Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

March 14, 2008 09:30 ET

Grand Power Approved for HSBC Credit Facility Increase

CALGARY, ALBERTA AND HONG KONG, CHINA--(Marketwire - March 14, 2008) - Grand Power Logistics Group Inc. ("Grand Power") (TSX VENTURE:GPW) is pleased to announce that its principal operating subsidiary, Grand Power Express International Limited ("GP Express") of Hong Kong, has received approval for an increase in its overdraft facility with Hong Kong Shanghai Banking Corporation ("HSBC") of Hong Kong. Grand Power will see its overdraft limit increased from HK$18.5 million (approx C$2.37 million) to HK$40 million (approx C$5.13 million). Beginning with its first credit facility with HSBC in January 2005, this is the fourth time Grand Power has been granted an increase on its credit limit. The increase will take effect in the middle of April, 2008.

In addition to the increase of its overdraft limit, Grand Power's accounts receivable loan with HSBC has also been increased from HK$8 million (approx. C$1.03) in 2005 to HK$65 million (approx. C$8.3 million) currently.

Grand Power has also established a relationship with China Construction Bank of Asia ("CCBA", formerly Bank of America (Asia) Ltd.) since November 2004. Currently, Grand Power's combined overdraft line, bank guarantee line & corporate profit tax loan with CCBA totals HK$24.4 million (approx C$3.1 million).

All totaled, Grand Power's banking credit facilities have been increased from HK$107.9 million (approx C$13.82 million) to HK$129.4 million (approx C$16.58Mm). The increased credit line allows for a high degree of flexibility to ensure cash is available during peak seasons and periods of expansion.

Mr. Ricky Chiu, President and CEO of Grand Power Logistics Group, said "We are very pleased that HSBC continues to be a strong and committed supporter of our need for larger credit facilities to finance our rapid growth. As we aggressively move into more Directs Sales, which have significantly higher profit margins than our traditional core business of air freight co-loading, we are confident that we have the financial flexibility to handle customers of any size and can focus on our implementing our growth strategy." (See press release dated February 26 for updated growth strategy).

Chiu adds, "We look forward to another successful year, with the continued assistance of our bankers and credit facilitators working with us to achieve our goals."

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, Jiangmen and Chenghai. 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.

Contact Information