Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

July 03, 2008 08:30 ET

Grand Power Becomes a Member of China's Cargo Accounting Settlement System

CALGARY, ALBERTA AND HONG KONG, CHINA--(Marketwire - July 3, 2008) - Grand Power Logistics Group Inc. ("Grand Power" or the "Company") (TSX VENTURE:GPW) today announced that Grand Power Express International, a fully owned subsidiary of Grand Power has become a member of the Cargo Accounting Settlement System (CASS) in China. This recently acquired membership is only available to service providers who have been previously granted the CATA (Bronze) License, which allows foreign owned companies such as Grand Power to deal directly with all airlines in China. There are currently only 35 agents with CASS memberships in China.

CASS is the accounts settlement system operating under the International Air Transport Association (IATA), and is designed to simplify the billing and settling of accounts between airlines and freight forwarders. Grand Power has been a long-standing member of IATA in Hong Kong, and with sponsorship from numerous airlines due to a great track record, the Company was automatically qualified to join CASS as a member.

Grand Power provided a RMB 2.2 million guarantee with the Construction Bank which acts as CASS's clearing bank in China. While Grand Power's Bronze License allows the Company to directly work with airlines, the CASS membership provides additional benefits including less risk for airlines concerning receivables and creditors. The main advantage of the CASS membership is that the RMB 2.2 million guarantee can be leveraged across all work done with multiple airlines, rather than requirements from individual airlines. Further, CASS will act as the intermediary between Grand Power and all airlines, thus all transactions and payments will go through CASS.

"Grand Power is very excited to obtain membership in the Cargo Accounts Settlement System in China. We can now conduct business directly with more carriers, who decline to work with non-CASS members." noted Ricky Chiu, President and CEO of Grand Power Logistics Group. "Obtaining the membership will allow us to increase profit margins as we consolidate more of our shipments and obtain more competitive rates directly from the carriers, instead of co-loading as we have done in the past. In addition, we also improve cash flow, as we only have to put up a guarantee with the CASS, and not with each individual airline. This milestone further enhances our competitive position in China's rapidly growing freight forwarding industry."

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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