ACL Semiconductors Inc. Reports 12.6% Net Sales Increase for Second Quarter 2011

Mr. Chung-Lun Yang, Chairman and Chief Executive Officer of ACL Semiconductors Inc., commented, "The second quarter of 2011 demonstrated strong growth in sales, with our net sales increasing 12.6%, as compared to the same period last year. While we did see a tough quarter due to the economic conditions and the effect on NAND flash prices, we don't expect this trend to continue."

For the quarter ended June 30, 2011, ACL Semiconductors reported net revenue of $100.8 million, an increase from $89.5 million, or 12.6%, compared to the same period last year. The year-over-year revenue growth was primarily due to an increase of sales volume in the PRC market. Net loss for the quarter ended June 30, 2011 was $2.7 million compared to net income of $0.6 million in the same period last year. The year-over-year decrease in net income was primarily a result of destabilizing NAND flash prices in the second quarter. Loss per diluted share was $0.10 for the quarter ended June 30, 2011 compared to the gain of $0.02 per diluted share in the same period last year.

Mr. Yang continued, "We faced a tough second quarter due to global macro economic conditions and the crisis in Japan. NAND flash prices were down and, although we managed to maintain our sales turnover, the market conditions forced us to sell below our costs. Although the market conditions are still weak in the third quarter, we decided to use this period to expand our customer network. We have closely discussed this initiative with our suppliers and they are willing to support our strategy with a very favorable offer. We believe these adjusted terms will bring a greater profit margin to ACL moving forward. As a distributor of the world's largest NAND flash supplier for the Hong Kong and Southern China regions, we are confident that our gross profit will increase in the second half of this year."

About ACL Semiconductors Inc.

ACL Semiconductors distributes electronic components under the "Samsung" brand name to the Hong Kong and South China markets. The memory chips are used in everything from mobile phones, digital cameras and laptop computers to MP3 players and Wi-Fi products. For more information about ACL Semiconductors please visit ACL Semiconductors' corporate website at http://www.acl-semicon.com.

Forward-Looking Statements

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