Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

June 05, 2007 09:00 ET

Grand Power Acquires 51% Stake in BSI Logistics Limited

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - June 5, 2007) - Grand Power Logistics Group Inc. ("Grand Power") (TSX VENTURE:GPW) is pleased to announce that its principal operating subsidiary, Grand Power Express International Ltd (GP Express), has acquired a 51% stake in BSI Logistics Limited (BSI) through Parkway Global Ltd (PGL), a newly established subsidiary registered in the British Virgin Islands.

GP Express will invest approximately C$207,774 (HK$1,530,000) for 51% interest in BSI. The minority shareholder, Centervision International Ltd (CVIL), will acquire the remaining 49% of BSI. The acquisition will be effective as of June 1, 2006. BSI will use the proceeds for working capital purposes. GP Express will appoint all of the directors to the board of BSI to oversee its operations. The principals of CVIL are pioneers in the air freight industry in Hong Kong, with particular expertise in the European and North America markets.

BSI was incorporated in May 2006 as a Hong Kong based freight forwarding and logistics company. BSI offers a comprehensive range of supply chain management services and logistics solutions for manufacturing, industrial, retail, and government customers, along with value-added ancillary services such as pre-shipment estimating, banking, and documentation.

BSI will also provide GP Express with additional support and access to the co-loading or cargo consolidation markets. Co-loading is the consolidation of part-shipments of several customers into one larger shipment, which results in a more cost-effective, yet profitable utilization of cargo space.

Ricky Chiu, President and CEO of Grand Power Logistics Group said, "This is a relatively small acquisition for us, but it provides us with another established and efficient access to the co-loading markets. Since mid 2006, Grand Power's focus has been more on direct clients, rather than the co-loading or air-cargo consolidation. Working with a specialist company to consolidate cargo destined for Europe and North America is valuable for us. When properly managed by specialists in this sector, this can significantly improve the profit margin in this business." Chiu adds, "We believe that this arrangement could contribute between C$1 million to C$ 1.5 million in sales revenue, with gross margin of over C$44,000, per month to the company."

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express) and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen, Guangzhou, and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles.

Forward-looking statements: Statements included in this press release that are not historical facts may be considered "forward looking statements". All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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