China Yuchai International's Subsidiary Receives Preferential Tax Treatment as a High-Tech Enterprise

SINGAPORE, April 30 China Yuchai International Limited ("China Yuchai" or the "Company"), announced today that its subsidiary, Guangxi Yuchai Machinery Company Limited ("GYMCL"), has been awarded the status of a "High-Tech Enterprise" from the Chinese government. With this designation, GYMCL qualifies for a preferential national income tax rate of 15% through the year 2010 rather than the normal corporate income tax rate of 25%.

GYMCL met the qualifying criteria as a High-Tech Enterprise based on a series of tests and inspections. Among the distinguishing characteristics of High-Tech Enterprises are possession of innovative core technology, independent intellectual property rights, a high ratio of educated scientific and technical personnel to total employees, and a high proportion of high-tech product Research & Development expense to total expenses.

GYMCL's R&D and technical innovations have made it a leader in the development of environmentally friendly products. Among its successes have been the launch of the first self-developed National 4 and National 5 compliant diesel engines in China to reduce engine emissions. GYMCL has also a history of being the first to market with a number of new diesel engine innovations. For the 2008 Beijing Olympic Games, GYMCL was the only company producing National 4 compliant engines commercially resulting in the receipt of a large number of orders compared with other engine types.