HONG KONG, April 11, 2008 – Global Sources' (NASDAQ: GSOL) (http://www.globalsources.com) China Supplier Survey on electronics products shows that 84 percent of electronics suppliers in Greater China plan to increase production capacity and more than half of them are planning to keep price increases to 5 percent or below. This is despite higher costs of raw materials and RoHS compliance.

"Greater China suppliers are facing a number of challenges, including higher manufacturing costs and an appreciating Yuan," said Mark A. Saunderson, publisher of the report. "Meanwhile, price competition hasn't let up. However, most suppliers expressed their willingness to hold export quotes to maintain market share."

Among surveyed Greater China electronics suppliers' top challenges ahead:

• 37 percent cited fierce price competition;
• 25 percent said design copying and piracy are their most difficult challenge;
• 23 percent are challenged with rising raw material costs;
• 10 percent are facing labor shortage; and
• 5 percent have difficulties with stricter overseas standards.

Despite Challenges, Suppliers Expanding Capacity and Upgrading Facilities

Due to global demand, suppliers are optimistic about sales this year. Among surveyed suppliers, 39 percent are planning to increase capacity by at least 20 percent while 47 percent primarily target exports to the EU.

Saunderson said: "Greater China's electronics suppliers are again showing their adaptability to any market situation. They're becoming more skilled at obtaining product approvals and at entering new markets, which can lead to better margins."

Extensive Interviews across Greater China Outline Price and Supply Trends

Global Sources' researchers interviewed 322 makers across 10 electronics sectors in Greater China, with the majority of manufacturers located in southeastern China. More than half of respondents were based in Guangdong province, while Fujian and Zhejiang were other key production hubs.

The survey covers access control, battery chargers, Bluetooth headsets, DC motors, digital cameras, in-car TVs, IP cameras, PC cameras, media players and USB flash drives.

The Global Sources survey outlines how manufacturers in Greater China are addressing product quality and pricing issues in the wake of current slowdown in the United States, one of the world's largest export markets.

The China Supplier Survey's price trends and supply forecasts aim to help buyers make better-informed purchasing decisions. The full report is available in PDF format for free downloads at http://www.globalsources.com/SITE/EBUCSS.HTM .

Specialized Global Sources Websites, Trade Shows and Magazines

China Supplier Survey is part of Global Sources' sourcing and product information services. These include Global Sources Online (http://www.globalsources.com), Global Sources Direct (http://www.GlobalSourcesDirect.com), China Sourcing Fairs (http://www.chinasourcingfair.com), Global Sources trade magazines and China Sourcing Reports (http://www.ChinaSourcingReports.com).