Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

August 18, 2008 07:48 ET

Grand Power Signs LOI to Acquire Land at Shanghai Pudong International Airport

To form joint venture to finance acquisition of land and construction of bonded warehouse

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - Aug. 18, 2008) - Grand Power Logistics Group Inc. ("Grand Power" or the "Company") (TSX VENTURE:GPW) today announced that it has entered into two agreements that will accelerate its growth in the burgeoning logistics sector in China. The first agreement is a letter of Intent ("LOI") with government authorities in Shanghai to acquire the land use rights for approximately 100,000 square meters of development property (the "Property") at Shanghai Pudong International Airport ("Pudong") to build and operate bonded and non-bonded warehouse and logistics facilities (the "Facilities"). The Property is located next to the newly opened third runway, which is dedicated primarily to air cargo shipments. Pudong ranks globally as one of the highest volume airports for cargo and mail, and is the only airport in the world where both UPS and DHL have hubs. The term of the land use rights for the Property is 50 years.

The second agreement is a memorandum of understanding ("MOU") with one of the world's largest industrial property groups (the "Joint Venture Partner") to form a joint venture for the finance, construction and operation of the Facilities. Under the terms of the MOU, Grand Power will contribute the Property and operate the Facility. The Joint Venture Partner will secure the necessary funding for the acquisition of the Property, as well as for the operation, construction and development of the Facility. Per the terms of the MOU, the name of the Joint Venture Partner as well as all terms for the joint venture, including acquisition costs and construction estimates will not be disclosed until a definitive agreement has been completed. The definitive agreement is subject to the completion of satisfactory due diligence and board and regulatory approval.

"Grand Power is very excited about the opportunity the Pudong project represents," stated Ricky Chiu, president and CEO of Grand Power. "Some of the world's largest cargo carriers and logistics companies are investing tremendous sums to establish their own facilities near us as the volume of China exports and imports continue to grow at a staggering pace. Our strong working relationship with the Shanghai government has enabled us to secure this highly coveted piece of land under very favorable conditions. We are also very fortunate to have the experience and financial backing of our Joint venture Partner, which allows us to move forward with the development of the Facilities without diluting our shareholders. Once completed, the Pudong Facility will position Grand Power to expand revenues and margins by broadening its service offering and providing customers a more complete logistics solution."

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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