Letter to Customers: Price Adjustment of Autoglass

17^th June, 2008

Our Valued Customers and Business Partners,

Thanks for your continuous support, Xinyi Glass has enjoyed rapid growth and prompt expansion in the last decade.  Nowadays, Xinyi Glass is not only a well-known, international brand name in the glass industry but also a sign of globally accepted and recognized high quality glass products.  On behalf of Xinyi Glass, please let us express our gratitude to your enduring support.

Recently, you may be aware of an ongoing appreciation of RMB as well as the substantial increase in costs of raw materials, fuel, electricity and packaging materials.  An increase in overall operating cost was triggered eventually.  And Xinyi Glass is now facing a great challenge to cope with such situation.

Xinyi Glass always aims to create values for our valued customers and business partners.  With your enormous support, vertical integration process has been undertaken in Xinyi Glass.  Such integration has already created vast values for Xinyi Glass and for our customers, too.  However, the challenge of costs increase cannot be managed simply by the integration.  For this reason, in order to hedge the risks caused by increasing costs and maintain a healthy and sustainable environment for business development.  We will first improve the cost effectiveness through enhanced management.  Second, we have no choice but decide that the price of all the automobile glass products will be increased by 12% with effect on 1^st July, 2008.

The success of Xinyi Glass and all of our customers is relying on our trust and mutual benefits.  Your understanding and cooperation in the issue of price adjustment is highly appreciated.  We do hope that our business relationship can be further strengthened in the future and long term business development can be achieved as well.  Thank you for your attention.

Yours sincerely,
Wesley Lee 　　Chief Operations Officer
Jason Lau　　 Chief Financial Officer
Xinyi Glass Holdings Ltd.