China Auto Logistics Says Newly Created Tianjin Free Trade Zone Brightens Outlook

China Auto Logistics Reports 2014 Third Quarter and Nine Month Results

TIANJIN, China, via ETELIGIS INC., 12/17/2014 – – China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), a top seller in China of luxury imported automobiles and a leading provider of auto-related services, reported today that it anticipates a positive impact on CALI over time from the decision three days ago by China’s State Council to create a Free Trade Zone (FTZ) in Tianjin modelled on the year old pilot FTZ in Shanghai. The Company said the new Tianjin FTZ encompasses CALI’s Tianjin Airport International Automall, as well as the International Automall owned and operated by Tianjin Binhai International Automall (Binhai), CALI’s strategic partner in a new retail auto sales business launched in November.

Mr. Tong Shiping, Chairman and CEO of CALI, stated, “Among other things, just as has been the case in Shanghai, we believe we will see a very positive impact on commercial property values in Tianjin, with the expectation that the zone will expand commercial activity and attract many new businesses – – including international companies attracted by the promise of reduced red tape and bureaucracy and other anticipated benefits of an FTZ.”

He added, “The full promise of the FTZ in Shanghai includes many other things that we see developing there and in Tianjin within the framework of further free market reforms. These include improved cross border capital flows, access to and investment by foreign capital and so on, which as a leading importer of luxury vehicles, we see enhancing our business, particularly in combination with the revision this year in government rules on imported cars.”

“As noted in the press release from the State Council on establishing FTZs in Guangdong, Fujian and Tianjin,” Mr. Shiping added, “they further envision possible ‘new experiments’ in these cities which could provide additional benefits to businesses like ours that are engaged in international trade. All in all, we are pleased and excited by this hoped for development.”

About China Auto Logistics Inc.:

China Auto Logistics Inc. is one of China’s top sellers of imported luxury vehicles. It also provides a growing variety of "one stop" automobile related services such as short term dealer financing. Additionally, in November, 2013, it acquired the owner and operator of the 26,000 square meter Airport International Auto Mall in Tianjin for $91.4 million, with plans to develop the auto mall, among other things, as the flagship site for a joint venture with Car King (China) Used Car Trading Co., Ltd. In August, 2014, the Company also announced a Strategic Cooperation Agreement with a leading auto dealer leasing and development company (Binhai) to greatly expand its high end imported auto business via the purchase and construction of new auto malls throughout China coupled with a new e-commerce platform. In November, 2014, it launched a retail auto sales operation with Binhai.

Information Regarding Forward-Looking Statements:

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission. We do not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:

Sun Jiazhen

sjz_cali

Ken Donenfeld

DGI Investor Relations Inc.

kdonenfeld

Tel: 212-425-5700

Fax: 646-381-9727

SOURCE: China Auto Logistics, Inc.

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