Qiao Xing Universal Telephone Inc. Receives Version 2000 ISO 9001 Certificate

Business Wire, August 31, 2001

Business Editors & Telecommunications Writers

HUIZHOU, China--(BUSINESS WIRE)--Aug. 31, 2001

Qiao Xing Universal Telephone Inc. (Nasdaq:XING), the second-largest telephone manufacturer and marketer in China, today announced that the British SGS Accreditation Co., Hong Kong Branch, has granted Qiao Xing the Version 2000 ISO 9001 Certificate.

Rui Lin Wu, chairman of Qiao Xing Universal Telephone Inc., stated: "In August 1995, Qiao Xing became the first telephone manufacturer in China to receive the ISO 9001 Quality System Accreditation award. Based on the superior quality of Qiao Xing's telephones, the company has grown to become the second-largest telephone maker in China. Facing such historic opportunities like China's entry into WTO, our belief and strength in quality should certainly gain the recognition from the market and potential users."

Compared with Version 1994, Version 2000 ISO certificate includes significant new items, including enterprise planning, internal communication, human resource management, customer research and service provision. It also attaches more importance to its practicability. Qiao Xing has a 12-person internal assessment team who have all received relative qualification certificates from the British SGS Accreditation Co.

About Qiao Xing Universal Telephone

In August 1995, Qiao Xing Universal Telephone Inc. became the first telephone manufacturer in China to receive the ISO 9001 Quality System Accreditation award. The company currently produces 165 models of corded telephones and 25 cordless models. Its sales network is extensive, with 1,350 retail store locations throughout China. Qiao Xing is currently the second-largest telephone manufacturer in China.

This press release contains "forward-looking statements" regarding future business opportunities and activities. Such forward-looking information involves important risks and uncertainties that could significantly affect future results. These risks and uncertainties include, but are not limited to, those relating to economic, political, legal and social conditions in the People's Republic of China, dependence upon key management personnel, competition, material factors relating to the operations of the business, and domestic and global general economic conditions.