SHENZHEN, CHINA – April 8, 2008: Comtech Group, Inc. (NASDAQ: COGO), a leading provider of customized design solutions for the technology manufacturing sector in China, today announced it signed a US$10 million deal to supply telecommunications module solutions to ZTE, one of the world’s top providers of telecommunications and network solutions.

With this agreement, Comtech will begin supplying ZTE with telecom solutions starting this quarter and expects to complete the order at the end of 2008. Today’s deal further solidifies Comtech’s long standing partnership with ZTE and increases the company’s growth perspective from telecom revenue in 2008. The agreement comprises just part of Comtech’s business with ZTE and mainly covers the datacom and broadband business sectors. In recent years, the companies have also worked together across many other areas including wireless infrastructure and mobile handset.

Capital expenditure in China’s telecom infrastructure was US$32 billion in 2007* and it is expected to continue steady growth going forward. The anticipated capital expenditure on TD-SCDMA networks is expected to grow from RMB22 billion in 2007 to RMB 47.2 billion in 2010.** In particular, 2008 promises strong results in part fuelled by the upcoming Olympic Games and calls for widespread mobile Internet access and multi media streaming. The eventual launch of 3G is also expected to kick off billions of dollars of network gear purchases and accelerate growth for the industry.

Jeffrey Kang, Chairman and Chief Executive Officer of Comtech Group, Inc. said, “We have excluded most of the 3G business in China from our current 2008 forecasts; however, our earlier design wins mean COGO is well positioned for a significant positive impact when the Chinese government releases the 3G license. We look forward to a 3G test, anticipated to launch before the Olympic Games commence this summer.”

“Telecom has demonstrated strong growth over the past ten years. Last year it comprised approximately 30% of COGO’s revenue and it remains a major component of the company’s strong growth. Comtech has now partnered with all of the major players in this market and expects sustainable growth in the next few years, driven by the Chinese domestic market and our customer’s international expansion,” Kang continued.

“This deal is important to us because it secures our sustainable revenue growth in this sector and enables management to be more confident about our growth outlook , despite the prospect of a US recession. Because we are targeting China and new emerging markets, we see better-than-expected market demand across our three major markets: - digital media, mobile handset and telecom infrastructure. We expect to continue our strong growth pattern in 2008,” Kang concluded.

About Comtech Group, Inc.:
Comtech Group, Inc. (NASDAQ: COGO) is a leading provider of customized module and subsystem design solutions for the Chinese market. The company believes it acts as a proxy to China's technology industry as it works with virtually all the major ODMs and OEMs China. Comtech utilizes 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 mobile handset, telecom equipment and digital media end-markets for their customized design modules while also offering business and engineering services to their large telecom equipment vendor customers. Over the last twelve 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, covering both multinational Chinese subsidiaries and Chinese domestic companies. For more information, visit

About ZTE Corporation:
Founded in 1985, with global headquarters in Shenzhen China, and operations in more than 100 countries, ZTE is a global provider of fixed line and 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 http://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

*The China Digest, 5 March, 2008, Susquehanna Financial Group, LLLP
**3G pushes reorganisation of telecom sector, 12 Mar 2007, Hong Kong Trade Development Council