VERO BEACH, Fla., May 27, 2004 (PRIMEZONE) -- The Enchanted Village, Inc. (OTCBB:ECVL) announced today that it has completed the acquisition of Fairford Holdings Limited of Hong Kong. Fairford owns 90% of the capital stock of Ruili Group Ruian Auto Parts Co., Ltd.("Ruili"), a sino-foreign joint venture located in Ruian City of Zhejiang Province in the People's Republic of China. Ruili manufactures and distributes automotive air brake valves and hydraulic brake valves in China and internationally for use primarily in vehicles weighing over three tons, such as trucks, vans and buses. The Company has more than 400 employees and sells products under the "SORL" brand name to over 30 OEMs, including First Automobile Works, Dongfeng Automobile Works, and China Heavy-Duty Automobile Group. Ruili also sells its products to more than 800 distributors in the aftermarket for replacement purpose. Management believes that it is the largest manufacturer of automotive brake valves in China.
As consideration for the acquisition of Fairford, the Company issued 1,000,000 shares of Series A Convertible Preferred Stock, which are convertible into 194,305,800 shares of the Company's common stock. As a result of the acquisition, the shareholders of Fairford have acquired control of the Company and a new board and executive officers have been appointed.
Following the acquisition and the conversion of the Series A Convertible Preferred Stock to common stock, the Company had approximately 199,288,000 shares of common stock issued and outstanding. After giving effect to a proposed 1-for-15 reverse stock split, the Company will have 13,285,867 shares of common stock issued and outstanding. Concurrently with the reverse stock split, the Company intends to change its name to SORL Auto Parts, Inc. It is expected that the reverse stock split and the name change will be completed as soon as possible.
Keating Investments, LLC, an NASD member firm specializing in reverse merger transactions, acted as the financial advisor to Ruili in connection with the acquisition.
Additional information on the Company and Fairford may be obtained from either Fairford's financial advisor (FirstAlliance Capital Limited: e-mail: weiming@firstalliance-capital.com) or from Tim Keating of Keating Investments: (720) 889-0131; e-mail: tk@keatinginvestments.com.