HONG KONG, June 24, 2008 (PRIME NEWSWIRE) -- Highway Holdings Limited (Nasdaq:HIHO) today announced it has received a tooling order from a leading European appliance company to be utilized for the production of several plastic components, which, after assembly, will function as an indicator unit for monitoring the dust bag capacity of vacuum cleaners. Terms were not disclosed.
"Based on a long business relationship with one of this organization's other smaller factories, we were able to gain interest in our services from a second factory and secure a tooling order. A tooling order usually leads to a long-term OEM production arrangement. We regard this as a major breakthrough and a strategic opportunity to expand the business relationship with this highly respected appliance company," said Roland Kohl, president and chief executive officer.
He noted that the expected original equipment manufacturing order will utilize the company's plastic injection molding operation, as well as its assembly capabilities.
About Highway Holdings
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies. It also manufactures finished products, such as light fixtures, LED lights, radio chimes and other electronic products. Highway Holdings is headquartered in Hong Kong and operates four manufacturing facilities in the People's Republic of China.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.