The Foundation Ceremony of KML Powertech Ltd.

April 18, 2006 is an important date for KML since it is the day of KML Powertech foundation ceremony.

KML Powertech Ltd. is the second subsidiary of KML bearing and Equipment Ltd. in mainland China. Positioning as the best water pump bearing manufacturer in China, the annual production capacity of water pump bearings is expected to achieve 5 to 6 million pieces. With a long-term strategy, KML Powertech will be also developed as a technical center doing laboratory test of car parts and electrical motor bearings, as well as a Research and Development centre of different advanced technologyl products. KML Powertech will devote to exploit environmental protection technology, including parts rebuilding and the application of aqua-base bearing washing. It is expected that KML Powertech will start the production by the end of 2006. With KML Powertech, KML will expand the production capacity of water pump bearings and become much stronger in new product development and research.