SOURCE: Infosmart Group Limited

October 25, 2006 16:59 ET

Infosmart Group, Inc. Announces Q3, Q4 and Full Year '06 Revenue Guidance

HONG KONG -- (MARKET WIRE) -- October 25, 2006 -- Infosmart Group, Inc. (OTCBB: IFSG)

--  Q3 '06 Revenue Guidance: $7.0 Million; Net Income Guidance:  Breakeven
--  Q4 '06 Revenue Guidance: $7.0 - $7.5 Million; Net Income Guidance:
    $1.1 - $1.25 Million
--  Full Year '06 Revenue Guidance: $26.0 - $27.0 Million; Net Income
    Guidance: $3.0 - $3.25 Million
Infosmart Group, Inc. ("Infosmart" or the "Company") (OTCBB: IFSG), a Hong Kong-based recordable digital versatile disk ("DVDR") manufacturing company, announced today Q3, Q4 and full year '06 revenue and net income guidance figures.

Infosmart anticipates third quarter revenue of approximately $7.0 million and anticipates net income at breakeven. Excluding approximately $1.2 million of anticipated one-time charges associated with its reverse merger and private placement, which is being taken as an expense in the third quarter, Infosmart's guidance for Q3 '06 pro forma net income increases to approximately $1.2 million.

The Company anticipates fourth quarter revenue of approximately $7.0 - $7.5 million and net income of approximately $1.1 - $1.25 million.

Infosmart achieved $12.5 million in revenue during the first half of 2006. Combined with the above third and fourth quarter estimates, the Company anticipates revenue for the full year '06 to be approximately $26.0 - $27.0 million and net income of approximately $3.0 - $3.25 million.

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 will soon become the largest manufacturer of DVDR discs in Brazil. 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 may contain 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 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-Q 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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