Exhibit 99.1


                            CHINA BAK BATTERY, INC.

Company Contact:                                     Investor Relations Contact:
Jim Groh                                             Matt Hayden/Brett Maas
(843) 342-7809                                       (843) 272-4653
jim@bakbattery.com                                   matt@haydenir.com


                 CHINA BAK BATTERY ENTERS INTO AGREEMENT FOR $43
                       MILLION PRIVATE PLACEMENT FINANCING

SHENZHEN, China & DALLAS - September 14, 2005 - China BAK Battery, Inc. (OTC BB:
CBBT) today  announced  that it has entered into a definitive  agreement for the
private  placement of 7.9 million shares of common stock at a per-share price of
$5.50 with qualified institutional investors. Gross proceeds to the Company from
the sale of the  securities  will be  approximately  $43  million.  The  Company
expects to close the  transaction on or prior to September 16, 2005,  subject to
customary conditions.

The shares being sold have not been registered under the Securities Act of 1933,
as  amended,  or any  state  securities  laws,  and  will be  sold in a  private
transaction  under Regulation D. Unless the shares are registered,  they may not
be offered or sold in the United States except pursuant to an exemption from the
registrations  requirements  of the  Securities  Act of 1933,  as  amended,  and
applicable state laws.

This communication  shall not constitute an offer to sell or the solicitation of
an offer to buy, and shall not constitute an offer,  solicitation or sale of any
security.

Forward-Looking Statements
This press release contains certain statements that may include "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All
statements,  other than  statements of  historical  facts,  included  herein are
"forward-looking   statements."  These  forward-looking   statements  are  often
identified  by the  use of  terms  and  phrases  such as  "expect,"  "estimate,"
"project," "plan," "believe,"  "achievable,"  "anticipate" and similar terms and
phrases.  Although the Company believes that the expectations reflected in these
forward-looking  statements are reasonable,  they do involve assumptions,  risks
and uncertainties,  and these expectations may prove to be incorrect. You should
not place undue reliance on these forward-looking  statements,  which speak only
as of the date of this press release.

The Company's actual results could differ  materially from those  anticipated in
these forward-looking  statements as a result of a variety of factors, including
those  discussed  in the  Company's  periodic  reports  that are filed  with and
available  from the  Securities  and Exchange  Commission.  All  forward-looking
statements  attributable  to the  Company  or  persons  acting on its behalf are
expressly  qualified in their entirety by these factors.  Other than as required
under the  securities  laws,  the Company does not assume a duty to update these
forward-looking statements.