Organized by the provincial government of Zhejiang, the Promotion Week was aimed to strengthen the economic ties and expand cooperation between Zhejiang province and Hong Kong. The Conference gathered 20 well-known Zhejiang companies from Hangzhou, Ningbo, Zhoushan and Yiwu city and more than 130 Hong Kong companies. The Hong Kong companies included many leading international logistics companies such as Hutchison Whampoa Limited, BW Group and Brightoil Petroleum Group. China 3C Group was one of the two companies representing Yiwu City to attend the Conference.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer of China 3C, commented: "We were honored to represent entrepreneurs from Yiwu City to attend the Conference. The Conference provided a great platform for China 3C to meet many leading global transport and logistics companies and learn from their expertise and solutions. It also offered a good opportunity for us to promote our brand. We look forward to future cooperation with Hong Kong logistics companies to expand our transportation network."

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

The stores are located at 37-39 Xin An East Road, Jiande city, Zhejiang province (1,743 square feet) and B-4 Yintai Tiandi, 168 Jie Fang East Road, Jinhua city, Zhejiang province (1,754 square feet). Both stores offer a wide selection of cell phones, office appliances, computers and digital products.

Mr. Zhenggang Wang, CEO of China 3C Group, commented, "The opening of the new direct stores is in line with China 3C's franchise strategy. We are pleased to build a concept that can establish a more recognizable brand name for our business and increase customer loyalty. We remain focused on the build out of direct and franchise stores to improve our revenue and profit performance. We believe we have the right plan and managerial team in place to execute on our mission and establish YOSEN as a leading electronics chain in Eastern China in the next two to three years."

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

The Shanghai Contract Credit Commission, which is managed by the Shanghai Administration of Industry and Commerce, is the largest corporate credit rating agency in Shanghai. Out of nearly 400,000 Shanghai-based enterprises covered by The Shanghai Contract Credit Commission, only about 2,000 received an "A" rating. The credit information of "A" rated enterprises will be included in the corporate credit information system and banking credit evaluation system of Shanghai city.

Mr. Zhenggang Wang, CEO of China 3C Group, commented, "We are very happy to receive an "A" rating from the Shanghai Contract Credit Commission. This is the result of our strict credit control and it also demonstrates our corporate credibility in Shanghai city. The "A" rating provides a solid credit basis for the future development of Shanghai Joy & Harmony. We intend to further strengthen the internal corporate governance and risk controls of China 3C Group's other major operating subsidiaries."

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Net sales for the third quarter of 2009 decreased 44.4% to $44.0 million compared to $79.1 million for the same period of the prior year. Lower sales were a result of various factors, including a general slowdown in the retail markets, weaker demand for consumer and business electronics due to weakened global financial conditions, as well as increased competition from telecom service providers who opened their own direct operating stores to sell communication products. The Company's retail business generated approximately 68% of its sales while the wholesale business generated approximately 32% of its sales in the third quarter.

Among the Company's four major operating subsidiaries, the net combined retail and wholesale revenue contribution of each subsidiary was as follows:

     -- WangDa (cell phones) third quarter 2009 revenue decreased 63.8% to
        $9.8 million compared to $27.0 million the prior year period.  Third
        quarter gross profit margin for WangDa was 8.2%.
     -- SanHe (appliances) third quarter 2008 revenue decreased 30.8% to $11.9
        million compared to $17.3 million in the prior year period.  Third
        quarter gross profit margin for SanHe was 12.2%.
     -- Joy & Harmony (consumer electronics) third quarter 2009 revenue
        decreased 41.7% to $10.3 million compared to $18.2 million in the
        prior year period.  Third quarter gross profit margin for Joy &
        Harmony was 1.6%.
     -- YongXin (communications/office electronic equipment) third quarter
        2009 revenue decreased 46.4% to $8.9 million compared to $16.6 million
        in the prior year period.  Third quarter gross profit margin for
        YongXin was 7.5%.

Gross profit for the third quarter of 2009 was $4.0 million compared to $11.8 million in the same period of the prior year. Third quarter 2009 gross margin was 9.1% as compared to 15.0% for the three months ended September 30, 2008. The lower gross profit margin was primarily due to the decreased unit sales prices of consumer and business electronics in the competitive market in China.

