HLS Systems International Receives Award from the PRC Ministry of Railway.

BEIJING -- HLS Systems International, Ltd. (OTCBB: HLSYF, HLSWF, HLSUF) ("HLS") today announced that the PRC Ministry of Railway has presented HollySys, HLS' operating subsidiary in China, with its First Class Award for Quality, Satisfactory Services and Overall Performance for its rail automation control system. This is the highest recognition given by the PRC Ministry of Railway and confirms the quality of the HLS rail automation control system.

Dr. Wang Changli, HLS' Chief Executive Officer commented, "Receiving the First Class Award from the Ministry of Railway is a very important milestone for HLS. This coveted award was based on the consistent high performance of our installation over a multi-year evaluation by the authorities and confirms the quality, reliability and performance of our rail automation system."

Dr. Wang continued, "China has about 6% of the world's track but moves over 25% of the world's cargo. Over the next 10 years the PRC Ministry of Railway is expected to add over 6,000 miles of track and upgrade an additional 6,000 miles to help alleviate the over-burdened rail system. This surge in activity is creating a huge demand for control systems and as a company whose products and services have been recognized as superior by the Ministry of Railway, we expect that HLS will receive a substantial portion of the control system contracts related to this expansion."

About HLS Systems

HLS has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing over 4700 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 may contain 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. 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; 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.