Mr. Chen Qi, the Chief Director and Mr Paul Yuan, the Managing Director of Dalian KTL Machinery Co., Ltd paid a visit on KMT in Sweden from Feb 3 to Feb 9, 2007.

During the visiting, they were showed around the KMT factories and Volvo facilities, They also had the conference with Mr. John Westberg, the president of KMT Lidoping AB and Mr. Lars Bergstrom, the CEO of KMT Group. Mr Chen Qi and Mr Lars Bergstrom signed the final Joint Venture Contract in the head office of KMT group on behalf of KTL and KMT separately. The joint venture company will involve in the high frequency spindles production in the People’s Republic of China. It is proposal to provide high frequency spindles to the world wide market as a leading manufacturer of high-end spindle products. The Joint Venture will be Triumph Spindle Technology (Dalian) Co., Ltd, and it will be launched for production in the third quarter of Year 2008 by estimation. KMT has the advantage to produce spindle technology with 40 years experience within the industry, it will provide all the technology support to the joint venture and KTL will provide the manufacturing skill, management skill and network in the domestic machine tool market. We believe the Joint Venture will bring the mutual benefits for both sides in the future.