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Hollysys Automation Technologies, Ltd. - Pantech 21

Original Press Release

Hollysys Automation Technologies Announces the Successful Operation of Its Proprietary Distributed Control System in Yangjiang Nuclear Power Plant

Press release date: April 1, 2014

BEIJING– Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced that its proprietary HOLLiAS-N Distributed Control System ("HOLLiAS-N DCS") was successfully applied to Unit 1 of Yangjiang Nuclear Power Plant ("Yang jiang NPP") and went into commercial operation on March 26th, 2014.

Hollysys' HOLLiAS-N DCS is one of the high-end DCS products Hollysys developed for 1GW level nuclear power plant, it is also named as the "Center Nervous system" used for the nuclear power plant operation's automatic control and operational monitoring during its running process. It requires highly for its technology complexity and reliability. Hollysys' proprietary HOLLiAS-N DCS successfully passed a series of 168 hours rigorous tests before the commercial operation of Unit 1 of Yangjiang NPP and it met all the parameters and delivered outstanding performance.

China now has 18 operational nuclear power reactors with the installed gross capacity reached 15.86 GW. Yangjiang NPP is the sixth nuclear power plant in mainland China. In addition to Unit 1 of Yangjiang NPP, Unit 2 of Yangjiang NPP is preparing for testing, and Unit 3 is installing and adjusting equipment. Unit 4, 5 and 6 are under construction, all 6 units are expected to be in operation in 2017.

Hollysys' management commented, "We are very pleased that our proprietary HOLLiAS-N DCS is successfully applied in Yangjiang Nuclear Power Plant, which again validates our industry leading technology and capability. We are also glad to see the accelerated construction of nuclear power plants to address the environment protection related issues and to assist the sustainable development of the economy. With our solid position in China's nuclear power automation and control industry, we will continue to benefit from China's nuclear power development, and create value for our shareholders."

About Yangjiang Nuclear Power Plant
Yangjiang nuclear power plant, which is located in Yangjiang city in the west coast of Guangdong province. Yangjiang nuclear power plant is jointly invested by China General Nuclear Power Group Co., Ltd., China Power Investment Corporation and Dalian Construction Investment Group Co., Ltd. It is planned to build 6 nuclear power generating units. With Unit 1 went into operation, the rest of 5 units which are adopting CPR 1000 nuclear generating technology as well with some technological improvements, are expected for operation in 2017.

About China General Nuclear Power Corporation (CGNPC)
China General Nuclear Power Corporation ("CGNPC") is a state-owned nuclear power corporation under the supervision of Assets Supervision and Administration Commission (SASAC) of the State Council of China. CGNPC was established in 1994 with nuclear power as its core business. With CGNPC as its core enterprise, China General Nuclear Power Group (CGNPG) is comprised of more than thirty wholly-owned or controlling subsidiaries.

About China Techenergy Co., Ltd. (CTEC)
China Techenergy Co., Ltd. (CTEC) is a 60/40 joint venture owned by China Guangdong Nuclear Power Holding Co., Ltd. (CGNPC) and Beijing Hollysys Co., Ltd. (Hollysys). Founded in October 2005, the company is engaged in providing automation and control related engineering design, system integration, and technical services for nuclear industry. CTEC has the permit granted by National Nuclear Safety Administration of China to design and manufacture nuclear safety-level automation and control systems.

About Hollysys Automation Technologies, Ltd. (NASDAQ: HOLI)
Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 3,800 employees with nationwide presence in over 60 cities in China, with subsidiaries and offices in Singapore, Malaysia, Dubai, India, and serves over 5,000 customers more than 20,000 projects in the industrial, railway, subway nuclear industries in China, South-East Asia, and the Middle East. Its proprietary technologies are applied in its industrial automation solution suite including DCS (Distributed Control System), PLC (Programmable Logic Controller), RMIS (Real-time Management Information System), HAMS (HolliAS Asset Management System), OTS (Operator Training System), HolliAS BATCH (Batch Application Package), HolliAS APC Suite (Advanced Process Control Package), SIS (Safety Instrumentation System), high-speed railway signaling system of TCC (Train Control Center), ATP (Automatic Train Protection), Subway Supervisory and Control platform, SCADA (Surveillance Control and Data Acquisition), nuclear power plantautomation and control system and other products.

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