Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

May 30, 2006 09:00 ET

Grand Power Commences Operations in Shanghai; Announces New Key Agent Appointment

CALGARY, ALBERTA AND HONG KONG, PEOPLE'S REPUBLIC OF CHINA--(CCNMatthews - May 30, 2006) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW) ("Grand Power Logistics") is pleased to announce that, effective May 22, 2006, Grand Power Express Forwarders Co. Ltd. of Macau ("GP Macau") has commenced operations in Shanghai, Peoples Republic of China ("PRC" or "China") under the name of Grand Power Express Forwarders Shanghai Ltd ("GP Shanghai").

GP Macau is a subsidiary of GP Express International ("GP Express") of Hong Kong, the principal operating subsidiary of Grand Power Logistics. In April 2006, GP Express completed its acquisition of GP Macau, allowing GP Express to conduct business directly in China.

"Being able to operate directly out of Shanghai is an exciting development for our company and for our shareholders", said Ricky Chiu, President and CEO of Grand Power Logistics. He adds, "The recently announced acquisition of GP Macau was instrumental for our expansion into China. With GP Macau's CEPA license for China, we now have direct access to the China market through GP Shanghai, allowing us to move more aggressively to establish our presence in Shanghai and also elsewhere in China."

CEPA (Closer Economic Partnership Arrangement) is a free trade agreement between China and Hong Kong and Macau. Currently, only companies based in Hong Kong and Macau can obtain a CEPA license, giving them a strategic advantage over other foreign logistics companies in the region.

In conjunction with commencing its operations in Shanghai, GP Shanghai has also been appointed as a Key Agent by one of North America's largest scheduled air freight carriers. This international carrier provides a range of freight and mail services to shippers throughout its network of worldwide destinations.

"Being a Key Agent for international carriers is also part of our strategic plan", stated Mr. Chiu. He adds, "As a Key Agent, we have priority access to cargo space at lower rates, which provides us with the flexibility to more effectively consolidate our clients' cargo and the ability to maximize our revenue and profits. We already have a number of Key Agency relationships with major airlines and we will continue to pursue similar relationships with other major carriers in the Asia-Pacific Region".

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned subsidiary, Grand Power Express International Limited of Hong Kong. The company commenced business in Hong Kong in March 2002 primarily as an airfreight forwarding service, but also provides sea freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services for clients. In May 2006, the company commenced business operations in China through its subsidiary in Shanghai, China. The Grand Power Group is uniquely positioned in Asia, with its operating headquarters in Hong Kong and subsidiaries or supporting offices in Macau, Shanghai, Guangzhou, Taipei and Bangkok.

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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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