SOURCE: Infosmart Group, Inc.

January 09, 2007 16:01 ET

Infosmart Achieves First Brazil Milestone: 20 Production Lines Shipped to Brazil

20 Production Lines Shipped From Hong Kong to Brazil; Production Slated to Begin Q1 '07

HONG KONG -- (MARKET WIRE) -- January 9, 2007 -- Infosmart Group, Inc. ("Infosmart" or the "Company") (OTCBB: IFSG), Hong Kong's leading recordable digital versatile disk ("DVDR") manufacturing company, announced today that it has shipped 20 lines for optical disc production from its Hong Kong facility to its manufacturing facility under construction by its Brazilian subsidiary, Infosmart (Discobras), in Bahia, Brazil. With these production lines, Infosmart (Discobras) will have the flexible capacity to produce 3.5 million DVDRs (4.7 GB capacity discs used for movies) or 7.5 million recordable compact discs (700 MB capacity discs used for music) per month, or a mix of both. With construction of Infosmart (Discobras) nearing completion, the Company anticipates installation of the equipment to begin by mid-January 2007 and initial production runs to begin by the end of this month. Management expects that production will thereafter be ramped up from February through April 2007 to the plant's full capacity.

Projected Timetable:
-- Early January: production facility construction completed
-- January - February: production lines installed
-- Late January: initial test runs completed
-- Transition production projections:
   - February: 2 million discs
   - March: 5 million discs
   - April:  7.5 million discs
-- After April 2007, the Company expects the plant to continue to run
   at or near full capacity (3.5 million DVDRs or 7.5 million recordable
   compact discs, or a mix of both)
"Successfully transferring these production lines was the first major milestone toward becoming one of the largest manufacturers of DVDRs in Brazil," stated Andrew Chang, Chairman of Infosmart. "We are pleased to report that construction is on schedule and we are looking forward to commencing production by February 2007."

About Infosmart Group, Inc.

Infosmart operates a state of the art DVDR production facility in Hong Kong and is preparing to manufacture new writable High Density media (HD-DVDR). In addition, the Company expects to become the largest manufacturer of DVDR discs in Brazil in the second quarter of 2007. Optical disc media will be the storage media of choice for years to come, whether as HD-DVDR for mature markets or traditional DVDR for developing markets. No other storage media available rivals its combination of high capacity, low cost and exceptional portability.


This press release contains forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Infosmart Group, Inc. (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, risks associated with international transactions, general economic conditions, availability of funds for capital expenditure by customers, availability of timely financing, cash flow, timely delivery by suppliers, ability to produce our DVDRs and their components, ability to meet projected timetables, ability to maintain quality control, collection-related risks from international transactions, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company including those that are found in the Company's Current Reports filed with the SEC on Form 8-K on August 24, 2006 and subsequent Quarterly Reports on Form 10-QSB and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

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