The NASDAQ Stock Market announced that it will delist the common stock of China Electric Motor, Inc. China Electric Motor, Inc.'s stock was suspended on June 14, 2011 and has not traded on NASDAQ since that time. NASDAQ will file a Form 25 with the Securities and Exchange Commission to complete the delisting for the company. The delisting become effective ten days after the Form 25 is filed.

China Electric Motor, Inc. announced that Mr. Yue Wang has resigned his positions as President and Chief Executive Officer of the company and as a member of the Board of Directors of the company and Mr. Fugui Wang has resigned his position as Chairman and a member of the Board. They also resigned their respective positions with the subsidiaries of the company. The Board has appointed each of Mr. Xiaohui Li and Ms. Xiaoying Zhou to serve as directors. As a result, the Board currently consists of three members -- namely, Mr. Xiaohui Li, Ms. Xiaoying Zhou and Mr. Liang Tang. The Board has appointed Mr. Xiaohui Li to serve as President and Chief Executive Officer of the company and as Chairman of the Board, effective immediately. The Board has appointed a Special Litigation Committee to investigate the claims in the shareholder derivative suit recently brought against certain of the Company's former and current officers and directors and make a recommendation as to whether it is in the best interests of the company to pursue, dismiss or consensually resolve the claims. The Special Litigation Committee currently consists solely of the newly appointed independent director, Ms. Xiaoying Zhou. Mr. Li, age 36, served as Vice President of Changsha Electronic Inc., since March 2006. Mr. Li served as administration manager of Hengfu Property, a real estate development company in China, from March 2003 to March 2006. Mr. Li has had no prior affiliation with the Company. Ms. Zhou, age 34, has served as Senior Financial Management Advisor of Ping An Insurance Company of China Ltd. since March 2005 and served as that company's Customer Relations Manager from March 2000 to March 2005. The newly appointed Special Litigation Committee, currently consisting solely of Ms. Zhou, will investigate the claims in the shareholder derivative suit recently brought against certain of the Company's former and current officers and directors and matters related thereto, and will make a recommendation as to whether it is in the best interests of the company to pursue, dismiss or consensually resolve such claims or other claims related thereto.

China Electric Motor, Inc.(OTCPK:CELM) dropped from NASDAQ Composite Index