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With its subsidiary having signed two major agreements signed in March, China America Holdings (OTCBB: CAAH) should have investors monitoring the stock closely as the company has just announced its third. Yesterday after the markets closed, the company issued a press release announcing that its 56% owned China based subsidiary Shanghai AoHong has renewed its agreement with FAW-Mazda Motor Sales Co. Ltd., a joint venture between Mazda and China FAW Group Corporation, to supply the company with refrigerant G134A Product for automobile air conditioning systems.

Good news for the company as the press release states that this agreement generated sales of approximately $345,000 for the calendar year of 2008 and is the second renewal for 2009 for Aohong within the FAW family of companies. Management will look to build on this agreement and make further inroads with FAW to supply its products.

China FAW Group Corporation is a pioneer in China's auto industry and the country's leading automaker. FAW manufactures light, medium, and heavy-duty trucks, cars, buses, and mini-vehicles in China. China FAW produces more than seven million vehicles per year. FAW's manufacturing facilities are located throughout China. China FAW has joint venture operations with numerous automakers including Volkswagen, Mazda, and Toyota, offering additional sales opportunities for Aohong.

Speaking on behalf of the company, Shaoyin Wang, CEO of China America Holdings, commented, "We are extremely pleased to have renewed our agreement with FAW-Mazda. We believe this G134A supply contract again confirms our growing relationships with China FAW Group, the largest automobile manufacturer in China. At the same time, China America is working diligently to secure additional purchase orders with sizeable manufacturers as the year goes on. We are confident that our bonds with China FAW Group demonstrate our ability to retain repeat customers, and contracts like this will certainly help ensure our business prospects for fiscal 2009 and going forward."

The stock closed yesterday at around Two cents a share.

For an in-depth profile of China America Holdings, visit: http://www.wallstreetnewsalert.com/view-company-profiles.php?profile=CAAH_032509.

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