This announcement is made by BYD Company Limited (the "Company") on a voluntary basis.

The Company and all members of the Board of Directors hereby warrant the truth, accuracy, completeness of the contents in this announcement, and the absence of any false information, misleading statements or material omission in this announcement.

1. Basic facts of the 5.26 Traffic Accident

According to the notice issued by the Traffic Police Department of Shenzhen in the evening of 28 May 2012, at around 3 a.m. in the morning of 26 May 2012, while the BYD e6 electric taxi with car plate number Yue(ຽ) BH1Q78 was in its normal course of driving, it was hit by a luxury sports car from behind on the left at a speed of not less than 180 Km/h, resulting in the loss of control of the taxi which swerved at an accelerated speed in circular turns from the second lane to the fifth lane, and then bounced on to the green belt with its back bumping into a big tree with great force. The back of the taxi created a large groove on the tree. After multiple rounds of crash and spinning, the car body was badly distorted and later turned into fire.

2. Related information

BYD e6 electric car has passed all the tests of the authoritative departments approved by the State according to national standards and its crash tests were conducted in compliance with the national laws and regulations. BYD e6 was listed on the 203rd Vehicle Manufactures and Products Announcement catalogue published by the Ministry of Industry and Information of the People's Republic of China. The batteries used by e6 electric cars have undergone abuse tests by authoritative State departments. The results show that upon 50% deformation, the battery modules did not ignite or burn, which complies with the national standards. e6 electric taxis have been in large-scale operation in Shenzhen for over two years. As of May 2012, the longest operating mileage of a single car has reached over 200,000 kilometres and the accumulative aggregate operating mileage is over 15 million kilometres. During the period, there have been 18 cases of head-tail collision and no personal injuries or vehicle burning have been reported. Any vehicles undergoing multiple crashes and spinning like the one in the 5.26 traffic accident will result in great danger for the passengers and driver, even gasoline-powered vehicles might burn.

3. Other information

At present, the car involved in the accident is being retained by the Traffic Police Department of Shenzhen and the Company is not able to have access to the car. The cause of fire has not been determined and the Company is currently waiting for a further accident examination report from the Traffic Police Department of Shenzhen. The Company will pay close attention and cooperate actively with the relevant authority for investigation.

The Company strongly believes that this incident will not have any negative impact on the development of our new energy industry.

By order of the board of

BYD Company Limited

Wang Chuan-fu

Chairman

Hong Kong, 29 May 2012

As at the date of this announcement, the Board of Directors of BYD Company Limited comprises Mr. Wang Chuan-fu being the executive Director, Mr. Lu Xiang-yang and Mr. Xia Zuo-quan being the non-executive Directors, and Ms. Li Dong, Mr. Wu Chang-qi and Mr. Li Lian-he being the independent non-executive Directors.

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