Selling, general and administrative expense for the third quarter of 2009 totaled $5.6 million, or approximately 12.8% of net sales, compared to $3.7 million, or approximately 4.7% of net sales, for the same period of the prior year. The increase in operating expenses was primarily due to additional expenses incurred by Jinhua compared to the same period in 2008, increased amortization of intangible assets purchased from Jinhua, as well as from increased cost in direct operating stores and franchise stores.

Loss from operations for the third quarter of 2009 was $1.6 million, or (3.7%) of net sales, compared to income from operations of $8.1 million for the third quarter of 2008, or 10.3% of net sales.

Net loss for the third quarter of 2009 was $1.75 million, or ($0.03) per diluted share, compared to $6.36 million, or $0.12 per diluted share, for the third quarter of 2008. Decreased sales revenue, lower gross margin and higher operating expenses were the critical factors which contributed to the decrease in net income.

The Company's cash position decreased 12.0% to $28.3 million compared to $32.2 million at the end of the 2008 fiscal year. The Company does not currently have any debt.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer, commented, "While we are generally dissatisfied with our third quarter performance, our results were in-line with our expectations and the guidance we provided last quarter. There were multiple events that have the impacted sales and profit performance within our four electronic operating subsidiaries.

Due to the challenging economic environment, more small and medium sized businesses in China were less likely to purchase or upgrade to new office equipment and there has been a slower rollout of new, higher margin consumer electronic products which have impacted sales demand. Additionally, telecom service providers have begun to directly operate their own stores to sell communications products and launch promotions which have negatively impacted our performance.

These preceding events had a negative impact in our business and could continue to be an issue for us in the coming quarters. As a result, we are moving swiftly to exit out of unprofitable locations. We closed 25 store-in- store locations in the third quarter and expect to close at least another 30 in the fourth quarter. We finished the third quarter with 954 store-in-stores and estimate that we'll end the year with approximately 920 store-in-stores.

We are focused on improving our operations and building a business that can allow us to optimize our performance and provide us with better control our destiny. Our Jinhua logistics segment performed well during the third quarter generating $3.0 million in sales and contributing 30% gross profit margin. We believe this business can demonstrate steady future growth and will contribute to the expansion of our distribution networks and lower our transportation costs.

We believe that our direct and franchise store operations will become our most important business in the future. In the third quarter, we opened three direct stores and four franchise "YOSEN" stores. The seven locations are based in Qiandao Hu, Jinhua, Haiyan, Tonglu, Jiande, Longyou and Jiangshan. We currently sell over 300 products in these stores and our product categories include cell phones, laptops, and digital products such as cameras, PDA's and camcorders. These stores were opened in the second half of the third quarter and we are encouraged with our progress thus far. We are pleased to build a concept that can establish a more recognizable brand name for our business, build customer loyalty, provide us with a flexible store format and give us full operational control so we can manage our business more effectively and position our new stores for strong future revenue and profit growth.

We expect our business performance for the 2009 fourth quarter to be on par with that of the third quarter. Fourth quarter revenue is expected to total approximately $40 million, with a very small contribution from our direct and franchise store business, and gross margin of approximately 10%. We will continue to modify our total number of store-in-store units so that they can reach an improved level of performance and profitability. We have a stable balance sheet including no debt and over $28 million in cash. This provides us with a strong foundation to further develop our direct and franchise store business which we believe can become more prominent in the in the coming years. While we expect the remainder of 2009 to be challenging, we remain focused on building a platform for long-term sustainable growth. We have a lot of work to do but believe we have the right plan and managerial team in place to execute on our mission. We look forward to updating you on our developments in the months ahead," concluded Mr. Wang.

