Global Sources - Press Release

NEW YORK, March, 11, 2008 – Global Sources Ltd. (NASDAQ: GSOL) (http://www.globalsources.com) reported financial results for the fourth quarter and year ended Dec. 31, 2007.

Global Sources' chairman and CEO, Merle A. Hinrichs, said: "We had a very good year in 2007 financially, and in making investments to establish the foundation for continued success. In 2008 we plan to invest even more heavily in our online and trade show businesses.

"For our export-focused online business, last October we launched Global Sources Online 2.0, offering what we believe is the premier search experience in our industry. In January 2008, we introduced significant additional enhancements with the Six Star ranking system that provides buyers with third party credit check information on all verified suppliers. In January we also rolled out an end-to-end repackaging and repricing of our marketing programs for suppliers.

"We also continue to build on the outstanding success of our China Sourcing Fairs. They address the essential, face-to-face stage of the buying process. Ten new shows are scheduled to be added in 2008 in mainland China, Dubai, Hong Kong and India. To support the investment in our products, we anticipate a substantial increase in our sales representation.

"As we begin 2008, we are extremely pleased with our position in the market, with our products, and with our growth prospects. Our supplier customers typically have three primary objectives: lead generation, branding and differentiation, and opportunities to meet face-to-face with buyers. With our integrated offering of online marketplaces, trade shows and magazines, we address all three objectives, a clear and powerful differentiation from our online competitors who only address the lead generation objective."

Non-GAAP Metrics

Management believes non-GAAP metrics are useful measures of operations and provides GAAP to non-GAAP reconciliation tables at the end of this press release. Effective March 11, 2008, Global Sources defines non-GAAP net income as net income excluding non-cash stock based compensation (SBC) expense or credit, gains or losses on acquisitions and investments, and/or impairment charges, for all historical and future references to non-GAAP metrics. Non-GAAP EPS is defined as non-GAAP net income divided by the weighted average of diluted common shares outstanding.

Highlights: Fourth Quarter 2007 Compared to Fourth Quarter 2006

Revenue was $60.8 million, up 16% from $52.3 million.

Online revenue was $20.5 million, up 21% from $16.9 million.
Exhibitions revenue was $25.5 million, up 18%.
Print revenue was essentially flat at $13.5 million.
Revenue from mainland China was $38.6 million, up 28%.
Total deferred income and customer prepayments were $83.1 million as at Dec. 31, 2007, up 30% from $63.8 million as at Dec. 31, 2006.

In accordance with generally accepted accounting principles (GAAP), fourth quarter 2007 net income was $8.1 million, or $0.17 per diluted share, which included:

$2.4 million gain from the sale of equity interests in HC International, Inc.;
$3.1 million write-down on the investment in Blue Bamboo; and
$3.6 million non-cash stock based compensation expense (SBC) based on the Dec. 31, 2007 stock price of $28.22.

For the fourth quarter of 2006, GAAP net income was $15.3 million, or $0.33 per diluted share, which included a $7.9 million gain related to the sale of shares of its subsidiary eMedia Asia Ltd. and $1.2 million SBC based upon the Dec. 29, 2006 stock price of $17.78.

For the fourth quarter of 2007, non-GAAP net income was $12.5 million, up 34% when compared to $9.3 million for the fourth quarter of 2006. Fourth quarter 2007 non-GAAP EPS was $0.26, up from $0.20 for the fourth quarter of 2006.

Highlights: Year Ended Dec. 31, 2007

For the fiscal year ended Dec. 31, 2007, revenue was $182.1 million, compared to $156.5 million for the year ended Dec. 31, 2006. GAAP net income for the full year 2007 was $24.0 million, or $0.51 per diluted share, and included:

$1.8 million impairment charge on the HC International investment;
$2.4 million gain from the sale of equity interests in HC International;
$3.1 million write-down on the investment in Blue Bamboo; and
$7.8 million SBC based upon stock prices at the end of each quarter.

2006 GAAP net income was $27.9 million, or $0.60 per diluted share. 2007 non-GAAP net income was $34.4 million, up 39% compared to $24.8 million. 2007 Non-GAAP EPS was $0.73, up from $0.53 for 2006.

CFO Eddie Heng said: "Our operational performance and foundation are strong. In 2007, we grew non-GAAP net income by 39% and generated cash from operations of $60.6 million, an increase of 65% as compared to 2006. Our Dec. 31, 2007 cash and securities balance was $197.8 million, and we had no debt."

