Disposal

China Shoto plc

("China Shoto" or "the Company")

Disposal of 59% stake in Yangzhou Zhenghe Power Supply Co., Ltd

China Shoto plc (AIM: CHNS), a leading Chinese battery producer and the largest supplier of back-up batteries to China's telecommunications operators, today announces that following the announcement made on 16 August 2010, the Company has sold its 59% interest in the Yangzhou Zhenghe Power Supply Co., Ltd (Yangzhou Zhenghe), for a cash consideration of RMB 4 million. The Company acquired Yangzhou Zhenghe in 2006 for a total consideration of £216,000.

Chairman Yang Shanji said: "The Board has made this decision as part of wider cost control measures. Yangzhou Zhenghe accounted for approximately 3% of the Company's total production capacity, before its closure last August. The sale of our interest will permit a greater focus on more efficient production lines as such overall production is expected to remain at current levels."

-Ends-