Hollysys Automation Technologies Announces Signing of $19.9 Million Railway Control Systems Contract

Beijing, China – January 24, 2008 – Hollysys Automation Technologies, Ltd. ("Hollysys" or "the Company") today announced that it has been awarded a contract by the People's Republic of China (PRC) Ministry of Railways for the installation and maintenance of CTCS-2 class ATP On-board Train Control Systems on high speed trains operating on 200km/hr lines. These systems receive and record rail line data, oncoming speed limits, operation status, and route information from the ground. The contract value amounts to RMB144 million, or US$19.9 million, will be commenced in March 2008, and is expected to be completed by February 2010.

Dr. Wang Changli, Hollysys' Chief Executive Officer commented, "We are committed to provide the PRC Ministry of Railways with safe and secure automation solutions during its expansion. This signal device is a vital element to these high speed trains, as it enhances optimal operating performance, safety and security."

About Hollysys

Hollysys 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.