Kandi Returns to Profitability in Second Quarter; Maintains Forecast of Stronger Second Half With Expected Boost From

JINHUA, CHINA, Aug 17 (MARKET WIRE) --
Kandi Technologies, Corp. (NASDAQ: KNDI), an established China-based
leader in the design and manufacture of all terrain recreational
vehicles, and the designer and manufacturer of the COCO all electric
super mini auto, today announced results for its second quarter and first
half ended June 30, 2009.

The Company said that results in the quarter continued to be heavily
impacted by worldwide economic conditions, particularly in the U.S., which
traditionally has accounted for the majority of Kandi's sales.
Consequently, sales and net income in the quarter and first half were well
below the comparable periods last year. Nevertheless, through careful cost
management, the Company reported it was able to achieve a slight profit in
the second quarter while continuing to invest in new products. In
particular, Kandi said it is awaiting what it believes will be final
approvals from Chinese authorities to launch sales in China of its battery
powered COCO super mini car, which the Company believes will contribute
significantly to a second half turnaround.

A Small Profit

The Company reported that revenues in the second quarter of 2009 were
$5,481,551 compared with $12,424,373 in the same period last year, as
sales in particular of the Company's ATRVs were impacted by the
recession. By adjusting costs to align with recession impacted sales, the
Company said it achieved net income of $226,373 or $0.01 per share in the
period, compared with net income of $2,436,451 or $0.12 per share in the
same period last year.

While revenues in the quarter and first six months of 2009 sharply
declined, the expenditure for R&D increased 318% through the first six
months and more than 159% in the quarter. This is a reflection of the
Company's commitment to building a strong sales presence in China, not
only with its battery powered car, but also with other new products such
as its four-wheel drive "Farmer's Pickup" aimed at the Chinese
agricultural market and expected to be launched by year end.

Through the first half of 2009, revenues were $9,487,455, down 56.4% from
$21,753,075 in the same period a year earlier. Reflecting the first
quarter loss reported by the Company, the loss in the first six months of
2009 was $(356,525), or $(0.02) per share, compared with net income in the
first half of 2008 of $3,510,413, or $0.18 per share.

Focus Is On COCO Launch In China

Mr. Xiaoming Hu, Chairman and CEO of the Company, stated, "As we are
operating in a very difficult environment, we were pleased to have stemmed
our losses, while also making substantial progress in our plan to achieve
at least 50% of our sales this year in China, where economic conditions
currently are much more favorable than in the rest of the world. Our main
focus has been on developing our new battery powered COCO super mini car,
for which we have established a production facility ready to roll out cars
for the Chinese market as soon as we attain final governmental approval.
We believe that following months of successful testing this approval is
imminent."

He continued, "While awaiting final approval, we have been quite busy
preparing dealers and the Chinese market for the COCO which, in addition
to its striking appearance, has numerous features we think will appeal to
cost conscious Chinese commuters. While the amount of the announced
government grant to individual COCO purchasers has not been finalized, we
expect it will be substantial -- making the COCO especially affordable --
and, of course, it will be running on batteries rather than gasoline."

Government Sales Support Sales Targets

"Recently," Mr. Hu added, "we announced that we have been targeting sales
of our electric cars not only at individual consumers in China, but also
at government agencies. We have signed letters of intent with two Postal
Service branches for what we believe will be fleet purchases, a program
that could be replicated nationally. This is a program we are continuing
to pursue and is a key factor underlying our previously announced full
year sales projections."

The Company said it also continues to focus on other new products it
believes are potential strong sellers in the U.S., even in the current
environment. Among them is a new high mileage, two-seater, three-wheeled
motorcycle that achieved some success in the second quarter and is
expected to attract additional consumers in the period ahead.

"During the quarter," Mr. Hu said, "we also recorded some initial sales in
the U.S. of our electric COCO convertible and are continuing to ship the
vehicle based on demand from dealers there."

Outlook

"Looking ahead," Mr. Hu said, "we are very excited about second half
prospects once the COCO is launched in China. If successful, we believe we
will be the first Company to mass produce an electric vehicle, setting the
stage for what we think will be sustainable growth in years to come with a
product that meets the needs of the times. We see great opportunity in
China, but by no means will abandon our sales efforts worldwide, where
Kandi's products have become increasingly well known for their
performance, high quality and curb appeal."

