Hollysys Automation Technologies Elects Two New Independent Directors and Announces Corporate Changes

Jul 2, 2008

Beijing, China – July 2, 2008 – Hollysys Automation Technologies, Ltd. ("Hollysys" or the "Company"), a leading provider of industrial automation and control systems for the industrial, rail and nuclear power sectors in the People’s Republic of China, today announced that it has elected two new directors, Mr. Qingtai Chen and Dr. Jianyun Chai, bringing the total number of members on the Company’s Board of Directors (“Board”) to nine. Both, Mr. Chen and Dr. Chai will serve on the Board as “independent directors” of the Company, as defined by Rule 4200(a)(15) of the Marketplace Rules of The Nasdaq Stock Market, Inc.

Several of the Company’s Board members are accomplished professionals both in and outside of China, with doctorates in engineering and capital management. Their personal achievements have far reaching influence in the Automation, Distributed Control, Nuclear Power, Railway Digital and Information Systems industries, among others. The two new Independent Directors are Mr. Qingtai Chen and Dr. Jianyun Chai.

Mr. Qingtai Chen worked for the Dong Feng Motor Group for over 22 years and served as its General Manager. While employed by the Dong Feng Motor Group, Mr. Chen also served in various positions, including as a member of the First Session of the Monetary Policy Committee of the People’s Bank of China, as a deputy director of the State Council Economic and Trade Office, as a deputy director of the State Economic and Trade Commission, and as a deputy director of the Development Research Center of the State Council. Mr. Chen also served from 2000 to 2006 as an independent director of Sinopec Corp. Mr. Chen received his Bachelors of Science degree in power and dynamics engineering from Tsinghua University and has been recognized as a National Excellent Entrepreneur and National Economic Reform Talent in China. Mr. Chen currently serves as a standing member of National Committee of the Chinese People’s Political Consultative Conference and as the Dean of the School of Public Policy and Management at Tsinghua University. He also serves as an independent director for the Bank of Communications, which is listed on both Shanghai Stock Exchange and Hong Kong Stock Exchange, and as an independent director of Mindray Medical International Limited, which is listed on New York Stock Exchange.

Dr. Jianyun Chai is currently a professor and the head of the Institute of Power Electronic and Electrical Machine System at Tsinghua University in China. Before he joined Tsinghua University as an Associate Professor in 1999, Dr. Chai spent eight years working in the motor and information industries in Japan. Dr. Chai is also a member of various societies and organizations, including the China Renewable Energy Society, the Chinese Society for Electrical Engineering and the Chinese Wind Energy Association. Dr. Chai received a Bachelors degree and a PhD in Electrical Engineering from Tsinghua University in 1984 and 1989, respectively.

Formally Establishes Three New Committees; Announces Accounting and Legal Firm Changes

Hollysys also announced in recent filings that its Board of Directors (the “Board”) has formally established three committees, namely an Audit Committee, a Compensation Committee and a Corporate Governance and Nominating Committee. Each Board committee is now comprised of three Independent Directors.

Hollysys has also announced its selection of BDO McCabe Lo Limited (“BDO McCabe”) as the Company’s independent registered public accounting firm, and Thelen Reid Brown Raysman & Steiner LLP (“Thelen”) as the Company’s new US legal counsel. BDO McCabe is the BDO member firm in Hong Kong with over 400 staff and was established since 1981. It is a part of the BDO International network which combines international expertise with the best available local business and advisory services.

Thelen is an international law firm with approximately 550 attorneys and is widely known for its premier practices in the areas of Construction, Corporate/Finance, Real Estate and Structured Finance, Technology, Media, and Communications, Energy and Complex Litigation. Thelen’s China practice group, in particular, has represented organizations within a wide range of industries, including high technology, manufacturing, the Internet, e-commerce, banking, securities, energy, construction and real estate. The group also handles corporate transactions, including mergers and acquisitions, private equity and venture capital, international joint ventures, foreign investment and corporate governance. The Company believes that Thelen will be a valuable resource as the Company seeks to implement its business strategies and commercial objectives in the coming years.

About Hollysys

Hollysys Automation Technologies has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous 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. Hollysys adopts the philosophy - "concern the customers with sincerity", with the capabilities of technology innovation, it is focusing on industrial automation, covering digital railway signal & information systems, e-government, motor drive & transmission and safety control of nuclear power reactors. To know more, start here: www.hollysys.com.

For further information: Jennifer Zhang Investor Relations & Corporate Communications P.R. China: +86(10) 5898-1386 United States: +1(646) 593-8125 Email: mailto: investors@hollysys.com