HONG KONG, May 19, 2009 – Despite the global economic slowdown, most China home entertainment product suppliers expect sales to grow this year, according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Home Entertainment (http://www.ChinaSourcingReports.com/home-entertainment).

Among surveyed suppliers of home entertainment products:

• 47 percent forecast sales growth of more than 20 percent;
• 21 percent expect growth of 10 to 20 percent;
• 11 percent predict sales to increase by less than 10 percent; and
• 21 percent anticipate flat or declining sales.

"Global demand for high-definition and digital home entertainment products, coupled with a drop in the cost of LCD and plasma displays, are spurring growth in the sector," said Spenser Au, Publisher of the Report.

"Even as the economy slows, consumers are rapidly adopting new digital entertainment technologies. In the United States, HDTV-equipped homes doubled in 2008 to 23 percent of all households. HDTV is also expected to take off in Europe from today's 59 million HDTV homes to 116 million in 2010 and over 200 million by 2018. This is one reason suppliers are so optimistic about the EU market, with 63 percent ranking it as their top export destination."

Prices set to drop amid fierce price competition

Au said: "Sixty-seven percent of suppliers we surveyed expect price competition to be the biggest challenge they face in the coming months. In order to gain or maintain market share, 79 percent are planning to maintain or decrease prices.

"A number of suppliers are also producing or planning to produce their own LCD modules. This is backed by strong support from the China government, which listed LCD module production as a key concern in its Eleventh Five-Year Plan."

Suppliers are also working in other areas to increase competitiveness with:

• 32 percent widening their product ranges;
• 26 percent improving operating efficiency; and
• 26 percent working to reduce production costs.

The remaining 16 percent of suppliers cited decreasing product defects and shortening design/development time as their main strategies to win more orders.

Au concluded: "As competition increases along with demand, it is a buyers' market in the home entertainment sector. Companies buying from the region can expect to find more value-for-the-money products, all at lower prices than they paid last year."

Supplier profiles, price forecasts and new home entertainment product export models

The 94-page China Sourcing Report: Home Entertainment provides detailed profiles of 19 suppliers with verified manufacturing and export credentials and contact details of an additional 37 exporters. It also includes a Product Gallery featuring 50 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, trade 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 ), China Sourcing Fairs ( http://www.chinasourcingfair.com ) and Global Sources monthly magazines. 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 Entertainment is available for purchase at http://www.ChinaSourcingReports.com/home-entertainment .

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