CHANGSHA, China, Dec. 7 /PRNewswire-Asia-FirstCall/ -- Tongxin International Ltd. (Nasdaq: TXIC), a China-based manufacturer of engineered vehicle body structures ("EVBS") and stamped parts for the commercial automotive industry, today announced it has been granted a tax holiday as a New and High Technology Enterprise in China.

For the calendar year 2009 year and through 2011, Tongxin International's effective income tax rate will be reduced to 15% from the standard tax rate of 25%. Tongxin has completed its mandatory 15-day waiting period after its conditional certification as a New and High Technology Enterprise on October 29, 2009 and recently received formal notification of their new status from the local tax authorities.

Tongxin's new tax rate will be calculated for the Company's 2009 full year earnings and thus management anticipates approximately $2.0 million in incremental earnings as a result of the adjustment. As a result, calendar 2009 net income guidance is increased to $16.7 million.

About Tongxin International Ltd.

Tongxin International Ltd., the largest independent supplier of EVBS in China, is capable of providing EVBS for both the commercial truck and light vehicle market segments. The Company also designs, fabricates and tests dies used in the vehicle body structure manufacturing process. EVBS consists of exterior body panels including doors, floor pans, hoods, side panels and fenders. Tongxin maintains a network of 130 customers throughout 20 provinces in China. Headquartered in Changsha, Tongxin also maintains regional manufacturing in Dali, Ziyang and Zhucheng.

FORWARD LOOKING STATEMENTS

Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Tongxin International's most recent report to the SEC on Form 6-K, which may be revised or supplemented in subsequent reports to the SEC. Such factors include, among others, the cost and timing of implementing restructuring actions, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and certain global and regional economic conditions. Tongxin International does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.



    For more information, please contact:

    COMPANY:

     Mr. Rudy Wilson, CEO
     Tel:   +1-248-593-8330
     Email: rudy@txicint.com

     Ms. Jackie Chang, CFO
     Tel:   +1-626-660-7117
     China: +86-13467553808
     Email: jackie@txicint.com
     Web:   http://www.txicint.com

    INVESTOR RELATIONS:

     John Mattio, SVP
     HC International, Inc.
     Tel:   +1-203-616-5144 (U.S.)
     Email: john.mattio@hcinternational.net
     Web:   http://www.hcinternational.net

SOURCE Tongxin International Ltd.