HONG KONG, May 8, 2008 – Eighty-six percent of mainland China and Hong Kong mini component systems manufacturers expect higher export sales in 2008. This is despite rising prices due to a variety of factors including higher labor and raw material costs, according to Global Sources’ (NASDAQ: GSOL) China Sourcing Report: Mini Component Systems (http://www.ChinaSourcingReports.com/minicomponentsystemsreport).

The Report also quotes China Audio Industry Association estimates showing mainland China suppliers produced 30 million mini component systems in 2007, which accounted for almost 80 percent of the world's total output.

Publisher of the Report, Mark A. Saunderson, said: "Mainland China and Hong Kong suppliers are facing new challenges, including stricter enforcement of Intellectual Property Rights (IPR) fees.

"IPR fees for a DVD mini component system are typically US$12.00 to $15.50, accounting for almost 50 percent of the production cost of an entry-level model.

"Along with rising labor and raw material costs, compliance with IPR regulations is expected to be a factor driving up export prices this year."

Among surveyed respondents, 68 percent say they plan to raise export prices in 2008.

Manufacturers Moving Toward Higher-end Mini Component Systems

In order to grow profits, the majority of surveyed manufacturers said they are focusing on higher-end products which can bring them higher margins.

Of surveyed manufacturers:

• 32 percent plan to introduce multimedia interfaces to their products;
• 27 percent plan to focus on improving external design;
• 18 percent plan to improve audio quality or output power;
• 18 percent plan to increase add-on functions; and
• 5 percent plan to produce models that support multiple formats.

Popular advanced features for 2008 new models include TFT-LCD screens, touch screen panels, integrated NXT flat speakers, Internet radio, HD radio and RDS function.

In-factory Interviews, Detailed Supplier Profiles and New Mini Component Systems

The 70-page China Sourcing Report: Mini Component Systems provides proprietary market information from in-person factory visits to 15 manufacturers and interviews with 7 more suppliers. It includes a Product Gallery featuring 75 of the most popular export models, with key specifications and full-color pictures. The 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' portfolio of brands for sourcing and product information services, which 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.

China Sourcing Report: Mini Component Systems is available at: http://www.ChinaSourcingReports.com/minicomponentsystemsreport .

Information about Greater China mini component system suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/Mini-Components.htm .