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Greater China VoIP Suppliers Moving Upmarket -- China Sourcing Report

HONG KONG, July 28 Xinhua-PRNewswire-FirstCall — Fifty-nine percent of Greater China's VoIP phone manufacturers plan to increase export prices, according to Global Sources' (Nasdaq: GSOL) latest China Sourcing Report: VoIP Phones ( http://www.chinasourcingreports.com/voipphones08 ), reversing the trend noted in the 2007 Report which showed 68 percent planned to decrease export quotes. Despite price increases, the majority of surveyed suppliers expect export sales to continue growing.

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"Fierce competition has driven half of Greater China's VoIP phone manufacturers out of business over the past two years, especially those who relied mainly on competitive pricing to gain orders," said Publisher of the Report, Mark A. Saunderson.

"Higher production costs, the appreciation of the Yuan, mainland China's domestic inflation and intellectual property rights fees are among the factors that have led many manufacturers to focus on value-added models, which bring better margins.

"Many suppliers we talked to are producing models with wireless, Bluetooth technologies to help boost profits. However, in order to remain competitive, 88 percent of those who plan to raise prices are intending to keep hikes to less than 10 percent."

Manufacturers to Expand Capacity to Capitalize on Growing Demand

Despite market challenges, most VoIP phone manufacturers are optimistic that exports are likely to continue to grow. Among surveyed manufacturers:

— 36 percent say exports are expected to increase by over 20 percent; — 35 percent anticipate 10-20 percent growth in exports; — 19 percent expect growth of 10 percent or less; and — 10 percent do not expect exports to grow.

Seventy-four percent of the surveyed manufacturers plan to expand production capacity to capitalize on the expected sales growth.

"Survivors in the industry have learned that they need to move upmarket to maintain profit margins," Saunderson said. "This is good news for buyers who can expect to find higher end models with more value-added features coming out of Greater China."

In-factory Interviews, Price Forecasts and New VoIP Phone Export Models

The 85-page China Sourcing Report: VoIP Phones provides detailed profiles of 31 suppliers with verified manufacturing and export credentials. It includes a Product Gallery featuring 94 of the most popular export models, with key specifications and full-color pictures.

The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources Websites, Face-to-Face Events, Trade Magazines and Research Reports

China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online ( http://www.globalsources.com ), China Sourcing Fairs ( http://www.chinasourcingfair.com ), Global Sources monthly magazines and Global Sources Direct ( http://www.GlobalSourcesDirect.com ). For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://corporate.globalsources.com .

The China Sourcing Report: VoIP Phones is available for purchase at http://www.chinasourcingreports.com/voipphones08 . Free information about Greater China VoIP phone suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/voip-phone.htm .

About Global Sources

Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business is facilitating trade from Greater China to the world, using a wide range of English-language media. The other business segments facilitate trade from the world to Greater China, and trade within China, using Chinese-language media.

The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 700,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 230 countries.

The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on 2.6 million products and more than 195,000 suppliers annually through 14 online marketplaces, 13 monthly magazines, over 100 sourcing research reports and 9 specialized trade shows which run 27 times a year across eight cities.

Suppliers receive more than 32 million sales leads annually from buyers through Global Sources Online ( http://www.globalsources.com ) alone.

Global Sources has been facilitating global trade for 37 years. Global Sources' network covers more than 69 cities worldwide. In mainland China, Global Sources has over 2,100 team members in more than 44 locations, and a community of over 1 million registered online users and magazine readers for Chinese-language media.

Global Sources Press Contact in Asia: Camellia So Tel: +852-2555-5021 Email: cso@globalsources.com Global Sources Press Contact in U.S.: James W.W. Strachan Tel: +1-480-664-8309 Email: strachan@globalsources.com Global Sources Investor Contact in Asia: Investor Relations Department Tel: +852-2555-4777 Email: investor@globalsources.com Global Sources Investor Contact in U.S.: Kirsten Chapman Lippert/Heilshorn & Associates, Inc. Tel: +1-415-433-3777 Email: investor@globalsources.com

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