SHENZHEN, China, Sept. 10, 2007 -- Comtech Group, Inc. (NASDAQ:COGO) , a leading provider of customized design solutions for the technology manufacturing sector in China, today announced that it has just begun providing module solutions to manufacturers of learning devices in China, as part of an expansion of its business in the digital media sector.

Learning devices are self-learning digital gadgets that are mainly used in the teaching of the English language to students from kindergarten to high school level in China. The Comtech solution supports high-end learning devices that offer unique, attractive multimedia formats for students to learn and practice English in an interactive way.

Jeffrey Kang, President & Chief Executive Officer, Comtech Group, Inc., said: "Only a small portion of students in cities are using learning devices to help improve their English language skills after school. We believe the education technology market is set to grow dramatically in the next few years, driven by economic expansion and increased consumer spending in China."

At present, there are approximately 233 million school students in China aged between 6 and 18*. Industry experts estimate the size of the market for learning devices in China at around 15 million units per year, with this number projected to grow over the coming years.

"Education is a priority for most Chinese families and children are encouraged to study at home after school. This is why learning devices, which help children to embrace new technologies and to learn subjects like English in a fun, interactive way, are likely to become increasingly popular throughout China," said Mr. Kang.

"In addition, the advent of the 2008 Beijing Olympics has given a greater impetus to the demand for English language skills among students at all levels. With our proven capabilities in identifying new emerging growth market in China and providing technology solutions to enable our manufacturer customers to meet their market demand quickly, we are confident that we are well placed to capitalize on this projected demand for learning devices," he said.

Comtech is scheduled to begin volume shipments of solutions to learning device manufacturers during the fourth quarter of 2007. The company expects its activities in this area to have a positive impact on its digital media business in the current financial year. In addition to learning devices, Comtech is planning to develop other applications and businesses in the high growth education technology industry to support its ongoing sustainable high growth target.

Footnotes:
* China Education & Research Network

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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