Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

October 14, 2008 08:30 ET

Grand Power Increases Its Airfreight Cargo Capacity

CALGARY, ALBERTA AND HONG KONG, CHINA--(Marketwire - Oct. 14, 2008) - Grand Power Logistics Group Inc. ("Grand Power" or the "Company") (TSX VENTURE:GPW), a leading China-based international logistics provider, is pleased to announce that its wholly owned subsidiary Grand Power Express International (China) Limited has significantly expanded its airfreight business through new direct sales contracts with ten additional airlines, increasing the number of airlines the Company has under contract to 15. The addition of the ten new airlines enhances the Company's freight forwarding and capacity and provides Grand Power wider coverage of global destinations, including Europe, India and North America. The additional capacity will also provide Grand Power more flexibility in cargo arrangement and delivery routes, as well as providing the Company the ability to offer its clients a broader range of delivery options.

With the additional routes and cargo capacity from the new carrier relationships, Grand Power estimates that total tonnage shipped could increase by as much as 70%, subject to market conditions. The Company will also benefit from added pricing power due to the volume discounts provided by the carriers as a result of the long-term commitments to cargo space. To support the rapid growth of the airfreight business, Grand Power has added approximately 80 staff to its China based operation since the beginning of the year, bringing the total number to 200 at September 30, 2008. Many of the new airline contracts were initiated through existing relationships owned by the new staff.

"The added carriers not only boost the scale of our air cargo operations, they also allow us to broaden the scope of both the import and export business and maximize our warehousing capabilities," stated Ricky Chiu, president and CEO of Grand Power. "The economies of scale realized throughout our operations are expected to improve margins and profitability."

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. www.grandpowerlogistics.com

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