Brilliance China Automotive Holdings Limited ("Brilliance Auto" or "the Company"; Stock code: 1114.HK), a leading manufacturer and distributor of sedans, minibuses and automotive components in China, and the Rocket Capital/Red McCombs Investment Consortium ("Rocket Capital/Red McCombs") today signed a memorandum of understanding ("MOU") under which Rocket Capital/Red McCombs will subscribe approximately 10%-15% of the post-issue share capital of the Company's new shares for a total consideration of approximately US$100 million (equivalent to approximately HK$775 million).

Rocket Capital Investment ("Rocket Capital") is a private investment platform founded by NBA Houston Rockets owner Mr. Leslie L. Alexander. To realize the full potential of its investment, Rocket Capital has invited leading U.S. auto dealership and aftermarket operator Red McCombs Automotive Group ("Red McCombs") to be a member of the consortium.

The investment will significantly enhance Brilliance Auto's capital position and establish a far-reaching partnership with Rocket Capital/Red McCombs. In addition to utilizing the new shared proceeds to expand production capacity for new sedans and Brilliance-BMW products, Rocket Capital/Red McCombs and Brilliance Auto will also form joint ventures ("the JVs") to cultivate auto aftermarket businesses in China and to distribute the Company's products to markets outside of China.

Red McCombs, with its deep industry expertise, will play an active role in the business development of the JVs. As a leading U.S. automotive aftermarket group founded by Mr. Billy Joe "Red" McCombs in 1958, Red McCombs has a successful track record of operating auto dealerships and of being one of the first to introduce Japanese and Korean auto brands to the U.S. market.

By combining Brilliance Auto's strong brand equity and local expertise with Red McCombs' track record in the auto industry and Rocket Capital's expertise in the international capital markets and consumer sector, the JVs will (i) cultivate opportunities in China's automotive aftermarket, specifically targeting the areas of dealerships, extended warranty, 4-S shops, dealership training, auto finance, used cars sales, auto rental / leasing, auto insurance and internet auto sales, which will have first mover advantage to capture the under-penetrated, high growth Chinese auto aftermarket, and (ii) gain immediate access to the U.S., the world's single largest auto market.

Mr. WU Xiaoan, Chairman of Brilliance Auto, said, "This partnership with Rocket Capital and Red McCombs is a strong vote of confidence in the company's business and management as well as our future growth prospect based on our solid performance. The capital expansion will fuel our business initiatives in China, while the JVs development will offer us new revenue and profit growth. The industry expertise, global network, brand building expertise and synergies created from the partnership will give Brilliance new momentum to firmly establish ourselves as a key player in the automobile industry in China and beyond."

Mr. Kenneth HUANG, Managing Director and Senior Partner of Rocket Capital, said, "We are excited about our investment in Brilliance Auto which represents the first significant investment undertaken by Rocket Capital in a listed company. The unique deal structure allows us to capture value at both the Brilliance Auto and the JV levels. We are delighted to play an active role in lining up the partnership with Red McCombs which demonstrates our commitment to value creation. We have every confidence that, with our support and Red McCombs' industry expertise, Brilliance Auto will realize its full potential as it enters a new accelerated development phase."

Deutsche Bank AG and UBS AG, acting through its business group, UBS Investment Bank are financial advisers to Brilliance Auto and Rocket Capital respectively in the transaction.