Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

June 02, 2006 09:00 ET

Grand Power Reports Continued Revenue Growth in First Quarter 2006

CALGARY, ALBERTA AND HONG KONG, PEOPLE'S REPUBLIC OF CHINA--(CCNMatthews - June 2, 2006) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW) ("Grand Power") today announced its consolidated financial results for the 3 months ended March 31, 2006, which include the operating results of its wholly owned subsidiaries, Grand Power Express International Ltd ("Grand Power Express") of Hong Kong and its subsidiaries, United Air Cargo and Express Co. Ltd ("United Air Cargo") and Grand Power Express Forwarders Co. Ltd. of Macau ("GP Macau").

Financial Highlights (CDN$) for 3 Months Ended March 31, 2006:

- Sales revenue increased by 25.8% to $9,839,955 compared to $7,823,779 for the first 3 months of 2005.

- Tonnage shipped by the Corporation increased by 24.25% to 5,290 tonnes compared to 4,257 tonnes in the corresponding period in 2005.

- Net earnings increased 50.6% to $77,028 compared to $51,151 for first 3 month of 2005.

- Basic and diluted earnings per share for the period were $0.004 per share.

"Grand Power continues to demonstrate its ability to grow" said Ricky Chiu, President and CEO of Grand Power Logistics Group. He adds "The first quarter is traditionally the weakest quarter of the year with the December Holiday season ending near the beginning of the quarter and then the Chinese New Year Holiday in late January. This affected the overall airfreight business for both January and February, but our results were in line with our expectations."

Mr. Chiu said "Several strategic initiatives that we began prior to the quarter contributed to our continued growth. The acquisition of GP Macau provided us with much better access to the China market. In February, we became IATA Registered Cargo Agent allowing us to promote our brand name in the freight forwarder market. This combined with new Key Agent appointments and new contracts were some of the contributing factors."

Looking ahead to the future, Mr. Chiu said "With the recent commencement of our business in Shanghai and new Key Agent appointments we will be adding sales and support staff as we expand our presence in China. We continue to see strong growth in the region and we intend to be a participant."

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned subsidiary, Grand Power Express International Limited of Hong Kong. The company commenced business in Hong Kong in March 2002 primarily as an airfreight forwarding service, but also provides sea freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services for clients. In May 2006, the company commenced business operations in China through its subsidiary in Shanghai, China. The Grand Power Group is uniquely positioned in Asia, with its operating headquarters in Hong Kong and subsidiaries or supporting offices in Macau, Shanghai, Guangzhou, Taipei and Bangkok.

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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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