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Forward-looking Statements

Certain statements set forth in this press release constitute "Forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward- looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

                         CHINA 3C GROUP AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
       FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 and 2008 (UNAUDITED)

                                                   2009              2008
    Net sales                                  $43,955,024       $79,056,756
    Cost of sales                               39,942,479        67,210,574
    Gross profit                                 4,012,545        11,846,182
    Selling, general and administrative
     expenses                                    5,620,799         3,730,967
    Income from operations                      (1,608,254)        8,115,215

    Other (income) expense
    Interest income                                (28,884)          (38,014)
    Other income                                      (438)         (378,976)
    Other expense                                   27,790                --
    Total other (income) expense                    (1,532)         (416,990)

    Income before income taxes                  (1,606,722)        8,532,205
    Provision for income taxes                     143,414         2,168,638
    Net income                                  (1,750,136)        6,363,567
    Foreign currency translation
     adjustments                                    35,907           230,251
    Comprehensive income                       $(1,714,229)       $6,593,818

    Net income available to common
     shareholders per share:
    Basic                                           $(0.03)            $0.12
    Diluted                                         $(0.03)            $0.12

    Weighted average shares outstanding:
    Basic and Diluted                           53,931,327        52,673,938
    Basic and Diluted                           53,931,327        53,073,938



                    CHINA 3C GROUP AND SUBSIDIARIES
       CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
         FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 and 2008
                              (UNAUDITED)

                                              2009          2008
    Net sales                           $172,492,520  $225,725,603
    Cost of sales                        152,400,772   190,457,324
    Gross profit                          20,091,748    35,268,279
    Selling, general and administrative
     expenses                             15,856,294    10,043,055
    Income from operations                 4,235,454    25,225,224

    Other (income) expense
    Interest income                          (82,955)     (103,581)
    Gain on disposal                              --        (2,161)
    Other income                            (163,225)     (690,905)
    Other expense                            143,642            --
    Total other (income) expense            (102,538)     (796,647)

    Income before income taxes             4,337,992    26,021,871
    Provision for income taxes             1,734,472     6,333,265
    Net income                             2,603,520    19,688,606
    Foreign currency translation
     adjustments                             (92,744)    3,052,891
    Comprehensive income                  $2,510,776   $22,741,497

    Net income available to common
     shareholders per share:
    Basic                                      $0.05         $0.37
    Diluted                                    $0.05         $0.37


    Weighted average shares
     outstanding:
    Basic and Diluted                     53,374,016    52,673,938
    Basic and Diluted                     53,374,016    53,073,938




                           CHINA 3C GROUP AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS

                                              September 30,      December 31,
                                                   2009              2008
                                                (Unaudited)        (Audited)
    ASSETS

    Current assets:
       Cash and cash equivalents                $28,303,125       $32,157,831
       Accounts receivable, net                  22,530,164        23,724,587
       Inventories                                8,229,254         8,971,352
       Advances to suppliers                      2,340,003         2,491,518
       Prepaid expenses and other current
        assets                                      229,043            87,773
           Total current assets                  61,631,589        67,433,061
       Property, plant and equipment, net           302,760            64,100
       Goodwill                                  20,820,287        20,348,278
       Deposit for acquisition of subsidiary             --         7,318,501
       Refundable deposits                           17,351            32,076
       Intangible asset                          14,908,204                --
           Total assets                         $97,680,191       $95,196,016

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
       Accounts payable and accrued
        expenses                                 $6,492,727        $5,417,327
       Income tax payable                           878,396         2,140,624
       Amount due to shareholders                        59                --
           Total liabilities                     $7,371,182        $7,557,951

    Stockholders' equity
       Common stock, $0.001 par value,
        100,000,000 million shares
        authorized, 53,931,327 and
        52,673,938 issued and outstanding
        as of September 30, 2009 and
        December 31, 2008, respectively              53,931            52,674
       Additional paid-in capital                19,626,687        19,465,776
       Subscription receivable                      (50,000)          (50,000)
       Statutory reserve                         11,109,379        11,109,379
       Other comprehensive income                 5,178,360         5,272,104
       Retained earnings                         54,390,652        51,788,132
           Total stockholders' equity            90,309,009        87,638,065
           Total liabilities and
            stockholders' equity                $97,680,191       $95,196,016



                         CHINA 3C GROUP AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
        FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 and 2008 (UNAUDITED)

