This presentation may containforward -lookingstatements within the meaning of the PrivateSecuritiesLitigationReform Act of 1995. Forwardlookingstatements are statements that are not historical facts. Such forward -lookingstatements, based upon the current beliefs and expectations of HLS' management, are subject to risks and uncertainties, which could cause actual results to differ from the forwardlookingstatements. The followingfactors,amongothers, could cause actual results to differ from those set forth in the forward -lookingstatements:businessconditions in China; continuedcompliance with governmentregulations;legislation or regulatoryenvironments,requirements or changes adverselyaffecting the businesses in which HLS is engaged;cessation or changes in governmentincentiveprograms: potential trade barriersaffectinginternationalexpansion;fluctuations in customerdemand;management of transitions to new markets;intensity of competition from or introduction of new and superiorproducts by other providers of automation and control systemtechnology; timing, approval and marketacceptance of new productintroductions; as well as other relevant risks detailed in HLS' filings with the Securities and ExchangeCommission. The information set forth herein should be read in light of such risks. HLS does not assume any obligation to update the informationcontained in this presentation or filings.

* All $ amounts in this presentation are in USD unlessotherwise noted

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What HLS is..

• One of the leading and fastest growing automation control systems companies  in the  world;  ready  to  expand internationally
• The largest Chinese domestic developer and provider ofautomation technology
• The only Chinese domestic contractor qualified to design andproduce control systems for the Nuclear Power Industry
• One of only five Chinese companies qualified to design andproduce control systems for the Ministry of Rail in China
• The major domestic developer of automated control systemsfor the burgeoning subway industry in China

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• HLS Systems International, Ltd. (OTCBB: HLSYF) is the result of thebusiness combination between Chardan North China Acquisition andHollySys in September 2007
• Shares Outstanding: 42 million
• Market Cap.: $323 million (share price as of Mar 27: $7.70)
• After excluding merger and other expenses associated with the transaction with Chardan North, HLS anticipates to achieve ComprehensiveIncome of $23 million for the calendar year ended December 31, 2007

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As additionalconsideration, former shareholders of HollySys, on an all-or-none-basis each year, will be issued additional shares of common stock if HLS achievesrespective after-tax profits:

Year Ending	12/31	After-Tax Profit		Issued Shares
2008		$	32,000,000	2,000,000
2009		$	43,000,000	2,000,000
2010		$	61,000,000	2,000,000
2011		$	71,000,000	3,000,000

•HLS operates on a 6/30 fiscal year

•After-Tax Profit refers to ComprehensiveIncome and excludesexpensesrelated to merger with CNCA,namely the Notes Interest& Amortization of Discount

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OTC: HLSYF

FinancialParameters

     Profitable and cash flow positive Poised for accelerating future growth

Increasing industrial automation in China
Market expanding nationally at >15%
Years of investment in know-how and IP ready to pay off
	Nuclear
	Rail
	Subway and Light Rail
	PLC
	Motors and servos
	New International contracts and initiatives
Potential acquisitions of synergistic competitors and/or vertical suppliers

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OTC: HLSYF

Backlog and New Contracts

June	2006	$ 87	million
June	2007	$102	million
September 2007		$ 112.3		million
December 2007		$121.4		million

The currentbreakdown for backlog by segment:

• $47 million related to Industrial Automation & Control
• $72.4 million related to System Integration projects for Subway & Rail
• $2 million related to miscellaneous contracts

Subsequent & additional major contracts:
•	CTCS-2 class ATP On-board Train Control Systems	$20	Million
•	Nuclear Power Plant Control Systems for 6 reactors	$29	Million
	(being estimated amount of subcontracts from JV company)

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OTC: HLSYF

Revenue and IncomeGrowth

* Excluding$6.4 million expense related to business combination with Charda n North China Acquisition Corp.

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CompetitiveLandscape

HLS has been one of Top 3 automation control systemsproviders in China for the past 3 years (among ABB, Siemens,Emerson)

HLS Cost structure< 35% that of internationalcompetitors

HLS Quality equal to or higher than competitors

• BASF qualified HLS as approved vendor after extensive due diligence
• HLS adopts latest chip technology for every new products
• Platforms designed to integrate with other’s devices
• Open architecture permits quick turnaround

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CompetitiveAdvantages

Impressive track record

•Success in market and close proximity to customers has created a long-term, loyal customer base in China

•Long term investment in industries with safety concerns just starting to pay off

•Tremendous barrier to entry

Integrated,efficient& scalableautomationsolutions

•The only fully integratedvendor based in China

•Designs with proprietarysoftware,manufactures,installs,services& maintains

Low cost production

•HLS offers price competitiveproducts over internationalcompetitors

•R&D only costs about 20% of that of internationalcompetitors

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CompetitiveAdvantages

Technologybased

•Has 39 patents and 15 proprietarysoftwarelicenses

•Technology meets or exceeds that of its internationalcompetitors

•Technology is 3-5 years ahead of its Chinesedomesticcompetitors

High barriers to entry

•Competes in many highly regulatedindustries

•HLS is one of five approvedsuppliers to China's rail automationindustry

•HLS is only domesticproducer of automationcontrols for nuclear industry

HLS sets the standard

•HLS has set de facto automationstandards in a variety of industries includingnuclear and rail

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AutomationControlMarket Size

Global

• Estimated to be $70 billion in 2008*
• Dominated by few large players

China

Estimated to grow over RMB 13.1 billion in 2008**
Factors spurring growth
	China is no longer a low cost provider of manpower
	Need to improve product quality to meet international standards
		Forces manufacturers to automate
		Booming economy fueling growth in Industrial Automation Control Systems for infrastructure enhancements

