HONG KONG, September 29, 2009 – China suppliers are optimistic about sales for the next 12 months, despite a 6 percent sales drop during the first quarter of 2009 from a year earlier. This is according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Jewelry & Watches (http://www.chinasourcingreports.com/jewelrywatches).

Among surveyed China jewelry and watch suppliers:

• 27 percent predict sales growth by greater than 20 percent;
• 32 percent expect an increase of between 10 to 20 percent;
• 36 percent estimate sales to increase by less than 10 percent; and
• 5 percent expect sales to remain unchanged.

"Although exports dropped marginally in the first few months of the year, suppliers are already seeing signs of stronger sales ahead and are preparing for future growth," said Spenser Au, Publisher of the Report.

"Among suppliers we surveyed, 91 percent are planning to increase capital expenditures by more than 20 percent in the next 12 months. Suppliers are primarily focused on training staff, widening product ranges and improving operating efficiency to win more orders."

Suppliers raising export prices, targeting a mix of traditional and new markets

Au said: "Due to increases in the price of raw materials, 59 percent of manufacturers are planning to raise prices. However, more than half are planning to limit increases to less than 10 percent, amid fierce price competition.

"The EU and North America are expected to remain as key export destinations. However, shipments to non-EU countries and the Asia-Pacific region are expected to improve as suppliers plan to expand their reach beyond traditional markets."

Au said: "During the economic downturn, China suppliers have become more efficient. When the global economy does turn the corner, they are poised to grow their exports, while giving buyers even greater value than before."

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

The 101-page China Sourcing Report: Jewelry & Watches provides detailed profiles of 22 suppliers with verified manufacturing and export credentials and contact details of an additional 20 exporters. It also includes a Product Gallery featuring 67 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), Private Sourcing Events (http://www.PrivateSourcingEvents.com) and Global Sources monthly magazines (http://www.globalsources.com/SITE/MAGAZINES.HTM). For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://www.corporate.globalsources.com .

The China Sourcing Report: Jewelry & Watches is available for purchase at http://www.chinasourcingreports.com/jewelrywatches .

Free information about Greater China jewelry and watch suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/Jewelry-Sets.htm .