                                                  2009               2008
    CASH FLOW FROM OPERATING ACTIVITIES
    Net income                                 $2,603,520        $13,325,040
    Adjustments to reconcile net income to
     net cash provided by (used in) operating
     activities:
       Depreciation                               583,848             20,069
       Amortization of intangible assets          345,050                 --
       Gain on asset disposition                       --             (2,161)
       Provision for bad debts                         --             17,445
       Stock based compensation                   162,168            226,293
    (Increase) / decrease in assets:
       Accounts receivable                      1,174,392        (11,039,822)
       Other receivable                           (41,839)                --
       Inventories                                734,375         (6,265,805)
       Prepaid expenses and other current
        assets                                    (99,417)             9,291
       Refundable deposits                         14,684             (4,078)
       Advance to suppliers                       149,398             94,151
    (Increase) / decrease in current
     liabilities:
       Accounts payable and accrued
        expenses                                1,136,874          2,101,789
       Income tax payable                      (1,259,830)          (255,625)
          Net cash provided by (used in)
           operating activities                 5,503,223         (1,773,413)

    CASH FLOW FROM INVESTING ACTIVITIES
       Purchase of property and equipment        (798,973)           (10,650)
       Proceeds from asset sales                       --              2,447
       Payment for acquisition of
        subsidiary - net of cash acquired      (7,784,494)                --
          Net cash used in investing
           activities                          (8,583,467)            (8,203)

    CASH FLOW FROM FINANCING ACTIVITIES
       Due to shareholders                             59                 --
          Net cash provided by financing
           activities                                  59                 --

    Effect of exchange rate changes on
     cash and cash equivalents                   (774,521)         2,822,640

    Net increase (decrease) in cash            (3,854,706)         1,041,024
    Cash, beginning of period                  32,157,831         24,952,614
    Cash, end of period                       $28,303,125        $25,993,638

    Supplemental disclosure of cash flow
     information:
       Interest paid                                  $--                $--
       Income taxes paid                       $1,284,548         $4,420,252

    Non cash transactions relating to
     acquisition
    Purchased Goodwill                           $472,009                $--
    Fair value of assets purchased less
     cash acquired                            $16,779,317                $--
    Purchased intangible assets               $15,182,197                $--
    Net cash acquired in acquisition           $2,404,519                $--

As previously disclosed on December 29, 2008, the transaction was structured as an acquisition through the Company's subsidiaries, Zhejiang Yong Xin Digital Technology Co., Ltd. and Yiwu Yong Xin Communication Ltd., for a cash consideration of RMB 120 million (approximately US$17.4 million). For the year ended December 31, 2008, Jinhua had revenue of $10.5 million, net income of $1.9 million and gross margin of 34.9%.

Jinhua is a well-known transportation logistics company in Eastern China and has been a long time transportation provider for China 3C. Jinhua has been in operation since 2001 and employs approximately 350 people. Jinhua has approximately 280 customers and operates a fleet of more than 70 trucks and transports freight, including electronics, machinery and equipment, metal products, chemical materials, garments and handcrafted goods. Its transportation services cover more than 20 cities in Eastern China, including many of the most developed cities in the Eastern China region in which China 3C operates, such as Shanghai, Hangzhou and Nanjing. Mr. Hongfei Guo, CEO of Jinhua, will continue to manage the business following the closing of this acquisition.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer of China 3C, commented, "We are pleased to complete our acquisition of Jinhua and expand our logistical capabilities. In addition to serving as a transportation provider to our existing wholesale and retail store-in-store operations, we believe this logistics company will allow us to more quickly expand into our newly established direct store and franchise store businesses.

We have combined Jinhua's transportation network with our distribution network, which we believe will result in enhanced service and operating efficiency as we expand our operations into new geographic areas in China. Jinhua's gross margin is significantly higher than our other business segments, and we believe that Jinhua can contribute at least $10 million in revenue and $2 million in net income to our business annually."

Mr. Hongfei Guo, CEO of Jinhua, commented, "We are very proud to join China 3C Group and contribute to their operating strategy. At the same time, we believe that China 3C can provide us with greater financial strength, and enhance our growth in new and existing markets."

