EK CHOR CHINA MOTORCYCLE CO. LTD.

ANNOUNCES 2000 ANNUAL RESULTS

HONG KONG, March 27, 2001 - Ek Chor China Motorcycle Co. Ltd. ("Ek Chor China" or the "Company"; NYSE: EKC), today announced its results for the year ended December 31, 2000.

Highlights

• Net income - RMB28.0 million (US$3.4 million) (1999: RMB63.9 million).
• Basic earnings per share - RMB1.60 (US$0.19) (1999: RMB3.68).
• Share of net income of joint ventures and associated companies - RMB61.8 million (US$7.5 million) (1999: RMB71.8 million).
• Dividend per share - US$0.25 per share (1999: US$0.50 per share).

Overview

The motorcycle business of Ek Chor China continued to face difficult business conditions in 2000. Because of improvements in operating efficiencies and cost controls, however, Luoyang Northern Ek Chor Motorcycle Company Limited was able to generate a profit despite intense competition and bad debt provisions made during the year. The operating results of our parts manufacturing ventures were satisfactory taking into consideration the competitive market environment. Shanghai-Ek Chor General Machinery Co., Ltd., Shanghai Ek Chor Nissei Co., Ltd. and Zhan Jiang Deni Carburetor Co. Ltd. all reported profits for the year 2000.

We expect the difficult trading conditions in the PRC to continue in 2001. We hope that our continuous efforts on cost control and improving operating efficiencies will enable us to improve our performance during these difficult times.

Brief review of year ended December 31, 2000 results of the Company's joint venture activities

• Luoyang Northern Ek Chor Motorcycle Company Limited ("Luoyang Motorcycle")

Luoyang Motorcycle recorded net sales of RMB843.6 million (US$101.9 million) in 2000, compared to RMB914.3 million in 1999, a decrease of 7.7% compared to the previous year. Net income for the year was RMB0.7 million (US$0.1 million) (1999: RMB13.8 million). A bad debt provision of RMB7.9 million and a deferred tax charge of RMB6.0 million were the primary reasons for the reduction in net income during 2000.

Luoyang Motorcycle's total unit sales were 231,251 units for 2000, a decrease of 5.9% compared to the previous year. Unit sales of the 90cc model and 100cc model were 128,415 units and 36,811 units, decreases of 22.4% and 41.8% respectively compared to 1999. Luoyang Motorcycle introduced a new 110cc model in 2000 and 33,456 units of this new product were sold during the year.

The Company owns an effective 55% interest in Luoyang Motorcycle.

• Shanghai-Ek Chor General Machinery Co., Ltd. ("Shanghai Machinery")

Shanghai Machinery recorded net sales of RMB954.7 million (US$115.3 million) in 2000, compared to RMB920.4 million in 1999, an increase of 3.7% compared to the previous year. Net income was RMB105.4 million (US$12.7 million), a decrease of 19.7% compared to the previous year (1999: RMB131.3 million). Intensive competition and price cutting pressure from the venture's customers drove down the profit margin of Shanghai Machinery during the year despite the venture's efforts in controlling its costs and expanding its market share.

Shanghai Machinery sold 599,751 automotive air conditioner compressors and 417,669 units of receiver dryers during the year ended 2000, increases of 21.3% and 5.1% respectively compared to 1999.

The Company owns an effective 50% interest in Shanghai Machinery.

• Zhan Jiang Deni Carburetor Co., Ltd. ("Deni Carburetor")

Deni Carburetor posted a significant improvement in sales and income in 2000 because of a substantial increase in sales of motorcycle carburetors during the year. This increase compensated for the continuing reduction in automotive carburetor demand resulting from the rapid transition to vehicles using fuel injection instead of carburetors in the engine set. Sales for 2000 amounted to RMB230.2 million (US$27.8 million), compared to RMB199.3 million in 1999, an increase of 15.5%. Deni Carburetor's net income during 2000 was RMB26.9 million (US$3.2 million) (1999 : RMB4.6 million).

Deni Carburetor sold 38,228 automotive carburetors and 2,003,597 motorcycle carburetors, a decrease of 48.0% and an increase of 58.9% respectively compared to 1999.

The Company owns an effective 28% interest in Deni Carburetor.

