HONG KONG, May 30, 2008 – Greater China home textile exports are projected to top US$9.5 billion this year - up 15 percent from 2007, according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Home Textiles (http://www.ChinaSourcingReports.com/hometextiles08).

"Greater China home textile exports are showing surprisingly strong growth, despite the many challenges faced by exporters," said Report publisher, Spenser Au. "These challenges include a rising Yuan, higher production costs and growing competition from overseas manufacturers.

"To gain an edge, Greater China suppliers are concentrating on enhancements in construction, fabrication, workmanship and printing, to move up the value chain, so as to command higher prices and generate better margins."

Among surveyed home textiles suppliers' R&D focus for the coming months:

• 46 percent plan to introduce environmentally-friendly materials;
• 26 percent plan to use more functional fabrics;
• 23 percent plan to employ anti-bacterial fabrics; and
• 5 percent plan to produce products from luxury fabrics.

Among surveyed Greater China suppliers' top challenges:

• 33 percent cited price competition;
• 33 percent said raw material costs; and
• 21 percent said labor shortages.

The remaining 13 percent of respondents pointed to stricter overseas standards and design copying / piracy concerns.

Suppliers Target Upscale Markets, Predict Much Higher Exports

"Thanks to a boom in OEM and ODM orders, which accounted for more than 90 percent of exports in 2007, suppliers are very optimistic about export growth this year," said Au.

"Fifty-six percent of surveyed suppliers said they expect growth of between 10 and 20 percent this year, while 44 percent expect an increase of more than 20 percent."

Among surveyed suppliers' top export destinations:

• 53 percent are focused on exports to the EU;
• 44 percent are targeting exports to North America; and
• 3 percent are focused on exports to Asia.

Au said: "While challenges lay ahead, Greater China's home textile manufacturers seem to have adapted for the moment and, in fact, are thriving by moving to the high end. This is also good news for buyers who source from Greater China, as they can now find a range of higher end, high quality products at very competitive prices."

In-Factory Interviews, Price Forecasts and New Home Textile Models

The 92-page China Sourcing Report: Home Textiles provides detailed profiles of 39 suppliers with verified manufacturing and export credentials. It includes a Product Gallery featuring 89 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 and Trade Magazines

China Sourcing Reports are part of the company's portfolio of 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.

The China Sourcing Report: Home Textiles is available for purchase at http://www.ChinaSourcingReports.com/hometextiles08

Free information about Greater China home textile suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/home-textile.htm