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Mr. Zhang has over ten years of experience in financial accounting and reporting. Since 2006, he has served as Chief Accounting Officer with Zhejiang Yong Xin Digital Technology Company Limited, a subsidiary of China 3C where he was responsible for the coordination of audits and proper filing of the Company's quarterly and annual reports. He also played a role in the oversight of the accounting department to ensure the proper maintenance of all accounting systems and functions. From 1999-2006, he served as Deputy Chief of Accounting with Guangdong Xidea Technology Group, a large-scale diversified manufacturer and investment company. Prior to this position, he was Deputy Chief of Accounting with Guangdong Shunde Hongji Group, a furniture manufacturer with more than 200 employees. Mr. Zhang holds a Bachelor's Degree in Accounting from Renmin University of China.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer of China 3C, commented, "I would like to thank Mr. Huang for his contribution to the Company, and wish him well in his future endeavors. Jian has a very strong background in accounting and a solid track record at the Company. I am confident that Jian's financial experience and capabilities will facilitate a smooth transition and I look forward to working more closely with him to further enhance the Company's performance."

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Listeners may access the call by dialing 1-913-312-0939. A replay of the call will be available until June 26, 2009 by dialing #1-719-457-0820, access code: 4685010.

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Net sales for the first quarter of 2009 increased 13.6% to $77.4 million compared to $68.2 million for the same period of the prior year. This 13.6% sales increase for the first quarter was a result of an increase in sales from three of the Company's major operating subsidiaries. The Company also benefitted from lower sales in the prior year period due to weather-related issues which created a backlog in the company's distribution channels resulting in lower sales for the first quarter of 2008. The Company's retail business generated approximately 68.5% of sales while the wholesale business generated approximately 31.5% of sales in the first quarter.

Among the Company's four major operating subsidiaries, the net combined retail and wholesale revenue contribution of each subsidiary was as follows:

-- WangDa (cell phones) first quarter 2009 revenue increased over 18.2% to $25.7 million compared to the prior year period. First quarter gross profit margin for WangDa was 11.5%.

-- Joy & Harmony (consumer electronics) first quarter 2009 revenue increased over 17.8% to $19.3 million compared to the prior year period. First quarter gross profit margin for Joy & Harmony was 11.2%.

-- SanHe (appliances) first quarter 2008 revenue was roughly flat at $16.6 million compared to the prior year period. First quarter gross profit margin for SanHe was 19.6%.

-- YongXin (communications/office electronic equipment) first quarter 2009 revenue increased 20.5% to $15.8 million compared to the prior year period. First quarter gross profit margin for YongXin was 10.7%.

Gross profit for the first quarter of 2009 was $10.1 million compared to $10.5 million in the same period of the prior year. First quarter 2009 gross margin was 13.0% compared to 15.5% for the same period of the prior year. The lower gross margin was due to lower unit product sales for many electronic products due to the highly competitive environment while the Company's consumer product purchases from suppliers remained flat.

Selling, general and administrative expense for the first quarter of 2009 totaled $5.5 million, or approximately 7.1% of net sales, compared to $3.0 million, or approximately 4.4% of net sales, for the same period of the prior year. The increase was primarily due to an increase in base salary for all staff, an increase in marketing expenses and additional expenses incurred to upgrade the sales counters in retail stores to enhance the corporate image. The increase was also attributable to higher management fees as a percentage of sales that were charged by certain department store chains.

Income from operations for the first quarter of 2009 was $4.6 million, or 5.9% of net sales, compared to income from operations of $7.6 million for the first quarter of 2008, or 11.1% of net sales.

Net income was $3.4 million, or $0.07 per diluted share, for the first quarter of 2009, compared to $5.8 million, or $0.11 per diluted share, for the first quarter of 2008.