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) business. 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 neighborhood driving and
commuting. Kandi believes that battery powered, electric super mini cars
will become the Company's largest revenue and profit generator. While
nearly all Kandi products historically have been exported, including more
than 65% to the U.S., the Company is intensifying efforts to shift 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 INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS)
(UNAUDITED)

Three Months Ended Six Months Ended
------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
----------- ------------ ----------- --------------

REVENUES, NET $ 5,481,551 $ 12,424,373 $ 9,487,455 $ 21,753,075

COST OF GOODS SOLD (4,037,629) (9,139,131) (7,063,351) (16,316,178)
----------- ------------ ----------- --------------

GROSS PROFIT 1,443,922 3,285,242 2,424,104 5,436,897
----------- ------------ ----------- --------------
Research and
development 580,772 224,146 1,106,973 264,816
Selling and
distribution
expenses 97,810 180,596 183,994 409,102
General and
administrative
expenses 363,103 432,238 930,918 704,682
Stock based
compensation
expense 315,175 - 525,292 -
----------- ------------ ----------- --------------
INCOME (LOSS) FROM
OPERATIONS 87,062 2,448,262 (323,073) 4,058,297

Interest expense,
net (109,253) (395,087) (418,557) (1,009,699)
Government grants 24,951 17,274 124,005 40,574
Other income, net 245,971 (1,948) 302,185 20,047
----------- ------------ ----------- --------------
INCOME (LOSS) FROM
OPERATIONS BEFORE
INCOME TAXES 248,731 2,068,501 (315,440) 3,109,219

INCOME TAX
(EXPENSE) BENEFIT (22,358) 33,920 (41,085) 73,660
----------- ------------ ----------- --------------

INCOME (LOSS) FROM
CONTINUING
OPERATIONS 226,373 2,102,421 (356,525) 3,182,879
----------- ------------ ----------- --------------

DISCONTINUED
OPERATION
Loss from
discontinued
operation - (34,219) - (33,379)
Gain from
disposition of
discontinued
operation - 368,249 - 360,913
NET GAIN FROM
DISCONTINUED
OPERATION - 334,030 - 327,534
----------- ------------ ----------- --------------

NET INCOME (LOSS) 226,373 2,436,451 (356,525) 3,510,413
----------- ------------ ----------- --------------

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

Three Months Ended Six Months Ended
----------------------- ----------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
----------- ----------- ---------- -----------
OTHER COMPREHENSIVE INCOME
Foreign currency
translation 16,121 93,622 28,419 350,834
----------- ----------- ---------- -----------
COMPREHENSIVE (LOSS) INCOME 242,494 2,530,073 (328,106) 3,861,247
=========== =========== ========== ===========

WEIGHTED AVERAGE SHARES
OUTSTANDING BASIC 19,961,000 19,961,000 19,961,000 19,961,000
----------- ----------- ---------- -----------
WEIGHTED AVERAGE SHARES
OUTSTANDING DILUTED 21,126,517 19,961,000 19,961,000 19,961,000
=========== =========== ========== ===========

NET INCOME (LOSS) PER SHARE
FROM CONTINUING
OPERATIONS, BASIC $ 0.01 $ 0.11 $ (0.02) $ 0.16
----------- ----------- ---------- -----------
NET INCOME (LOSS) PER SHARE
FROM CONTINUING
OPERATIONS, DILUTED $ 0.01 $ 0.11 $ (0.02) $ 0.16
=========== =========== ========== ===========

NET INCOME PER SHARE FROM
DISCONTINUED OPERATIONS,
BASIC AND DILUTED $ - $ 0.01 $ - $ 0.01
=========== =========== ========== ===========

NET INCOME (LOSS) PER
SHARE, BASIC $ 0.01 $ 0.12 $ (0.02) $ 0.18
----------- ----------- ---------- -----------
NET INCOME (LOSS) PER
SHARE, DILUTED $ 0.01 $ 0.12 $ (0.02) $ 0.18
=========== =========== ========== ===========

Contacts:
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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