Comtech Group Enters Into New Supplier Agreement With Broadcom ~ The Company Secures a Purchase Order From Lenovo ~ SHENZHEN, China, Jan. 19 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (OTC:COMT.OB) (BULLETIN BOARD: COMT.OB) , a leading module design solutions provider in China focused on the mobile handset and telecom equipment industries, today announced that it has entered into a new supplier agreement with Broadcom Corporation (NASDAQ:BRCM), a leading provider of highly integrated silicon solutions enabling broadband communications. Partnered with Broadcom, Comtech will include that company's technology and chipsets in the development of module solutions being supplied to Comtech's telecom equipment and mobile handset OEM customers in China. In addition, Comtech plans to include Broadcom's technology and chipsets in its solutions to consumer electronics OEMs, designed into products such as set-top boxes, digital televisions, entertainment centers, wireless networks, VoIP products, storage networks, among others. "Broadcom is a leading enabler of broadband, datacom and wireless technologies," said Jeffrey Kang, Chairman and President of Comtech Group. "We are very excited about our new relationship with Broadcom. Being partnered with Broadcom will allow Comtech to broaden our product lines, extend our reach into new markets and enhance our competitive advantage. China's demand for electronic products, such as mobile phones, PCs and DVD players, has significantly increased, further boosting the need for semiconductor-related devices." According to IC Insights, the Chinese integrated circuit industry will increase from US$19.2 billion in 2003 to US$61.9 billion in 2008, representing a compound annual growth rate of 26.4%. China's share of the worldwide integrated circuit market is expected to increase from 13.7% in 2003 to 23.5% in 2008. Separately, the new partnership with Broadcom has already helped Comtech secure a purchase order from Lenovo Group Limited, which acquired IBM's personal computing division in December 2004. Specifically, Comtech will provide Lenovo with an Ethernet solution that incorporates Broadcom's chipsets. About Comtech Comtech Group, Inc. is a gateway to the high-growth technology market in China. The Company is a module design solutions provider in China, focused on the mobile handset and telecom equipment industries. The Company designs solutions for mobile device products, including liquid crystal display (LCD) modules, camera modules, persistent storage modules, input/output modules, sound system and power supply modules. In the telecom equipment industry Comtech targets optical solutions, data communication solutions, public switched telephone network (PSTN) switching and wireless base stations. Safe Harbor Statement This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives and other forward looking terminology such as "may," "expects," "believes," "anticipates," "intends," "expects," "projects," or similar terms, variations of such terms or the negative of such terms. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein. DATASOURCE: Comtech Group, Inc. CONTACT: in Asia Pacific, Hope Ni, Chief Financial Officer, ; or in North America, Jason Golz of Financial Dynamics, +1-415-439-4532, or , for Comtech Group, Inc. Web site: http://www.comtech.com.cn/

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