The Company's cash position decreased 11% to $28.7 million compared to $32.2 million at the end of December 31, 2008. The cash decrease was largely due to the $7.3 million payment for the Jinhua Baofa acquisition made in the first quarter. The Company does not currently have any debt.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer, commented, "The economic downturn has resulted in a more competitive environment within our store-in-store business in the first quarter of 2009, which resulted in lower average unit prices on many of our consumer products as well as higher management fees charged by several of our department store chain customers. The competitive pressures associated with a challenging market environment are a natural trend that we have been anticipating for some time and we are pleased with our diversification efforts since the start of the year. We added the Jinhua Baofa logistics company to our business which facilitated our entry into the franchise store business and allows us to better control our margins and profitability. We remain optimistic that the competitive pressures in our store-in-store business will ease as the economy rebounds and with our strong balance sheet, which includes no debt, healthy cash balance and positive operating cash flow, we believe our company is well positioned to expand our market position. In the first quarter, we made investments in many of our store locations by expanding our marketing efforts, improving employee compensation, and upgrading store designs. We are hopeful these efforts can improve productivity and yield better profits. Ensuring that our store-in-stores maintain the right level of revenue and profitability standards is of the highest priority. As part of this effort, we closed 25 stores in the first quarter and now have 990 store-in-store locations. We will consider additional reductions to our store count in the near future if certain stores do not meet our performance standards.''

''Our strong balance sheet not only allows us to support our store-in-store locations, it provides us with the flexibility to pursue new business opportunities that can further enhance our position in China's consumer electronic marketplace. We continue to make good progress with our franchise plan and are on plan to open up 15 direct stores and 15 franchise stores in the second half of 2009 and plan to open 100 additional franchise stores in 2010. We have identified several potential store locations and are in the process of converting them into more comprehensive stores that will carry branded consumer electronic products and product lines supplied through our wholesale unit. The locations of these potential stores are in cities with minimal large-format electronic retail competition, which we believe will allow us the opportunity to maximize pricing and margin opportunities in such locations.''

''We believe the build out of a franchise model will provide us with many unique opportunities compared to our existing model including better brand visibility, store format flexibility and greater operational control. We expect to close our acquisition of Jinhua Baofa in the near future and we intend to be able to utilize their expansive logistic network to meet the needs of our future franchisees and direct flagship stores.''

''We continue to focus on opportunities that can enhance our store-in-store performance including the ongoing introduction of new, higher margin products and negotiating new leasing terms for rent. We expect this segment to serve as the primary contributor to both our revenue and profit for the near future. As our franchise plan continues to roll out, we believe that we will see additional upside to our revenue and profit performance as we increase the number of direct stores and franchise stores. We look forward to updating you on our progress as we move through 2009 and we believe that our strong wholesale position and retail store-in-stores and franchise stores provide us with the right platform to increase our market opportunity in China's consumer electronics market,'' concluded Mr. Wang.

The Company intends to conduct a conference call to further discuss its business operations including its franchise store plans in the coming 2-3 weeks.

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Forward-looking Statements

Certain statements set forth in this press release constitute "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward-looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

(Financial tables to follow)

CHINA 3C GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2009 and 2008 (UNAUDITED)

2009 2008
Net sales $ 77,411,560 $ 68,153,455
Cost of sales 67,352,831 57,607,075
Gross profit 10,058,729 10,546,380
Selling, general and administrative
expenses 5,486,276 2,986,044
Income from operations 4,572,453 7,560,336
Other (income) expense
Interest income (29,108) (36,095)
Other income (148,127) --
Other expense 111,222 12,813
Total other (income) expense (66,013) (23,282)
Income before income taxes 4,638,466 7,583,618
Provision for income taxes 1,198,891 1,810,573
Net income 3,439,575 5,773,045
Foreign currency translation
adjustments (136,574) 1,600,050
Comprehensive income $ 3,303,001 $ 7,373,095

Net income available to common
shareholders per share:
Basic $ 0.07 $ 0.11
Diluted $ 0.07 $ 0.11

Weighted average shares outstanding:
Basic 52,834,055 52,673,938
Diluted 52,834,055 53,073,938

CHINA 3C GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

March 31, December 31,
2009 2008
(Unaudited) (Audited)
ASSETS

Current assets:
Cash and cash equivalents $ 28,667,084 $ 32,157,831
Accounts receivable, net 23,469,578 23,724,587
Inventories 11,339,434 8,971,352
Advances to suppliers 2,337,268 2,491,518
Prepaid expenses and other current
assets 45,210 87,773
Total current assets 65,858,574 67,433,061
Property, plant and equipment, net 60,732 64,100
Goodwill 20,348,278 20,348,278
Deposit for acquisition of subsidiary 14,607,923 7,318,501
Refundable deposits 29,812 32,076
Total assets $ 100,905,319 $ 95,196,016

