In the second quarter ended June 30, 2011:
     
        --  Net revenues increased 130% to $126.2 million compared with $54.8  million a year earlier, led by a 133% jump in sales of imported luxury  autos to $123.1 million;
        --  Net income attributable to shareholders grew 23% to $2.3 million, or  $0.12 per share on 19.2 million weighted average shares, compared with $1.9 million or $0.10 per share on 18.1 million weighted average shares in the 2010 second quarter;
        --  Once again the Company's web-based advertising services generated the largest contribution to operating income in the quarter, as year over year revenues grew 71% to $2 million and contributed $1.5 million to second quarter income from operations, outpacing the $1.1 million contributed by sales of automobiles. All other auto related services  businesses also generated increased operating income in the quarter compared with the prior year.
        
  
For the six months ended June 30, 2011, revenues reached $207 million, an increase of 90% from $109 million a year earlier. Net income attributable to shareholders grew 29% from $3.4 million in the 2010 first half to $4.4 million or $0.23 per share compared with $0.19 per share a year earlier. The largest contributor to operating income in the six month period was web-based advertising services. Revenues grew 77% to approximately $4 million from $2.2 million in the prior year and generated $3 million in operating income in 2011, compared with a $2 million contribution from auto sales.

Highly Profitable Auto-related Services

"Once again," stated Mr. Tong Shiping, CEO and Chairman of the Company, "roughly two-thirds of our operating profits in the quarter were contributed by our auto related services, in particular, the very rapid growth we have continued to see in our Web-based Advertising Services, as we pursue our goal of becoming the leading automobile portal in China."

Mr. Tong added, "A key element in our success was the continuing successful integration of our www.goodcar.cn site into our www.cali.com.cn portal, where its popularity continues to grow with China's drivers for the discounts delivered to members. Going forward, we will expand 'goodcar' in line with the growth plans for our other sites, which we expect to expand from serving the information needs of consumers in 35 cities to 60 cities reaching more than 70% of China's auto buying public."

"In this outstanding quarter we took particular advantage of the very strong market in China for luxury imported autos, and continued our shift to the potentially more profitable high end of the market," stated Mr. Tong. "Reflecting this," he added, "the average price of the vehicles we sold in the quarter increased 41% year over year from $77,507 to $109,029 as unit sales increased 66% to 1,129 vehicles, together generating the 133% year over year increase in revenues."

As of June 30, 2011 the Company's facility line of credit with several of China's leading banks was $135 million, more than a doubling of the credit line since the end of 2010. This increase enabled continuing growth in the Company's auto-related financing services for imported auto dealers and, more recently, a growing number of domestic dealers. Mr. Tong commented, "We believe the very safe, short term inventory financing we provide to dealers will help open the door to developing other new, profitable services for them. We also believe having access to these credit lines in a period when China's banks have been tightening their loan policies provides us with a strong competitive advantage and reflects very well on our Company's financial strength and growth outlook."

Successful Above Market Raise for Expansion in the Domestic Auto Sector

On July 7, the Company was pleased to announce a $5.25 million private equity placement of 3 million unregistered shares at an above market price of $1.75 per share, which it expects to utilize in connection with plans to acquire and develop the largest domestic auto mall in its home city of Tianjin.

The Company saw the willingness of the accredited investors to acquire shares above their price in the market as a strong vote of confidence in the Company's shares which Mr. Tong believes are, "significantly undervalued mainly because of the prevailing negativity temporarily affecting all Chinese shares in the U.S."

In its news release on the equity sale, the Company also took the opportunity to counter any concerns about the growth potential of the Chinese auto market following its very extraordinary 32% growth in 2010. It cited the views of close observers of the market who believed an anticipated drop in oil prices and increased liquidity would spur the world's number one auto market to double digit growth levels in the second half of 2011, following the roughly 6% growth in passenger auto sales in the first half of the year.

The Company also announced plans for a significant new expansion into China's domestic auto market on the heels of its recent successes in growing domestic auto related services, such as its www.at160.com website for domestic auto buyers, and www.goodcar.cn for domestic auto drivers. Specifically, the Company expects to acquire a large auto mall in Tianjin that will sell over 70 different car models and become the largest mall in the city. The Company also believes the mall will be a key element in plans to develop and grow a variety of new online auto-related services for the very large and growing domestic auto market.

Continuing Strong Growth Ahead

"Over the past several quarters since becoming a publicly traded Company, I believe CALI has clearly and openly demonstrated that not only is it on an exciting growth track, but that management is very capable of developing well grounded growth strategies and successfully executing them," Mr. Tong stated. He continued, "As we enter the second half of 2011, it may well be looked on as the beginning of one of the most exciting new chapters in the Company's history, as we take another giant step forward, this time into the very large and growing domestic auto market in China. The opportunity is there for us and we intend to seize it, first with the acquisition and development of the domestic mall, and then with the further rapid expansion of our web-based auto-related services serving the full spectrum of auto sector buyers, dealers and drivers."

"As we move ahead," Mr. Tong added, "we will continue to be fully transparent and firmly believe we will be among the top Chinese companies to emerge strongly from this period of investor uncertainty."