U.S. Slowdown Heavily Impacts Kandi's First Quarter Results; Company Targets Second Half Turnaround With Planned July

JINHUA, CHINA, May 18 (MARKET WIRE) --
Kandi Technologies, Corp. (NASDAQ: KNDI), one of China's leading
designers, manufacturers and exporters of all terrain vehicles (ATVs),
utility vehicles (UTVs), go-karts, motorcycles and, most recently,
battery powered super-mini automobiles, today reported a sharp drop in
first quarter results due to prevailing economic conditions worldwide and
especially in the U.S. which traditionally has accounted for
approximately 65% to 70% of the Company's sales.

In the first quarter ended March 31, 2009, the Company said that product
sales were affected across the board by the worldwide consumer pullback.
Sales in the quarter were $4,005,904, a decline of 58% compared with
$9,487,285 in the same period last year. This produced a loss in the
quarter of $582,899 or $0.03 per share, compared with net income in the
first quarter of 2008 of $1,110,176, or $0.06 per share.

According to the Company, vehicle sales that were hardest hit by
prevailing economic conditions in the U.S. were recreational go-karts and
ATVs. In prior periods these vehicles were the Company's biggest sellers.

Newest Products A Bright Spot

Replacing go-karts during the quarter as the Company's largest selling
vehicle was Kandi's latest model UTV which is a "working" vehicle for
farmers and ranchers. To some extent, UTVs are a seasonal product that the
Company believes will generate increased sales in the warmer months ahead.

While the economic environment dropped sales below anticipated levels,
there was a positive response as well to the Company's gas powered three
wheeled two-seater motorcycle that was introduced in the quarter. An
enthusiastic response also was accorded to the first shipload of the
battery powered COCO convertibles delivered to the U.S. of which about 170
were sold in the period. These, too, are expected to see sales growth this
spring and summer.

Shifting Sales to China With a Focus on the Electric COCO Hard Top Backed
By Government Subsidies

Mr. Hu Xiaoming, Kandi's Chairman and CEO, commented: "While we continue
to keep our marketing pipeline open in the U.S., we expect sales there --
especially for recreational vehicles -- to continue to be soft for at
least the near term. As such, our main focus has been on efforts to shift
50% of our sales this year to China where conditions are much more
favorable. In large measure, this is due to the well publicized
government efforts to increase domestic automobile sales in China,
especially those powered by batteries."

"In this environment, we believe our new electric hardtop version of the
Kandi COCO two-seater will prove very attractive to Chinese consumers.
Consequently, we have been moving ahead to obtain the necessary licenses
for selling the vehicle in China and gearing up our manufacturing
accordingly," Mr. Hu said.

The Company also has been focused on building relationships with 4S shops
(car dealers) in Hangzou, a nearby city of 6.5 million people, that is
among those named by the government as a test market for direct government
subsidies of consumers for the purchase of electric automobiles. By the
end of June, Kandi expects to receive the licenses required by the
government following testing of the car that has taken place since
November 2008.

COCO Sales Goal: 5,000 to 7,000 Vehicles in China by Year-End

"Upon obtaining the necessary approvals from the Chinese government, the
Company will be ready to launch sales of the COCO in China almost
immediately," Mr. Hu stated. He added, "Our goal is to achieve sales of
5,000 to 7,000 cars in China by year end supported by government subsidies
to individual consumers for renewable energy vehicles of up to 60,000 RMB
($8,792) each, or slightly more than the anticipated selling price of our
vehicles. In the U.S., while we are excited by the sales growth potential
of the COCO convertible, at the moment we are not making any sales
projections given the still unclear economic situation."

The Company said that it also is prepared to launch sales of its UTVs in
China as soon as anticipated government subsidies for this product are in
place. However, it does not believe these subsidies will be introduced
until some time next year.

Mr. Hu cautioned, "Following the expansion of our manufacturing facilities
last year and the unplanned slowdown in sales, one possible constraint on
being able to handle the strong demand that may develop for our products
is our capital position. However, we remain confident that we can obtain
locally the loans we may need, particularly given the recent easing of
credit in the Chinese banking sector."