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued expenses $ 8,766,553 $ 5,417,327
Income tax payable 1,197,700 2,140,624
Total liabilities 9,964,253 7,557,951

Stockholders' equity
Common stock, $0.001 par value,
100,000,000 million shares
authorized, 52,834,055 and 52,673,938
issued and outstanding as of
March 31, 2009 and December 31, 2008,
respectively 52,834 52,674
Additional paid-in capital 19,465,616 19,465,776
Subscription receivable (50,000) (50,000)
Statutory reserve 11,109,379 11,109,379
Other comprehensive income 5,135,530 5,272,104
Retained earnings 55,227,707 51,788,132
Total stockholders' equity 90,941,066 87,638,065
Total liabilities and stockholders'
equity $ 100,905,319 $ 95,196,016

CHINA 3C GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 and 2008 (UNAUDITED)

2009 2008
CASH FLOW FROM OPERATING ACTIVITIES
Net income $ 3,439,575 $ 5,773,045
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 6,648 9,946
Gain on asset disposition -- (2,161)
Provision for bad debts -- 13,498
Stock based compensation -- 117,557
(Increase) / decrease in assets:
Accounts receivable 208,083 (6,740,422)
Other receivable 25,736 --
Inventories (2,388,278) (4,251,886)
Prepaid expenses and other current
assets 16,712 587
Refundable deposits 2,186 (5,927)
Advance to suppliers 149,449 926,777
Increase / (decrease) in current
liabilities:
Accounts payable and accrued expenses 3,363,214 1,869,349
Income tax payable (939,604) (837,248)
Net cash provided by operating
activities 3,883,721 (3,126,885)

CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property and equipment (2,763) (6,581)
Proceeds from asset sales -- 2,447
Deposit for acquisition of subsidiary (7,289,422) --
Net cash used in investing activities (7,292,185) (4,134)

Effect of exchange rate changes on
cash and cash equivalents (82,283) 1,600,050

Net increase (decrease) in cash (3,490,747) (1,530,969)
Cash, beginning of period 32,157,831 24,952,614
Cash, end of period 28,667,084 23,421,645

Supplemental disclosure of cash flow
information:
Interest paid $ -- $ --
Income taxes paid $ 2,141,815 $ 2,647,821

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Forward-looking Statements

Certain statements set forth in this press release constitute "Forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward- looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.... .

Forward-looking Statements

Certain statements set forth in this press release constitute "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward-looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

HANGZHOU, China, March 25 /PRNewswire-Asia-FirstCall/ -- China 3C Group (''China 3C'' or the ''Company'') (OTC Bulletin Board: CHCG - News), a retailer and wholesale distributor of consumer and business products in China, today announced financial results for the fourth quarter and full year of 2008.

Results for the three months ended December 31, 2008

Net sales for the fourth quarter of 2008 increased 22.9% to $84.9 million compared to $69.1 million for the same period of the prior year. This 22.9% sales increase for the fourth quarter was primarily attributable to the rollout of new consumer electronic products and increased marketing initiatives within the Company's store-in-store locations. The Company's retail business generated approximately 68% of sales while the wholesale business generated approximately 32% of sales in the fourth quarter.

Among the Company's four major operating subsidiaries, the net combined retail and wholesale revenue contribution of each subsidiary was as follows:

-- WangDa (cell phones) fourth quarter 2008 revenue increased over 40.5% to $28.2 million compared to the prior year period. Fourth quarter gross profit margin for WangDa was 14.4%.

-- Joy & Harmony (consumer electronics) fourth quarter 2008 revenue increased over 27.0% to $22.6 million compared to the prior year period. Fourth quarter gross profit margin for Joy & Harmony was 14.5%.

-- SanHe (appliances) fourth quarter 2008 revenue decreased 4.4% to $17.8 million compared to the prior year period. Fourth quarter gross profit margin for SanHe was 17.8%.

