China Aerospace International Holdings Ltd. Expects Decrease in Profit for the Year Ended December 31, 2012. The Board of Directors of China Aerospace International Holdings Limited informed the shareholders of the Company and potential investors that, based on the Company's preliminary estimation, it is expected that the profit of the Company for the year ended December 31, 2012 may decrease as compared to that of 2011. The reason of the decrease in profit was mainly due to, in comparing to 2011, no material one-off non-recurring income was recorded by the Company in 2012.

Instead, the cash flow and the operations of the Company remain normal. Actual result figures will be announced upon the completion of the audit by the Company's auditor and the approvals of both the Audit Committee and the Board.