SOURCE: China-AsiaStocks.com; Infosmart Inc.

October 31, 2006 09:00 ET

Infosmart Group, Inc., a Fast Growing and Profitable Recordable DVD (DVDR) Manufacturer, Looks to Expand Existing DVDR Capabilities to Enter HD DVD Market

China-AsiaStocks.com Introduces New Featured Company Infosmart as They Penetrate Growing Brazilian Market With New DVDR Production Facility

POINT ROBERTS, WA -- (MARKET WIRE) -- October 31, 2006 -- www.China-AsiaStocks.com (CAS), an investor and industry news portal for the China-Asia sector, introduces Infosmart Group, Inc. (OTCBB: IFSG) as a new featured company. Infosmart is a profitable writable DVD (DVDR) manufacturer with a large scale production facility in Hong Kong equipped with production lines that will soon be upgraded to produce new writable High Density (HD DVD) media. The Company is also building a 6.4 million disc per month capacity DVDR factory in Brazil where they are seeking to become the largest manufacturer of writable DVDs in the region. Infosmart is working to take advantage of Brazil's expected annual demand of 600 million discs, equivalent to approximately $270 million.

Currently Infosmart is reaching production levels within their Hong Kong facility of over 11 million discs per month, generating $12.5 million in revenue during the first half of 2006. Infosmart anticipates revenue for the full year (2006) to be approximately $26.0 - $27.0 million with a net income of approximately $3.0 - $3.25 million.

With the increase in the worldwide number of installed DVDR drives in personal computers moving from 80 million units in 2004 to an anticipated 397 million units in 2008, the global demand for DVDR discs is projected to rise from 2.5 billion in 2004 to near 10 billion units in 2008.

The Company continues to grow its market presence with its ability to upgrade production lines to take advantage of the next generation of optical storage media, HD-DVDRs. According to analyst Wade Holden with Kagan Research, "By 2009, VHS will be virtually extinct and high-definition DVD revenue should grow to more than $2.6 billion. By 2015, VHS will be history and high-definition DVD (HD-DVD) will be the major-market shareholder with $18.3 billion in revenue."

Infosmart’s Hong Kong manufacturing facility has 44 production lines, 32 of which can be upgraded to produce HD-DVDR discs. The Company plans to purchase 18 additional upgradeable lines and ship 14 to Brazil together with the non-upgradeable lines. The Hong Kong facility will then have 36 upgradeable production lines with a potential capacity of approximately 9 million DVDR discs or 6.1 million HD-DVDR discs per month. The Company anticipates beginning HD-DVDR production by mid-2007 and thereby boosting revenues by over $5.6 million.

Infosmart is looking to exploit strong demand in Brazil and the regional South American market, and the 20% annual DVD sales growth in Latin America. According to the Company, Brazil's market is less competitive and offers higher gross margins than other global markets and should grow strongly for many years to come. With production planned to begin in mid-December, and its successful market penetration experience in Hong Kong to build from, Infosmart aims to be the top DVD manufacturer in Brazil within the next 12 months.

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China-Asia Featured Portal Sponsor: www.Infosmart.com.hk (CAS and DMS are compensated by Infosmart as disclosed in disclaimer)

Infosmart Group, Inc., (OTCBB: IFSG) For More Info: http://www.china-asiastocks.com/CO/IFSG/ or visit: www.Infosmart.com.hk

China-Asia Blog: http://china-asiastocks.blogspot.com/

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