SOURCE: Regal Group, Inc.

October 05, 2010 09:00 ET

Regal Group Subsidiary UHF Logistics Steps Into Retail With ZTE Subsidiary

PHOENIX, AZ--(Marketwire - October 5, 2010) -  Regal Group, Inc. ("Regal" or the "Company") (OTCBB: RGLG) and its wholly-owned subsidiary, UHF Logistics Ltd ("UHF") announced today that its Chinese operating subsidiary, Shenzhen Rui Pu Da Electronic Technology Company Ltd. ("RPD") has entered into a strategic cooperation agreement with ZTE Chang Tian Information Technology Ltd. (ZTE-V), an information technology subsidiary of Zhong Xing Telecommunications Equipment Company Limited ("ZTE"), China´s largest listed telecommunications manufacturer and wireless solutions provider, to become the exclusive provider of RFID solutions to ZTE-V's extensive client base in the burgeoning Chinese clothing industry.

Under the agreement, RPD and ZTE-V will jointly develop RFID applications that ZTE-V will market to the large and expanding Chinese apparel industry to improve customer satisfaction and increase sales by offering retailers real-time visibility into inventory and product movement, enhance store productivity and limit loss prevention. ZTE-V is a leading provider of comprehensive information technology solutions across industry sectors, from system planning and design, independent research and development to full project implementation.

"Our agreement with ZTE-V represents a major opportunity for UHF Logistics and signifies that our RFID products and solutions are increasingly recognized and valued by some of the largest and most established companies in China," said UHF Logistics CEO Sammul Su. The size of the Chinese clothing industry is huge and the National Bureau of Statistics of China recently reported 2010 clothing sales to August 31 of US$52 billion, an increase of 23.7% over the same period for 2009.

Su added, "The evolution of RFID as an enabling technology has prompted retailers worldwide to investigate the implementation of the technology to increase process efficiency, expand product and demand visibility, control shrink management, and increase profits. In addition to the traditional use of RFID technology to support supply chain management, by efficiently maintaining and counting inventory, our RFID solutions can also provide significant product up-selling as well as cross-selling opportunities and enhance customer loyalty. We will item-level RFID tag all clothing products and customer loyalty cards in each individual store, thus creating significant cross-selling opportunities on a real-time basis as well as boost customer satisfaction through personalization." 

This cooperation agreement with ZTE-V provides validation of the Company's growing reputation as a leading edge developer of RFID solutions for the clothing and apparel industry. Since early 2010, the Company has been working with Asian retail clothing giant, Hong Kong-listed Lilanz Stores, to develop and test an integrated RFID inventory and sales management solution for their chain of retail stores in China. Lilanz is using RFID technology to manage inventory, increase cross sales, improve the knowledge of their staff and enhance customer experience. Lilanz operates a chain of more than 2,500 clothing stores across Asia. 

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About Regal Group, Inc.

Regal Group, Inc. is a publicly traded company with headquarters in Phoenix, Arizona. Regal is strategically positioning itself in key industry sectors in China and recently completed the acquisition of UHF Logistics Ltd., a HK-incorporated holding company, which, through its wholly owned Chinese operating subsidiaries, is focused on the development, marketing and implementation of UHF RFID products and solutions in China since 2006. Regal trades on the NASDAQ OTC BB under the ticker symbol: RGLG.

ZTE is a leading global provider of telecommunications equipment and network solutions. Founded in 1985, ZTE Corporation is the first Chinese company to hold both A shares on the Shenzhen Stock Exchange and H shares on the Main Board of The Stock Exchange in Hong Kong. ZTE has the widest and most complete product range in the world covering virtually every sector of the wired, wireless, service and terminals markets. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries. Since 2003, ZTE has been extremely committed in RFID technology and successfully developed a series of reliable and compatible RFID products with strong proficiency in radio frequency, antenna, digital logic hardware, embedded software, system networks, back end administration and business applications.

Forward-Looking Statements & Risks

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that Regal and/or its subsidiaries can identify and successfully negotiate business prospects in Asia, and that the Company can successfully operate such prospects. Actual results may differ materially from those currently anticipated due to a number of factors and risks beyond the reasonable control of the Company.

In addition to the risks associated with forward-looking statements, statements in this news release are subject to additional risks, which include, among others, the corporate disclosure, governance and regulatory requirements of the Peoples' Republic of China (the "PRC"), and PRC regulations relating to, among others, cross-border mergers and acquisitions, product liability and currency exchange rates. Even though the transaction is completed, anticipated synergies or other intended benefits of the transaction may not be realized, and the prospects of the combined entity will remain subject to all the general risks associated with the RFID industry, the public securities markets and risks related to doing business in China, such as the PRC's economic, political and social environment, and matters relating to PRC taxes, repatriation of profit and currency conversion, acquisition and appropriation of land use rights, foreign investments, permits and business licenses, employment contracts, government intervention, shareholders' rights and enforcement of judgments, as well as the developing PRC legal system. The Company cautions that the foregoing list of material risks is not exhaustive.

When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

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