SHENZHEN, China, Mar 8, 2007 -- Comtech Group, Inc. (NASDAQ: COGO), a leading provider of customized design solutions for the technology manufacturing sector in China, has announced that it has signed a USD10 million deal to provide optical module solutions to ZTE Corporation, one of the world's top providers of telecommunications and network solutions.

Under the terms of the agreement, Comtech will supply cutting edge optical module solutions to ZTE Corporation, starting from this quarter, with shipments scheduled to be completed by 2007. The contract represents a signification extension of Comtech's existing business with ZTE Corporation.

Jeffrey Kang, President & Chief Executive Officer of Comtech Group, Inc., said, "ZTE has been a client of ours for many years now, and we are delighted that we have expanded our long term partnership with this deal. ZTE's business in the optical fiber networks area has grown dramatically, and we are proud to be able to support this ongoing development.

"This contract also increases our business presence in the telecom sector, which we have built up aggressively in recent years. The demand for solutions to support optical networks looks set to rise, along with the growth of the Chinese economy and the advent of broadband and 3G technologies. In line with the strong global expansion of our telecommunications customer base, we believe we are in an excellent position to take advantage of this growth opportunity. This deal certainly underlines our positive visibility in the telecom space and backs up our confident business outlook for the current year," Mr. Kang remarked.

This contract is the latest to be secured by Comtech in the telecommunications equipment area. In addition to optical solutions, the company also provides module solutions to wireless, broadband and datacom customers. Comtech serves all the major telecom equipment vendors based in China, including both multinational and Chinese corporations.

ZTE's business in the fiber optic sector received a massive boost last October when the company clinched a deal with China Unicom to help the telecom operator place optical lines to connect cities in several Chinese provinces. ZTE also won a contract to provide transmission equipment for a network linking Guangdong province in China to Hong Kong and Macao.

According to statistics from telecoms industry analyst firm Ovum-RHK, ZTE was the fastest growing mainstream optical network vendor between 2004 and 2006. This growth has been consistently supported by Comtech, whose optical module technology will be customized and installed in the national fiber network, further underlining its leadership in the domestic market.

About Comtech Group, Inc.:
Comtech Group, Inc. (NASDAQ:COGO) is a leading provider of customized module and subsystem design solutions in China. The Company believes it acts as a proxy to China's technology industry as it works with virtually all the major ODMs and OEMs in China. Comtech leverages these relationships and combines their IP to create designs that Comtech then sells to electronic manufacturers. These designs allow manufacturers to reduce their time to market for new products and ultimately increase sales. Comtech Group focuses on the digital media, mobile handset and telecommunications equipment end- markets for its customized design modules while also offering business and engineering services to its large telecom equipment vendor customers. Over the last eleven years, Comtech has grown its customer list to include more than 200 of the largest and most well known manufacturers across the mobile handset, telecom equipment and consumer markets in China, covering both multinational Chinese subsidiaries and Chinese domestic companies.

About ZTE Corporation
Founded in 1985, with global headquarters in Shenzhen China, and operations in more than 100 countries, ZTE is a leading global provider of fixed line & mobile telecommunications equipment and network solutions. ZTE's product range is the most complete in the world -- covering virtually every sector of the wireline, wireless and terminal markets. ZTE offers its customers a unique range of services. The company delivers innovative, custom- made products and services to major operators in the world, helping them to achieve continued revenue growth and to shape the future of the world's communications. ZTE commits around 10% of annual revenue to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. ZTE is the fastest growing telecoms equipment supplier in the world, and China's only listed telecoms manufacturer, with shares traded on both the Hong Kong and Shenzhen Stock Exchanges. ZTE was the only Chinese technology and telecoms manufacturer listed in BusinessWeek's 2005 Top 100 Information Technology Companies. For more information, visit www.zte.com.cn.

For further information contact:
Comtech Investor Relations
www.comtech.com.cn/investorinfo.html
communications@comtech.com.cn
H.K.: +852 2730 1518
U.S.: +1 (646) 291 8998
Fax: +86 (755) 2674 3522

Safe Harbor Statement:
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our proposed discussions related to our business or growth strategy such as growth in mobile handset business and cooperation with ZTE , which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For a further description of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov/.