*ARC Advisory Group
** www.gongkong survey, DCS + PLC markets in 2008

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GrowthSectors within China

TraditionalPower

•Power shortages in China (>15% disparitybetween supply and demand)

Petrochemical/Chemical

•190 new projects in China with industrialautomationportion of ~ $5.7B

Traditional Rail

•China currently has -6% of the world’s track but moves 25% of the world's cargo

Light Rail

•China will invest > $62.1 billion to construct at least 55 new subways or city rail systems in next 10 years

NuclearPower

•China has 8 new 1GW reactors under construction and 52 new 1GW reactors in planning stages

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TraditionalPowerSegment

•CAGR historically>10%

•Already a >15% disparitybetween supply and demand

•Increasingefficiency yields more power in same plants with less pollution

•Huge sub-industriesemerging (e.g. automatedemission control devices )

Petrochemical and ChemicalMarkets

•CAGR historically 10% for petrochemical and 20% for chemical

•>190 new projects in China alreadyfunded

•Industrialautomationportionestimated to be >$5.7 billion

•Substantialmodernization of existing plants in order to improve efficiency and reducepollution

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HLS is the leadingplayer in both traditional and light rail markets

•Controls speed, track changes,stoppages,distancebetween trains

•Very high barrier to entry / Safety is a major concern

•Work is awardedprimarily based on track record in China

Traditional Rail Market
	China currently has 6% of the world’s track moving 25% of the world’s cargo
	Shortage creates massive influx of new investment by central government
		Over next 3 years China will add 6,000 miles of track and upgrade an additional 6,000 miles
		Government will spend an additional $8.6 billion in signal and automation controls,from 2011-2015
Light Rail Markets
	Government expects to invest >$62.1 billion to construct at least 55 newsubways or city rails over next 10 years
	Covers 1,500 km in metropolitan areas such as Beijing, Shanghai, Guangzhou,Tianjin, etc.

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HLS is the only Chinesesupplier of Nuclear Plant ControlSystems

•Information control center of power plant; monitors,controls and protectsequipment

•Providedsubassemblies for early nuclear power plants built in China

HLS has JV with China GuangdongNuclear Power Group

•Contract for 6 reactorsrecentlyawarded

Significantgrowthopportunities for HLS

China - Government will construct or plan to construct 60 new 1GW nuclear power reactors
	From 2008 to 2014, HLS expected to have substantial revenue from new nuclear plants
	Maintenance contracts will provide long term regular income
International — HLS will leverage its high-tech, low cost, proven system
	Many new plants on the drawing board worldwide
	Over 200 existing units under operation all need their automation systems upgraded

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First Chinese -designed& manufactured large scale PLC product

Utilizes state-of-the-art technologies

The LK series mergesmodern PLC with advanced DCS

•Meets the requirements of system integrators worldwide for both continuous and discrete applications

Market in China estimates >$800M, and growing at 15% per year

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Major profit contributor for most large international competitors

New PLC, when coupled with HLS state-of-the-art Servo Motors and Drive technologies, enables the creation of a New Automation and Drive (A & D) Business Unit

The A&D Unit will provide factory automationcustomers and systemintegrators with one-stop shopping

Integrated solutions using its own motors, servos, and controllers for any discrete control application
	Textile machines, high level printers, packaging machines, assembly lines, robots, automated warehouses, etc.

A&D will begin producingsignificantrevenue in 2008

•Expect to generate over $60m in revenues with 35% -40% gross margin within next 5 years

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InternationalExpansion

HLS has historicallyfocused on China

•In next 5 years, internationalexpansion will augment growth in China

•Present product portfolio well suited for international clients

Strategicpositioning

•HLS uses its low-cost/high -quality platform to win contractsagainstforeign suppliersworldwide

Westernmarketexpansion

•Currently have multipleprojects in India and South East Asia

•Recently set up new headquarters in Singapore with ex-GM of GE's SE Asia control systems unit

•Will partner with companies that have existingrelationships in the West

•BASF has chosen HLS as a preferred vendor

•In discussion with other large US and European -based companies

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SeasonedSeniorManagement

Dr. Wang Changli - President& CEO

Pioneer in developingautomation and control technologies in China Over 17 years of experience in automation and controlsindustry Author of multiplepublications on automation and control technologies Vice chairman of China AutomationIndustryAssociation Ph.D. in Automation from LancasterUniversity in the UK

Qiao Li - Chairwoman

PreviouslyDirector of Hi-Tech enterprisedevelopmentdepartment of Beijing Hi-Tech Park Vice President of Beijing Hi-Tech VentureCapital from 1998-2003 Master’sdegree in BusinessAdministration,CapitalUniversity of Economics and Business

Dr. Wang Ben - CFO

Recently joins HLS as the CFO

Over 20 years of financial and business management experience

Held executivepositions in variouscompanies in the PRC, Hong Kong and the US M.A. in Economics and Ph.D. in InternationalFinance from NortheasternUniversity,Boston

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Over 1,800 employees
•1,400 are engineers
400 R&D engineers
High employeeretention
•In past 5 years, less than 10%
of engineers have left HLS

Two major manufacturing and designcenters

•Beijing and Hangzhou

10 regional sales offices

•Engineering know-how at the sales level allows knowledge based early input into design process

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InvestmentConclusions

LargestAutomation& ControlCompany in China

Track Record of Success

HighlyProfitable and Cash Flow Positive

Experienced& MotivatedManagement Team Poised for Growth

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