SHENZHEN, China, July 9, 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 deal to provide customized module solutions to support a range of handsets to be rolled out by China Unicom, the second largest wireless operator in China.

The customized solutions are designed to support a highly innovative trading function in the new phones. The new function will provide real time market updates, comprehensive financial analysis and personalized stock price alerts and will permit users to connect with over 90 per cent of the trading systems in China.

The deal allows Comtech to capitalize on two current trends in China - the rising level of stock market trading among consumers and the increasing level of mobile phone penetration. The number of mobile phone subscribers in China hit 481 million in March 2007(1), while the combined value of shares traded on the Shanghai and Shenzhen stock exchanges reached US$49 billion in May, greater than in the rest of Asia - including Japan - combined(2).

Jeffrey Kang, President & Chief Executive Officer, Comtech Group, Inc., said, "On the one hand, mobile phone subscriptions in China look set to continue to rise, with the handset market likely to grow by over 25% during 2007, driven largely by replacement models."

"On the other, China's stock exchanges have performed extremely strongly in recent months, with the number of new stock subscribers increasing by literally hundreds of thousands every day. These people need fast, real time access to accurate data on stock price movements and market trends," said Mr. Kang.

"There is likely to be a strong demand for a phone with real time trading functionality that can allow people to trade on the stock exchanges from their handsets. This deal will have a positive impact on our bottom line, as we have the necessary expertise to support this kind of product and service" he said.

"The constant changes that the technology industry goes through mean that it's important to be able to respond quickly to new developments. This deal shows that our business model works well, in terms of helping our customers to identify key trends and to deliver products at the right time to capture momentum within their markets," he added.

Comtech will begin shipping solutions during the second half of 2007, which will support its revenues and profitability for the current financial year. The importance of the deal is underlined by China Unicom's status as the second largest mobile operator in China, which last year had 36.7 per cent of the Chinese market

"This is the latest reason for us to feel very confident about our business, as we move into the second half of 2007. Customer demand across all of our key lines of business is looking very positive at present, and this will help create a sustainable pattern of growth for Comtech into 2008 and beyond," Mr. Kang said.

Footnotes:
(1) China Daily.
(2) Financial Times.

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.

For further information contact:
Comtech Investor Relations
www.comtech.com.cn/investorinfo.html
communications@comtech.com.cn
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Fax: +86 (755) 2674 3522