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On May 13, 2007, I wrote a letter to Mr. Teo Tong Kooi, President, and Mr. Philip Ting Sii Tien, CFO, of China Yuchai International Limited (NYSE:CYD), regarding their response to my open letter to the board. The full letter follow:

May 13, 2007

Mr. Teo Tong Kooi
President
Mr. Philip Ting Sii Tien
Chief Financial Officer
China Yuchai International Limited
16 Raffles Quay #26-00
Hong Leong Building
Singapore 048581

VIA FACSIMILE AND EMAIL

Gentlemen:

I am in receipt of your letter dated May 9, 2007 in response to my correspondence addressed to the Board of Directors dated April 30, 2007. I am encouraged by your admission “to continually improve disclosure and follow policies that are designed to be in the best interests of the Company’s shareholders.” I look forward to observing senior management of the Company actively focus on my proposals in future public filings; with special emphasis on the first quarter’s report of 2007 scheduled for Monday, May 14, 2007. I shall also be analyzing the earnings release of Hong Leong Asia on Tuesday, May 15, 2007 and examining the distinction between the two companies reporting efforts. At this time, I would like to urge executive management to discuss my proposals in the upcoming earnings reports; and not wait for the Annual Report on Form 20-F, due June 30, 2007. Shareholders have been extremely patient with regard to requesting more disclosure from the Company; and now as it appears that the bottom of the cycle is now past, superior efforts are now obligatory by management to deliver.

I would like to alert executive management to the following website:
http://www.financialrealtime.com/stockmarketnews/symbols.jsp?symbol=cyd

I do not know who is accountable for these news releases, but it is clearly apparent that your main operating subsidiary, Guangxi Yuchai Machinery Co. is making outstanding progress to achieve Mr. Yan Ping’s company goals. I strongly believe CYI management could benefit from closer cooperation with its Chinese partner and jointly, publicly release future company news and milestones.

If the current and past policies of the Company are not altered, with the best interests of shareholders AND the Company combined, I shall continue on my quest to advocate changes by formally filing investor proposals, now due by May 31, 2007.

I accept your invitation to conduct a formal call with the executive management team to discuss the Company’s future goals after the public release of first quarter earnings. Please contact me at your earliest convenience to schedule this conference call.

Sincerely,

Peter A Delgado II
Principal
Threshold Capital Corp

Source: Further Correspondence With China Yuchai International Limited