CHINA BAK BATTERY, INC.

SHENZHEN, China, Feb. 9/Xinhua-PRNewswire/-China BAK Battery, Inc. (OTC Bulletin Board: CBBT), one of the largest manufacturers of Lithium Ion (Li-ion) battery cells, today announced that it has signed manufacturing agreements with two Original Equipment Manufacturers (OEMs), including Lenovo Group Ltd., a leading global manufacturer serving the PC and cell phone markets, and A123 Systems, an emerging developer of high power Lithium Ion battery technology based on patented nanotechnology licensed from the Massachusetts Institute of Technology (MIT). Details include:

-- China BAK Battery has also formed a contract manufacturing partnership with A123 Systems, an emerging supplier of Nano-Phosphate Li-ion batteries based on patented technology developed at MIT. Since early 2005, China BAK Battery and A123 have collaborated at their Shenzhen facilities to design, develop and implement an advanced mass production line to exclusively manufacture first products for A123. High volume production has commenced and these products have been rigorously tested to meet the most stringent Tier 1 OEM quality requirements. A123 high power batteries will be used in a variety of applications including power tools, medical devices and hybrid electric vehicles which are all respective growth areas for the Li-ion battery market.

"These new manufacturing agreements validate the success of our strategy to increase our presence in traditional Lithium Ion applications by expanding our OEM customer base and penetration while also partnering with leading edge technology developers," commented Xiangqian Li, the Company's Chief Executive Officer. "By partnering with leading researchers and manufacturers, we are leveraging our high quality, low cost manufacturing infrastructure, expanded capacity and capabilities to position the Company for continued growth during 2006. Forging relationships with industry leaders like Lenovo, and technology leaders like A123 Systems, shows our commitment to diversify and strengthen both our customer and revenue base. During 2005, we raised approximately $60 million, which improved our working capital position while enabling us to significantly expand our manufacturing facilities. Resulting from this expansion, our capacity for cell phone battery cells has increased from 15 million to 22 million pieces per month. Additionally, we also established volume production capability for lithium polymer battery cells, constructed a production line for a new 'high power' battery cell initially directed towards the cordless power tool market and other applications while beginning the implementation of a high volume lap top computer battery cell manufacturing line. These successes have enabled us to maintain a leading position in our industry, while winning new business and growing our base of International revenues. We are extremely pleased with our achievements during 2005 and believe the company is well positioned to deliver another record year in fiscal 2006."

Management will conduct a conference call to discuss the Company's first quarter financial results and provide a corporate update. The conference call will take place at 8:30 a.m. Eastern Time, on Friday, February 10, 2006. Anyone interested in participating should call 1-888-417-2310 if calling within the United States or 1-973-935-2981 if calling internationally. There will be a playback available until February 17, 2006. To listen to the playback, please call 1-877-519-4471 if calling within the United States or 1-973-341-3080 if calling internationally. Please use pin number 7022264 for the replay.

China BAK Battery, Inc. is a commercial manufacturer of standard and customized Lithium Ion (Li-ion) rechargeable battery cells for use in various portable electronic applications, including cellular phones, MP3 players, laptop computers, Bluetooth headsets, Power Tools, and other general industrial applications. BAK utilizes its low-cost, 1.9 million square foot, world class manufacturing operation in Shenzhen, PRC, which was recently expanded to produce new proprietary products. BAK is the largest Li-ion replacement battery cell manufacturers in China and one of the top ten in the world.

Incorporated in 1988 in Hong Kong, the Company is the largest personal computer manufacturer in the People's Republic of China, and as of 2004 is the third largest in the world, which includes the purchase from of IBM's computer division. The company's US headquarters are in Purchase, New York. In addition to desktop and laptop computers, Lenovo sells servers, handheld computers, imaging equipment and mobile phone handsets. Lenovo also provides information technology integration and support services, and its QDI unit offers contract manufacturing.

This press release contains certain statements that may include "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding China BAK Battery, Inc. and its subsidiary companies business strategy, plans and objective and statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although China BAK Battery, Inc. believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. China BAK Battery, Inc.'s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in China BAK Battery, Inc.'s periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to China BAK Battery, Inc. or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, China BAK Battery, Inc. does not assume a duty to update these forward-looking statements.