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Press Release

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1st May 2000, Huizhou, China

Qiao Xing Universal Telephone Inc. Receives Additional $3.9 Million Order From Binatone, U.K.

Qiao Xing Universal Telephone Inc, the leading seller of telephones in China, today announced that it had received an additional $3.9 million order for 100,000 sets of its digitally enhanced cordless telephones (DECT) from Binatone Electronics International Ltd.

Binatone placed an initial order in February 2000 of $7 million for the company's telephones. Binatone, one of the largest telecommunications companies in the United Kingdom, is a leading provider of telephone equipment and services in Great Britain. Shipments on this additional order are scheduled to begin by September 2000.

Referring to the additional order, Riu Lin Wu, chairman of the board of Qiao Xing, commented: "We are pleased that Binatone has chosen to increase their orders for our products and look forward to supporting their continuing growth in the European market.

"Binatone's order for our digitally enhanced cordless telephones also indicates growing demand for high voice quality and reflects our ability to meet that demand in a cost-effective way.''

In August 1995, Qiao Xing Universal Telephone 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.

Ranked No. 2 in telephone sales in China for 1997 and 1998, the company achieved the No. 1 sales ranking for 1999.

This news release contains "forward-looking statements'' regarding future revenues and operating information and their impact on future results. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, actual results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. 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.

Further Information

  Qiao Xing Universal Telephone Inc., Huizhou
     Jeff J.F. Feng, 
     tel		(011) 86-752-2808-188
     fax               (011) 86-752-2803-101
     Silverman Heller Associates, Los Angeles
     Dan Matsui or Eugene Heller,
     tel		 310/208-2550
     fax               310/208-0931

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