HONG KONG, February 28, 2008 – Due largely to the cost of compliance with stricter overseas and domestic regulations, many small to medium baby toy manufacturers are expected to switch to other product lines or to cease operations altogether. This is according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Baby Toys (http://www.chinasourcingreports.com/babytoysreport).

"Since last year, a range of mainland China-made toys, including baby toys, must obtain the China Compulsory Certification before being sold domestically or overseas. Stricter international standards and higher testing costs are also driving up manufacturing costs for suppliers," said the Report publisher, Spenser Au.

"Due to these higher costs, we expect consolidation in the industry with a number of small to medium manufacturers switching to other product lines or shutting down permanently."

Among surveyed suppliers' challenges for the next 12 months:

• 41 percent cited stricter overseas standards;
• 23 percent said price competition; and
• 18 percent indicated higher raw material costs.

The remaining 18 percent cited design copying / piracy and labor shortages.

Greater China Baby Toy Suppliers Expect to Raise Prices in '08

Au said: "Due to higher operating costs, including raw material and labor costs, most manufacturers said they plan to raise prices in 2008."

Among respondents, 82 percent plan to increase prices, while 18 percent say they'll keep prices the same. However, more than half (58 percent) of respondents said they'll limit price hikes to 5 percent or less.

In-Factory Interviews, Price Forecasts and New Baby Toy Export Models

The 99-page China Sourcing Report: Baby Toys provides detailed profiles of 45 suppliers with verified manufacturing and export credentials. It includes a Product Gallery featuring 116 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, Trade Shows, 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), Global Sources trade magazines, Global Sources Direct (http://www.GlobalSourcesDirect.com) and the China Sourcing Fairs (http://www.chinasourcingfair.com). For more information, visit http://www.corporate.globalsources.com .

The China Sourcing Report: Baby Toys is available for purchase at http://www.chinasourcingreports.com/babytoysreport .

Information about Greater China baby toy suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/Baby-Toys.htm .