NEWS RELEASE

CONTACT: Gary S. Maier

Maier & Company, Inc.

(310) 442-9852

HIGHWAY HOLDINGS RECEIVES NEW OEM ORDER FROM COLEMAN

HONG KONG — October 22, 2007 — Highway Holdings Limited (Nasdaq:HIHO) today announced it has received an initial order for 50,000 battery-operated air pumps from The Coleman Company, Inc., located in Wichita, Kansas. Terms were not disclosed.

This order follows the receipt of a tooling order in June. As previously announced, Highway Holdings commenced its OEM relationship with Coleman early in 2007 with an initial order to produce radio units for another Coleman product line. The air pumps are being produced at the company’s Golden Bright Plastic Manufacturing subsidiary, an operation acquired by Highway Holding in September 2006.

“This new OEM order highlights management’s focus on expanding its U.S. customer base and effectively demonstrates to current and prospective customers the company’s diverse manufacturing capabilities and quality. We are gratified by the confidence of Coleman and look forward to supplying higher production volume for the air pump, as well as additional business opportunities,” said Roland Kohl, president and chief executive officer.

About Highway Holdings:

Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies and complete products. It also manufactures finished products, such as LED Lights, radio chimes and other electronic products. Highway Holdings is headquartered in Hong Kong and operates four manufacturing facilities in the People's Republic of China.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company’s various filings with the Securities and Exchange Commission, including without limitation, the company’s annual reports on Form 20-F.

# # #