• ECI Metro Investment Co., Ltd. ("ECI Metro")

ECI Metro is engaged in the dealership of a full range of Caterpillar products in several provinces in the PRC. Sales for 2000 were RMB285.9 million (US$34.5 million), compared to RMB177.2 million in 1999, an increase of 61.3%. ECI Metro's net income for 2000 was RMB7.3 million (US$0.9 million) (1999 : RMB11.2 million), a decrease of 34.8% over last year. Reduction in subsidies from Caterpillar and reduced gross margins were the primary reasons for the decrease in net income.

The Company owns an effective 50% interest in ECI Metro.

• Shanghai Ek Chor Nissei Co., Ltd. ("Shanghai Nissei")

At present, Shanghai Nissei manufactures speedometers for automobiles and motorcycles. Shanghai Nissei reported a net income of RMB0.7 million (US$0.1 million) for the year (1999 : RMB0.8 million), a decrease of 13% compared to the previous year.

The Company owns an effective 34% interest in Shanghai Nissei.

• Shanghai-Ek Chor Motorcycle Company Limited ("Shanghai Motorcycle")

In November 1999, the Company received a final payment of RMB41.3 million relating to the sale of the Company's interest in Shanghai Motorcycle. This included RMB13.6 million that was previously recognized as income during the year ended December 31, 1998 and carried as a receivable pending receipt of payment. This also included RMB27.7 million representing a portion of amounts the Company previously provided to the purchaser in respect of anticipated PRC tax liabilities relating to the sale of the Company's interest. The actual amount of taxes levied by the PRC tax authorities in this regard was lower than the amount initially estimated and consequently this amount was returned to the Company pursuant to the terms of the sale and purchase agreement relating to the Company's interest in Shanghai Motorcycle. This RMB27.7 million portion of the final payment was recognized as a gain during the year ended December 31, 1999.

Dividends

The Board of Directors has declared a dividend of US$0.25 per share of the Company's Common Stock. The dividend will be paid on May 25, 2001 to holders of the Company's Common Stock whose names appear on the transfer books of the Company on April 30, 2001.

Closure of Transfer Books

The transfer books of the Company will be closed from April 30 to May 4, 2001 (both days inclusive) in order to establish entitlement to this dividend.

Change of Directors

Mr Akom Girawong has resigned as a Director of the Company on March 27, 2001 and has been replaced by Mr Robert Ping-Hsien Ho, who was appointed as a Director with effect from the same date. The Board wishes to express its sincere gratitude to Mr Akom Girawong for his valuable contribution to the Company.

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Exchange Rate Note : Certain amounts herein have been translated from Renminbi ("RMB"), the legal tender currency in the PRC, into U.S. dollars ("US$") solely for the convenience of the reader, using the unified exchange rate as quoted by the People's Bank of China on December 31, 2000 of RMB8.28 = US$1.00. No representation is made that RMB could have been, or could be, converted into US$ at that rate or any other rate, or at all.

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Ek Chor China is a Bermuda incorporated holding company which owns interests in and actively manages sino-foreign joint ventures in the PRC. These ventures are engaged in the design, manufacture and sale of motorcycles and motorcycle parts and components, automotive air conditioner compressors and carburetors, and certain other automotive instrumentation parts and components. The Company has considered and will consider from time to time divestment of its interest when presented with attractive opportunities. The Company's common shares are listed on the New York Stock Exchange under the symbol EKC.

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Ek Chor China Motorcycle Co. Ltd.

Consolidated Statements of Income

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Year ended December 31,

Note 1: Basic earnings per share

The calculation of basic earnings per share is based on the weighted average number of shares outstanding during the applicable period.

The weighted average number of shares of Common Stock outstanding for each of the years ended December 31, 1999 and 2000 were 17,363,364 and 17,526,000 respectively.

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Ek Chor China Motorcycle Co. Ltd.

Consolidated Balance Sheets

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As of December 31,

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Ek Chor China Motorcycle Co. Ltd.

Summary of Financial Information

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Year ended December 31,

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Ek Chor China Motorcycle Co. Ltd.

Financial Highlights

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Unit sales for the year ended December 31,

% Increase/

(Decrease)

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Distributed by Ek Chor China Motorcycle Co. Ltd. For further information, please contact:

Ek Chor China Motorcycle Co. Ltd.

Stanley Chan

Tel: (852) 2520 1601

Fax: (852) 2866 7634