Financial Expectations: First Half Revenue – Up 15% to 17%

Revenue for the first quarter 2008 ending March 31, 2008 is expected to be between $39.5 million and $40.0 million, representing a gain of 13% to 15% over first quarter 2007. Based on the stock price of $12.20 on Feb. 29, 2008 compared to the Dec. 31, 2007 stock price of $28.22, SBC for the first quarter of 2008 is estimated to be a credit of $0.04 per diluted share. First quarter 2008 GAAP EPS is expected to be between $0.15 and $0.16. First quarter non-GAAP EPS is expected to be between $0.11 and $0.12, compared to $0.15 per diluted share in the first quarter 2007.

Revenue for the six-month period ending June 30, 2008 is expected to be in the range of $101.0 million to $102.5 million. Compared to $87.5 million for the first six months of 2007, this represents an increase of 15% to 17%. Using the stock price of $12.20 on Feb. 29, 2008, SBC for the quarters ending March 31 and June 30, SBC for the six-month period is estimated to be a credit of $0.02 per diluted share. GAAP EPS for the six-month period is expected to be in the range of $0.32 to $0.34. Non-GAAP EPS for the six-month period is expected to be in the range of $0.30 to $0.32, compared to $0.34 per diluted share for the same period in 2007.

Heng said: "In 2008, online and trade shows are expected to drive our growth, while print is expected to remain soft. We plan to continue investing in five areas related to our online and trade show initiatives: 1) sales representation; 2) IT infrastructure; 3) content development; 4) marketing to suppliers; and 5) marketing to buyers. While this may affect our earnings, we expect these investments to positively impact our growth by 2009."

Recent Corporate Highlights: New Web Sites, Expanded China Sourcing Fairs, and New Programs and Pricing for Suppliers

Launched Global Sources Online 2.0 (http://www.globalsources.com), a unique new vertical search engine and marketplace, which delivers comprehensive search results including both verified and unverified suppliers.
Grew lead generation, which is measured as requests for information from buyers to suppliers through Global Sources Online 2.0, to over 27 million for the 12 months ended Dec. 31, 2007, an increase of over 10 million compared to Dec. 31, 2006.
Launched the Six Star Program which enables buyers to evaluate suppliers based on the amount of third party verification information provided, and also involves a comprehensive repackaging and repricing of services for suppliers.
Launched a new Chinese-language vertical search engine and online marketplace called China Global Sources Online (http://www.globalsources.com.cn) to facilitate domestic B2B trade within China.
Concluded the largest-ever China Sourcing Fairs in October in Hong Kong. There were approximately 7,520 booths and the shows were profitable for the first time since their launch in April 2006.
The largest-ever International IC-China shows are concluding on March 11th, with over 1,400 booths, up 37% over 2007. Major expansion plans also have been announced for 2009 including new locations and increased frequency.
Launched and announced new initiatives for exporters in India: Private Sourcing Events for Casino, Carrefour, El Corte Ingles, Markant and Sears, held in February 2008 in New Delhi by the company's sales representative for India; introduction of the Six Star Program; and the scheduled launch of India Sourcing Fair: Home Products in Hong Kong in 2009.
The first China Sourcing Fairs for the China domestic market were held in Shanghai in December 2007, and plans were announced for the shows to also be held in Guangzhou each June.
Increased Global Sources' independently certified community of active buyers to more than 657,000 at the end of the fourth quarter, a 17% increase compared to the same quarter last year.
Announced the authorization of a stock buyback program for up to $50 million.
Announced a one for ten share bonus share issue, which was distributed on or about Feb. 1, 2008.

Conference Call for Global Sources Fourth Quarter 2007 Earnings

Chairman and CEO, Merle A. Hinrichs, is scheduled to conduct a conference call at 8:00 a.m. ET on March 11, 2008 (8:00 p.m. on March 11, 2008 in Hong Kong) to review these results in more detail. Investors in the United States may participate in the call by dialing (888) 212-8315, and international participants may dial (1-706) 643-0144. Investors in Hong Kong may call (852) 3011-4522. A live webcast of the conference call is scheduled to be available on Global Sources' corporate site at http://www.investor.globalsources.com.

For those who cannot listen to the live broadcast, a webcast replay of the call is scheduled to be available on the company's corporate site for at least 30 days. A telephone replay of the call is also scheduled to be available through March 13, 2008. To listen to the telephone replay, dial (800) 642-1687, or dial (1-706) 645-9291 outside the United States, and enter pass code 31873533#. For those in the Hong Kong area, the replay dial-in number is (852) 3011-4541, and the pass code is 31873533#.