SHENZHEN, China, Sept. 25, 2007 -- Comtech Group, Inc. (NASDAQ:COGO) , a leading provider of customized design solutions for the technology manufacturing sector in China, announced today that the company has won a total of US$ 10 million new contracts for providing customized module solutions including newly designed GPS and touch panel solutions to leading Chinese mobile phone manufacturers. The shipment of the module solutions will start in September and be completed in Q4 2007.

The series of contracts will enable Comtech to capitalize on China's fast growing mobile phone market. According to the Ministry of Information Industry (MII), by April 2007, the total number of mobile phone users in China had already reached 487 million, exceeding fixed line users by approximately 100 million.

Jeffrey Kang, President & Chief Executive Officer, Comtech Group, Inc., commented today, "We are seeing stronger-than-expected growth of Chinese domestic mobile phone manufacturers. We are covering almost every OEM, ODM, and IDH in this area and have seen continuously strong demand since September this year."

"The contract wins also demonstrate that Comtech is a valued partner, both in terms of offering advanced technology expertise and helping our customers respond quickly to market trends, capturing potential business opportunities," added Mr. Kang.

China is experiencing fast and robust growth in the mobile phone market. Driven by more than 20 percent replacement and over 60 million new subscribers per year, industry experts estimate the annual China domestic market demand this year stands at over 200 million new mobile phones, excluding those made in China and sold to overseas markets. Chinese local mobile phone manufacturers are playing a key role in the development of the market, with shipments from local manufacturers increasing by 33 percent, reaching approximately 106 million in 2007(1).

"As we are moving toward to the end of 2007, this series of contracts further boosts Comtech's growth in this key business line and highlights our strong financial performance in the market. We remain confident in the sustainable pattern of our business, not only because we have continuously grown in our traditional business line, but also because we believe some of these new solutions will become the key features of the phones in 2008 and the market will keep expanding strongly in 2008," concluded Mr. Kang.

In the most recent announcement of the company's earnings, Comtech management indicated revenue guidance of US$ 220 million and pro forma EPS of 69 cents in 2007, representing an annual growth rate of 30 percent for each.

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
H.K.: +852 2730 1518
U.S.: +1 (646) 291 8998
Fax: +86 (755) 2674 3522

(1) MIC Taipei