Comtech Effects Reverse Stock Split SHENZHEN, China, Jan. 14 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (OTC:COMT) (BULLETIN BOARD: COMT) announced today that it has effected a one-for-two reverse split of its common stock. As a result of the reverse split the total number of shares of the Company's common stock outstanding was reduced from 50,722,050 shares to 25,361,025 shares. The par value of the common stock will remain at $0.01 per share and the number of authorized shares will remain at 200,000,000 shares of common stock. Comtech Group will make cash payments in lieu of fractional interests resulting from the stock split. In connection with the stock split, the Company's ticker symbol was changed to "COMT." The reverse split is intended to raise the Company's share price above $5, as required to gain compliance with Nasdaq's listing requirements. Each stockholder's percentage ownership interest in Comtech Group and proportional voting power remains unchanged after the reverse stock split except for minor changes and adjustments resulting from fractional shares. The rights and privileges of the holders of common stock are substantially unaffected by the reverse stock split. The Company's transfer agent, American Stock Transfer and Trust, will mail instructions to stockholders of record regarding the exchange of certificates representing shares of common stock post split. For additional details regarding these changes, please refer to the Company's Form 8-K that will be filed with the Securities and Exchange Commission on January 14, 2005. About Comtech Comtech Group, Inc. is a leading module design solutions provider in China, focused on the mobile handset and telecom equipment industries. The Company designs solutions for mobile device products, including liquid crystal display (LCD) modules, camera modules, persistent storage modules, input/output modules, sound system and power supply modules. In the telecom equipment industry Comtech targets optical solutions, data communication solutions, public switched telephone network (PSTN) switching and wireless base stations. Safe Harbor Statement This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about the implementation of a reverse stock split and possible listing on Nasdaq and other statements containing forward looking terminology such as "may," "expects," "believes," "anticipates," "intends," "expects," "projects," or similar terms, variations of such terms or the negative of such terms. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein. DATASOURCE: Comtech Group, Inc. CONTACT: Asia Pacific, Hope Ni, Chief Financial Officer of Comtech Group, Inc., ; or North America, Jason Golz, +1-415-439-4500, or , or Jordan Goldstein, +1-415-439-4500, both of Financial Dynamics, for Comtech Group, Inc. Web site: http://www.comtech.com.cn/

Copyright