China’s leading auto consumer community completes new round of financing

-Goldman Sachs leads the round with USD25 million investment

China, Beijing, August 20, 2006 – China’s leading auto consumer community, Chinacars Inc.

(Cayman) today announced the successful completion of its Series B financing with an investor group

led by Goldman Sachs. Following this round’s completion, Mr. David Chou of Goldman Sachs will

join Chinacars’ board of directors. The Series A investors, represented by venture fund Granite Global

Ventures (“GGV”), also participated in the round. China Renaissance, an investment advisory firm

based in Beijing, acted as the exclusive financial advisor and placement agent to Chinacars.

Commenting on the investment, Chinacars Chief Executive Officer Mr. John Zhang said: “Just 10

months after our Series A investment led by GGV, Chinacars raised another significant round from an

investment group led by Goldman Sachs, one of the world’s leading investment banking and securities

firms. Our Series B financing is another landmark transaction which reaffirms our leadership in the

automobile information and post-sales services market.”

Mr. Zhang continued: “We position ourselves as China’s leading auto consumer community

because we believe in the potential of combining the cost advantage of Internet technology and the

market size of China’s post-sales auto services market. Behind our web interface, we provide a host of

informational and transactional services, including spare parts, repair and maintenance, buying and

selling, insurance and financing, navigation and travel. All of these products service China’s 30 million

vehicles, more than 100 million drivers and several hundred million potential car buyers everyday.”

Goldman Sachs Managing Director Mr. Kevin Zhang commented, “We are delighted with this

opportunity to strengthen our relationship with Chinacars. It's an excellent company run by a great

team of professional managers and industry veterans with the ability to deliver sustained growth.”

Chinacars’ Chairman of the Board, Wanxiang’s Chief Executive, Mr. Weiding Lu said: “We have

always believed in the Internet’s profound impact to the auto consumption and supply industries. After

GGV, we are very pleased to see another group of overseas investors, led by Goldman Sachs, join our

team to help guide and grow the business.”

Chinacars Series A investor, board member, GGV managing director Ms. Jenny Lee added: “We

welcome the participation of Goldman Sachs as a new shareholder of Chinacars and look forward to

working with the Goldman team to further deliver more value to the auto consumer community.”

Chinacars Series A investor, board member, GGV managing director Mr. Jixun Foo said:

“Chinacars is one of GGV’s key investment projects in China. We believe the Chinacars team, led by

CEO John Zhang, will scale higher peaks and achieve even better results in the months to follow.”

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Chinacars Chief Executive John Zhang concluded: “Since 2001, China’s auto market has

witnessed three phases of growth, from auto manufacturing, to sales and service, to the consumer.

Chinacars has occupied a pioneering position in each of them. Following this round of investment, we

will focus on cultivating new markets and strengthening our share in existing markets.”

About Chinacars Inc.

Chinacars is China’s leading auto consumer community. Established in November 2001, it employs more than 500

people and had annual revenues more than 100 million RMB in 2005. Headquartered in Beijing with branch offices in

Shanghai, Guangzhou, Chongqing, Xi’an, Changchun and twenty other cities, Chinacars has attracted investment by

China’s leading industry conglomerate Wanxiang Holdings, US venture fund Granite Global Ventures (GGV) and

global investment bank Goldman Sachs.

Chinacars targets China’s auto makers, supply chains and consumers. It provides comprehensive, multi-product,

multi-platform and single brand services to its customers, including buying, selling, insurance, repair, accessories,

travel and social networking. Chinacars owns China’s largest and oldest independent auto web portal

(www.chinacars.com) and the sector’s largest professional call centre. Leveraging its technology advantage, built on

its unique n-tier IT infrastructure which combines Internet, IT telephony and geoinformatics, Chinacars’ Car-E series

of products provide one-stop services to thousands of dealers, fleets, repair garages and millions of drivers with high

efficiency, high satisfaction and low cost. Chinacars’ cutting edge, independently developed GPS technology

currently serves Guangzhou Police 110 vehicle fleet and is Unicom’s only certified GPS positioning partner.

For more information, please visit www.chinacars.com

About Goldman Sachs

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a

wide range of services worldwide to a substantial and diversified client base that includes corporations, financial

institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest

investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo,

Hong Kong and other major financial centers around the world.

About Granite Global Ventures

Granite Global Ventures (GGV) is an expansion stage venture capital firm with $400 million under management. The

firm was founded in 2000 and has offices in Menlo Park, CA, Shanghai, and Singapore. GGV brings a depth of

experience in investments, cross-border business development activities, mergers and acquisitions, and IPO

transactions. GGV’s focus includes enterprise software, information technology, infrastructure, services,

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communications, networking, and select healthcare investments. GGV’s China portfolio companies include leading

market players such as Alibaba, Hurray!, AAC Acoustic Technologies, Hisoft, OneWave and BCD.

For more information, please visit: www.ggvc.com

About Wanxiang

The Wanxiang Group was founded in July 1969. The State Council appointed Wanxiang as one of the 120 national

key enterprises for testing for reform and one of the 520 national key enterprises for the Chinese economy.

Wanxiang’s focus is the auto parts industry and its goal is to grow into a modern enterprise with a distinctive culture.

Wanxiang strives to adopt the best management practice, the most advance technology and to compete in the

mainstream global markets. To that end, Wanxiang has established manufacturing, distribution and service footprint

all over the world.

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