SHENZHEN, China, Dec. 3 /PRNewswire-FirstCall/ -- 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 series contracts for providing customized module solutions to enable cell phone users to watch TV programs broadcast in China on their mobile handsets. The shipment of the module solutions will start in December 2007.

Comtech's solution will allow cell phone users to receive any local and free channels broadcast in China. The system is not dependant on mobile signal reception, GPS or 3G network availability, and it offers a reliable, cost-effective alternative to existent technologies. The company estimates that more than 50 million mobile phones with this new feature will be shipped in 2008.

"Mobile TV function is set to be the next-cool-feature for mobile phones in 2008," said Jeffrey Kang, Comtech's President and CEO. "Our solution is innovative and practical. Since it is mobile network independent, everyone can watch real time broadcast TV programs using a cell phone in China, with or without 3G networks," said Mr. Kang.

"It means now you never have to miss your favorite TV programs," he continued, "and with the Olympic Games approaching, everybody will be able to watch the games with their cell phones whenever and wherever they want," said Mr. Kang.

Benefited from strong economy and increased consumer spending in China, Comtech has experienced better than expected results from the handset market. "2007 is likely to be a record year for mobile handset end market as well as our own business- much stronger than previously expected," remarked Mr. Kang. "Particularly from the second half of the year through the year end, we are seeing stronger than expected demand from the end market. The fourth quarter is usually the strongest quarter during the whole year in our industry; and these new contract wins further strengthen our business outlook in 2008. We are confident to achieve record business performance in the fourth quarter and believe the growth will be sustainable through 2008," said Mr. Kang.

In the most recent earnings announcement, the company's management has raised its 2007 full year guidance to USD 221 million in revenue and USD 0.70 in non-GAAP EPS Diluted, which represents more than 30% growth from last year.

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

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