SOURCE: Infosmart Group, Inc.

June 07, 2007 09:25 ET

Hong Kong Production Facility Suffers Only Minimal Damage

Further Assessment Indicates Only Minor Damage to 4 of 27 Production Lines

Company Reaffirms 2007 Guidance of $36.0 - $38.0 Million in Revenue and $8.5 - $9.0 Million in Net Income

HONG KONG--(Marketwire - June 7, 2007) - Infosmart Group, Inc. ("Infosmart" or the "Company") (OTCBB: IFSG), Hong Kong's leading recordable digital versatile disk ("DVDR") manufacturing company, announced today that its Hong Kong production facility suffered only minor damage as a result of a fire that broke out in its headquarters building on May 21, 2007. Minor damage was caused to 4 of 27 production lines. The Company expects 23 lines to be running at 100% capacity by June 10, 2007, bringing total production capacity up to 85%. The remaining four lines will be repaired and placed back into production by June 18, 2007. Infosmart management anticipates 100% of machine repair costs will be covered by insurance and less than $50,000 of expenses will be paid by Infosmart to replace water damaged carpet, furniture and office equipment. The building has been reopened and electricity has been completely restored.

"We are pleased that the damage was minimal and the production interruption was short," stated Mr. Andy Kwok, President and CEO of Infosmart. "We are confident that our Brazil facility will more than make up for lost Hong Kong production and keep us on target for our 2007 revenue and net income projections of $36.0 - $38.0 million and $8.5 - $9.0 million, respectively."

About Infosmart Group, Inc.

Infosmart operates state of the art DVDR production facilities in Hong Kong and Brazil and is preparing to manufacture new writable High Density media (HD-DVDR). In addition, the Company expects to become one of the largest manufacturers of DVDR discs in Brazil and all of South America this year. Disc media will be the storage media of choice for years to come, whether as HD-DVDR for mature markets or traditional DVDR for developing markets. No other storage media available rivals its combination of high capacity, low cost and exceptional portability.

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This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Infosmart Group, Inc. (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, risks associated with international transactions, general economic conditions, availability of funds for capital expenditure by customers, availability of timely financing, cash flow, timely delivery by suppliers, ability to produce our DVDRs and their components, ability to maintain quality control, collection-related risks from international transactions, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company including those that are found in the Company's Annual Report on Form 10-KBS filed with the SEC on April 2, 2007, and subsequent Quarterly Reports on Form 10-QSB and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

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