Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc.

March 17, 2008 09:30 ET

Grand Power Dramatically Expands Shanghai and Guangzhou Operations

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - March 17, 2008) - Grand Power Logistics Group Inc. ("Grand Power")(TSX VENTURE:GPW) is pleased to announce the recent expansion of its Shanghai and Guangzhou operations, adding approximately 91 additional employees. This will bring Grand Powers total employee number to over 250 by the third quarter and position the company to significantly increase its revenue in not only its traditional core freight forwarding segment, but also in direct sales, ocean shipping, warehousing and customs brokerage.


A team of projected 71 new staff, with experience and connections in Airfreight and Ocean Shipping, will join Grand Power's "Shanghai Station" during 2008, of which 31 staff will join during the first quarter and the remaining by the third quarter. Among the 71 new staff, 59 (83%) are revenue generating staff with the remaining being supporting staff. This brings the total employee head count in Shanghai to approximately 121.

Shanghai Station has been in operation since October 2004 and currently has 50 employees. It was mainly in the airfreight business, until it expanded into warehouse operations in November 2007 by bringing a warehouse team of 31 staff in from another Shanghai based company. The warehouse of 1,264 square meters is situated 2 km outside the Shanghai Pudong airport, handling general goods, dispatching and cargo assembly. The warehouse has a system linked with the Shanghai Pudong Airport to check cargo custom clearing status and is able to transport cargo to the Airport for loading within half an hour.

Apart from this general warehouse, Shanghai Station has also established a bonded warehouse space of 1,653 square meters inside the Shanghai Pudong Airport. Now, Grand Power with its CATA license (or bronze license as it is commonly called) can handle the whole cargo process for clients from assembly of cargo, storage, custom brokerage to final loading. The bonded warehouse will be used for handling high valued goods with high margin for the integrated services it can provide.

Grand Power will restructure its Shanghai Station's Airfreight Department into various segments, including Airfreight Sales, Air Space Control, Oversea Contact, Export Airfreight and Import Airfreight. In addition, the Shanghai Station will also establish segments in the ocean freight area to include Ocean Sales, Ocean Space Control, Ocean Oversea, Ocean Customer Service and Ocean Operations. The new structure in Shanghai will provide Grand Power a solid infrastructure for further expansion.

Heading up operations will be Mr. Michael Meng, as the Director of Business Development, Shanghai. Michael joined Grand Power in late November 2007, with a career in the logistics industry spanning over 25 years with companies such as Dimerco Express (a large Taiwan freight forwarder) and Eurasia/Fan Cheng (one of the largest shipping companies in China). He has lived in New York, San Francisco, Los Angeles, Taipei and Shanghai working for these logistics companies. He had formerly lead Dimerco's Greater China development as the Director of Sales & Marketing based in Shanghai. In his last position with Eurasia, he was the Director of Overseas Development.


A team of projected 20 new staff will join Grand Power's "Guangzhou Station" by the end of March 2008 bringing the total employee number to 36. Out of the 20 staff, 17 (85%) are revenue generating staff. These new staff have extensive experience and business relations in both airfreight and the ocean shipping sectors in China.

Guangzhou Station has been in operation since September 2006. It currently has 16 employees with 9 revenue generating staff and 7 supporting staff. As an operation centre in the Greater Pearl River Delta, Guangzhou Station's back office also supports a sales team of 14 employees in Chenghai, Jiangmen and Dongquan, which achieved substantial growth in direct customer sales during 2007.

Mr. Ricky Chiu, President and CEO of Grand Power Logistics Group, said "We are very excited about all the new additions to Grand Power. As a young, dynamic and fast growing company, we are a very exciting organization for people to want to join and become part of our successful and growing team. Expanding into other segments of the logistics industry also means not only potentially higher profit margins, it brings us even closer to our original vision of creating and becoming a leading complete full service logistics provider in Hong Kong, China and the rest of Asia."

Chiu adds, "In addition, with more direct sales, ocean sales, warehousing and customs brokerage, Grand Power has the platform in place to become a global name in the logistics 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, 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.

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