Cautious Outlook for the Year: Higher Sales

Commenting on the full year outlook, Mr. Hu stated, "We continue to be
cautiously optimistic about the full year, but think it is too early to
make more specific estimates until it is clearer that we have seen the
bottom of the recession, particularly in the U.S. For now, I believe I can
say guardedly that our new thrust in China should be the main basis for
higher sales in 2009 than we achieved in the prior year. Further, we will
be working hard to achieve this result with a lineup of very exciting
products in China and the rest of the world. In addition to our electric
powered COCO, where we think we have a jump start on other competitors
with a beautifully designed, well engineered product we can mass produce,
we believe our exciting three-wheeler should appeal to many U.S.
commuters, and we are also quite optimistic about our higher powered UTVs
aimed at the agricultural market in China and around the world."

About the Company

In 2008, Kandi Technologies, Corp. (NASDAQ: KNDI) generated nearly $41
million in sales and profits of about $5 million, principally from its
core All Terrain Recreational Vehicle (ATRV) businesses. The Company
ranks as one of the largest manufacturers and exporters of go-karts in
China, making it a world leader in the production of this increasingly
popular recreational vehicle. It also ranks among the leading
manufacturers in China of all terrain vehicles (ATVs). A more recent
Company focus has been on specialized utility vehicles (UTVs), especially
for agricultural purposes. The Company also is launching a second
generation high mileage, two seater three-wheeled motorcycle, and a
highly economical, beautifully designed, super mini car -- the COCO --
for casual, neighborhood driving. Kandi believes that battery powered,
electric super minis will become the Company's largest revenue and profit
generator. While nearly all Kandi products are exported, including more
than 65% to the U.S., the Company is intensifying efforts to shift up to
50% of its sales to China where markets have continued to be strong.

The Company's products can be viewed at http://www.chinakandi.com.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this
Press Release are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties, which may cause our actual results in future periods to
differ materially from forecasted results. These risks and uncertainties
include, among other things, product demand, market competition, and risks
inherent in our operations. These and other risks are described in our
filings with the Securities and Exchange Commission.

KANDI TECHNOLOGIES, CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND
COMPREHENSIVE (LOSS) INCOME
(UNAUDITED)

Three Months Ended
-------------------------
March 31, March 31,
2009 2008
----------- -----------

REVENUES, NET $ 4,005,904 $ 9,487,285

COST OF GOODS SOLD (3,025,722) (7,305,277)
----------- -----------

GROSS PROFIT 980,182 2,182,008
----------- -----------

Research and development 526,201 46,610
Selling and distribution expenses 86,184 215,776
General and administrative expenses 567,815 279,120
Stock based compensation expense 210,117 -
----------- -----------
(LOSS) INCOME FROM OPERATIONS (410,135) 1,640,502

Interest expense, net (309,304) (615,540)
Government grants 99,053 23,381
Other income, net 56,214 21,711
----------- -----------
(LOSS) INCOME FROM OPERATIONS BEFORE
INCOME TAXES (564,172) 1,070,054

INCOME TAX (EXPENSE) BENEFIT (18,727) 39,965
----------- -----------

(LOSS) INCOME FROM CONTINUING OPERATIONS (582,899) 1,110,019
----------- -----------

DISCONTINUED OPERATION

Income from discontinued operation - 157
----------- -----------

NET GAIN FROM DISCONTINUED OPERATION - 157
----------- -----------

KANDI TECHNOLOGIES, CORP.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND
COMPREHENSIVE (LOSS) INCOME
(UNAUDITED)

Three Months Ended
-------------------------
March 31, March 31,
2009 2008
----------- -----------

NET (LOSS) INCOME (582,899) 1,110,176

OTHER COMPREHENSIVE INCOME
Foreign currency translation 12,298 46,440
----------- -----------
COMPREHENSIVE (LOSS) INCOME (570,601) 1,156,616
=========== ===========

WEIGHTED AVERAGE SHARES OUTSTANDING BASIC
AND DILUTED 19,961,000 19,961,000
=========== ===========

NET (LOSS) INCOME PER SHARE FROM CONTINUING
OPERATIONS, BASIC AND DILUTED $ (0.03) $ 0.06
=========== ===========

NET (LOSS) INCOME PER SHARE, BASIC AND DILUTED $ (0.03) $ 0.06
=========== ===========

Contact:
Kandi Technologies, Corp.
Hu Xiaoming
President and CEO
86-579 83906856

US Investors

Focus Asia Partners
Robert Agriogianis
Tel: 973-845-6642
Fax: 973-845-6649

Press

Ken Donenfeld
donfgroup@aol.com
Tel: 212-425-5700
Fax: 646-381-9727

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