Clarification to HLS Systems International's Strategic Plan.

BEIJING -- HLS Systems International, Ltd. (OTCBB: HLSYF, HLSWF, HLSUF) ("HLS") on Thursday, November 8, 2007 provided the financial community with information regarding its strategic plan. A difference in the corporation legal requirements in China versus those in the U.S. made that announcement difficult for select U.S. investors to understand fully, and HLS is issuing this clarification to resolve any misunderstanding that the announcement may have caused for U.S. investors.

As stated in the announcement, HLS intends to use approximately US $40 million to be received from the recent call of its warrants to increase its ownership interest in Beijing HollySys, one of its two principal operating companies. As a result of that additional investment, HLS will increase its ownership of Beijing HollySys from the current 74.11% to approximately 85%. As a result, a proportional increase of the earnings of Beijing HollySys will accrete to HLS. Given the anticipated 30% - 35% annual growth rate of revenues and earnings from Beijing HollySys over the next several years, the return on that investment will generate positive value for HLS and its shareholders.

In addition to those benefits, the $40 million in additional capital will still be available to Beijing HollySys to make strategic acquisitions, capital expenditures or for other purposes to support the company's strategic objectives, further enhancing its profit potential and the benefit for shareholders of HLS.

About HLS Systems

HLS has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements are statements that are not historical facts, including statements relating to the expected growth of HLS and intentions reflected in the strategic plan. Such forward-looking statements, based upon the current beliefs and expectations of HLS' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China and in Southeast Asia; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which HLS is engaged; cessation or changes in government incentive programs: potential trade barriers affecting international expansion; fluctuations in customer demand; management of rapid growth and transitions to new markets; intensity of competition from or introduction of new and superior products by other providers of automation and control system technology; timing, approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in HLS' filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. HLS does not assume any obligation to update the information contained in this press release or filings.