ZHEJIANG PROVINCE, China, April 8, 2008 /Xinhua-PRNewswire-FirstCall/ -- China 3C Group (OTC Bulletin Board: CHCG), a leading retailer and distributor of consumer and business products in China, announced that the Company has signed a wholesale supply agreement with Wal-Mart China to sell audio electronic equipment, including radios, CD players and stereo equipment at six Wal-Mart stores in the Zhejiang province beginning in April 2008. This agreement provides China 3C Group with the possibility of expanding its distribution into other Wal-Mart stores located in Eastern China as well as in other surrounding provinces in China in the future. Including Wal-Mart’s six stores in the Zhejiang province, Wal-Mart currently has thirteen stores in Eastern China and eighty-one stores overall in China.
Mr. Wang Zheng-gang, China 3C Chairman and Chief Executive Officer commented, “We are thrilled that Wal-Mart is working with China 3C to sell our audio products in their stores. While this agreement is initially expected to have a limited material impact to our business, we believe there is an opportunity to expand our relationship with this retailer in the future to include a broader range of products and increase the total number of stores we have with this partner. Our business is well-suited to work with leading retailers such as Wal-Mart due to our broad product selection, competitive pricing and our ability to operate in a large number of store outlets. Wal-Mart has a strong brand presence and operating capability in China, which we believe can provide China 3C with a very good platform for growth in the Zhejiang province and in other surrounding provinces in the future. We believe this supply agreement further validates the strength of our operating model.”
Mr. Michael Chen, Wal-Mart district manager for the Zhejiang province commented, “Wal-Mart is pleased to reach an agreement with China 3C Group to sell its products in our six stores in the Zhejiang province. China 3C Group is a major provider of electronic consumer goods in Eastern China with many leading consumer brands in its portfolio. We believe the presence of their products in our stores has the opportunity to enhance the overall product offering and enrich the shopping experience for our customers. We look forward to strengthening our relationship with China 3C in the months ahead.”
About China 3C
China 3C is a leading wholesale distributor and retailer operating over 900 retail outlets in Eastern China. The Company specializes in selling 3C products which include: cell phones and accessories, fax machines and printers, consumer electronics, computer and computer-related products and small home appliances. Among China 3C’s primary attributes is its efficient distribution network and rapid logistics system. For more information, visit http://www.china3cgroup.com .
Forward-looking Statements
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