Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

April 12, 2006 09:00 ET

Grand Power Logistics Completed the Macau Acquisition

HONG KONG, PEOPLE'S REPUBLIC OF CHINA and CALGARY, ALBERTA--(CCNMatthews - April 12, 2006) - Grand Power Logistics Group Inc. ("Grand Power") (TSX VENTURE:GPW) is pleased to announce that the Corporation and its wholly-owned Hong Kong based subsidiary, Grand Power Express International Limited ("GP Hong Kong") have completed the acquisition of Grand Power Express Forwarders Co. Ltd of Macau ("GP Macau"). The effective closing date for this transaction is January 1, 2006.

Under the terms of the agreement, as announced in the News Release of September 13, 2005, GP Hong Kong has acquired 100% of the shares of GP Macau for HK$13.75 million (approx. CDN$2.17 million). The payment to the shareholders of GP Macau for the acquisition is comprised of HK$3.75 million in cash and HK$10,000,000 in common shares of the Corporation, which is the equivalent of 3,162,760 shares at a deemed price of CDN$0.50 per share.

GP Macau is an airfreight agent, providing inbound, outbound and logistics cargo services in Macau. As well, GP Macau has a CEPA (Closer Economic Partnership Arrangement) license, allowing GP Macau to conduct logistics business in Shanghai, the Peoples Republic of China (PRC). CEPA is a free trade agreement between China and Hong Kong and Macau. Currently, only companies based in Hong Kong and Macau can obtain a CEPA license, giving them a strategic advantage over other foreign logistics companies.

In addition, with this license, GP Macau can expand its logistics business to other regions in China. It is currently applying for a local business license to establish an operation in Guangzhou, the capital city of Guangdong province. Guangzhou, with a metropolitan population of over 10 million, is the largest commercial and industrial centre in southern China, where many foreign companies have set up manufacturing facilities and where the logistics sector plays an important role in the region's economic activities. According to local customs sources, bilateral trade between Guangdong and Hong Kong amounted to US$89.91 billions in 2005.

"We are very excited on this acquisition. With the CEPA license, the Macau acquisition will be a springboard for us to move into the huge Chinese market, which is an important part of our strategic plan. With the Chinese economy growing rapidly and the logistics sector itself growing at approximately 20% annually, this is a tremendous opportunity for us to expand our business into China. As for GP Macau, once it is under our group, we expect that its profitability will improve significantly," says Ricky Chiu, the President and CEO of the Corporation.

For the years of 2003, 2004 and 2005, GP Macau had revenues (in Macanese Patacas) of 27,154,000 MP, 36,612,000 MP and 43,956,000 MP respectively, and a net profit after taxes of 154,000, 179,000 and 426,000 MP respectively. As at December 31, 2005, GP Macau has Retained Earnings of 1,769,000 MP, Total Assets of 15,105,000 MP and a Net Shareholders' Equity of 3,968,000 MP. As at March 31, 2006, 1 MP exchanges for CDN$0.146238.

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned subsidiary, Grand Power Express, which commenced business in Hong Kong in March 2002 as an airfreight forwarding service. Although Grand Power Express is principally an airfreight provider, it also provides sea freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services for clients. The Grand Power group is uniquely positioned in Asia, with its headquarters in Hong Kong and supporting offices in Macau, Shanghai, Guangzhou, Taipei and Bangkok.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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