SOURCE: Infosmart Group, Inc.

December 18, 2006 09:25 ET

Infosmart Group, Inc. Completes Consolidation of Two Hong Kong Facilities

Company Increases Efficiencies and Reduces Operating Costs by More Than $400,000 per Year

HONG KONG, CHINA -- (MARKET WIRE) -- December 18, 2006 -- 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 completed the consolidation of its Hong Kong production facilities by shifting capacity from its Chai Wan facility to its Tsuen Wan facility. Ten lines were moved from the Chai Wan facility to the Tsuen Wan facility, bringing the total number of lines at Tsuen Wan to 29 with a maximum capacity of 7.5 - 8.0 million discs per month.

This consolidation is part of the Company's long-term strategic plan to increase efficiencies and reduce costs, without cutting output. The elimination of the Chai Wan facility saves the Company approximately $26,500 per month, equivalent to $318,000 per year, on electricity costs and approximately $7,600 per month, equivalent to $91,200 per year, on salary expenses.

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 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-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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