 30 regional sales offices and 460 authorized customer service centers, the Company distributes its diesel engines directly to auto OEMs and retailers and provides maintenance and retrofitting services throughout China. Founded in 1951, Yuchai has established a reputable brand name, strong research & development team and significant market share in China with high-quality products and reliable after-sales support. In 2006, Yuchai sold approximately 284,000 diesel engines and was consistently ranked No. 1 in unit sales by China Association of Automobile Manufacturers. The Company's headquarters are based in Singapore, Singapore. For more information, please visit http://www.hlcorp.com.sg/cyi .

About China-ASEAN Expo

Initiated by Wen Jiabao, the Premier of China, China-ASESN Expo was organized to enhance China-ASEAN comprehensive economic cooperation, promote the building of China-ASEAN Free Trade Area, and create mutual benefits and common prosperity. The China-ASEAN Expo focuses on regional economic and trade cooperation and provides tremendous opportunities for the business communities within the region. China-ASEAN Expo was welcomed by the ASEAN leaders and attracted many top companies from Brunei, Cambodia, Indonesia, Lao, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, Hong Kong and China.

The 4th China-ASEAN Expo and the 4th China-ASEAN Business and Investment Summit were held on Oct. 28-31, 2007 in Nanning, Guangxi Province, China.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and, condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. The Company specifically disclaims any obligation to update the forward-looking information in the future.

For more information, please contact:
Kevin Theiss / Dixon Chen
The Global Consulting Group
Tel: +1-646-284-9409