SHENZHEN, China, Mar 28, 2007 -- Comtech Group, Inc. (NASDAQ: COGO), a leading provider of customized module design solutions for the technology manufacturing sector in China, has today announced it has signed a major deal to provide customized module solution to ZTE Corporation, one of the world's top providers of telecommunications and network solutions.

The Comtech solution will be used in a line of low cost 2G handsets that are being produced by ZTE for Vodafone, the leading global mobile telecommunications network company, for sale in emerging markets. Under the terms of the agreement, the handsets -- with the Comtech technology installed -- are expected to ship in the second quarter of this year.

The deal marks another highlight for Comtech in its long history of cooperation with ZTE Corporation. In recent years, Comtech has provided a range of module solutions for ZTE's CDMA, GSM and 3G handsets.

Jeffrey Kang, President & Chief Executive Officer, Comtech Group, Inc., said, "Previously, we have mainly focused on providing solutions for mid- to high-end handsets. But this win proves we are also competitive in the low-end market, and can provide high performance and low-cost solutions which can support the marketability of handsets in emerging markets.

"Since ZTE's market share is expanding not only domestically, but also internationally -- in India's CDMA market and through this and other Vodafone projects -- we expect to see our business with ZTE accelerating this year," said Mr. Kang.

"We serve all of the major handset producers based in China and have experienced strong and sustainable growth over the past year. We are also optimistic about demand in the handset market, which we believe will remain strong and healthy in 2007. This deal certainly backs up our confident business outlook in this space for the current year," he said.

This contract is the latest to be secured by Comtech with ZTE. In addition to module solutions for handsets, the company also provides ZTE with solutions in the wireless, broadband, optical and datacom sectors.

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 digital media, mobile handset and telecom businesses, 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 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 descriptions 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, including our most recent S-1 Form and/or S-3. 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/.