-- YongXin (communications/office electronic equipment) fourth quarter 2008 revenue increased 29.4% to $16.4 million compared to the prior year period. Fourth quarter gross profit margin for YongXin was 17.6%.

Gross profit for the fourth quarter of 2008 was $13.4 million compared to $11.2 million in the same period of the prior year. Fourth quarter 2008 gross margin was 15.7% compared to 16.2% for the same period of the prior year and 15.0% in the third quarter of 2008. This gross margin rate was within the Company's previously announced 14.5%-16% forecast guidance range. The year over year decrease in gross margin was a result of a slightly more promotional sales environment on certain products within the Company's store-in-store locations.

General and administrative expense for the fourth quarter of 2008 totaled $4.1 million, or approximately 4.8% of net sales, compared to $4.0 million, or approximately 5.8% of net sales, for the same period of the prior year. The G&A decrease on a percentage basis was a result of strict cost controls implemented by the Company.

Income from operations for the fourth quarter of 2008 was $9.3 million, or 10.9% of net sales, compared to income from operations of $7.2 million for the fourth quarter of 2007, or 10.4% of net sales.

The Company's tax rate for the 2008 fourth quarter decreased to 24.2% from 38.9% in the prior year period. In the future, the Company expects a tax rate of approximately 25%.

Fourth quarter net income was $7.1 million, or $0.14 per diluted share, for the fourth quarter of 2008 compared to $4.4 million, or $0.08 per diluted share, for the fourth quarter of 2007.

The Company's cash position increased 29% to $32.2 million compared to $25.0 million at the end of December 31, 2007. The Company does not currently have any debt. The increase in accounts receivable in 2008 was due to the extension of payment terms from all the Company's retail partners from 15 days to 30 days. The collection of debt is based on the terms of legal binding documents. The Company has not changed its policy on reserving for bad debt and has not found any abnormal increases in bad debt.

Results for the fiscal year ended December 31, 2008

Net sales for 2008 increased 13% to $310.6 million, compared to $276.0 million for 2007. Gross margin decreased 220 basis points to 15.7% compared to 17.9% in 2007. General and administrative expenses for 2008 totaled $14.1 million, or approximately 4.5% of sales, compared to $13.6 million, or 4.9% of sales, in 2007. Income from operations for 2008 was $34.5 million, as compared to income from operations of $35.8 million in the prior year. Net income was $26.8 million for 2008, compared to $22.9 million in 2007. Diluted earnings per share increased to $0.51 for 2008 compared to $0.44 in 2007.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer, commented, "We are very pleased to report solid full year and fourth quarter 2008 financial results, particularly as our fourth quarter results exceeded our preliminary revenue, net income and diluted EPS results announced in mid-January 2009. We believe that China 3C Group continues to benefit uniquely from its size and scale, strong customer and supplier relationships, its product breadth and selection and its pricing, all of which, in our view, have allowed us to expand our market position even during these challenging economic times.

''At the end of the fourth quarter, we operated 1,014 store-in-stores located in 277 branded retail store locations. Our sizeable presence allows us to negotiate better terms and prices from our suppliers and our product breadth helps us to more broadly penetrate retail locations and meet customer demand. We enjoyed a monthly per-store revenue increase in 2008 which we attribute to our introduction of new branded products and our customer-oriented quality service programs. The retail stores that we operate are located in some of China's best-known consumer electronic retail chains. These chains include Gome, where we operate 93 store-in-store locations, Suning (92 store-in-stores), Yongle (88 store-in-stores), Lianhua Holdings (87 store-in-stores), Trust-Mart (65 store-in-stores), Tesco (30 store-in-stores), and Carrefour (25 store-in-stores), among others.

''We continue to see steady improvement to our balance sheet. We finished the year with over $32 million in cash. This was an increase from both the prior year and prior quarter and also takes into account a partial cash payment of approximately $7.3 million for the acquisition of Jinhua Boafa announced in late December 2008. We are pleased with the efficiencies of our operations, which are best demonstrated by our inventory turns, which turned 24 times in 2008. In addition, we have no debt, were cash flow positive from operations and ended 2008 with a book value per share of $1.66.

''We believe that 2009 will be another solid year for China 3C Group. Consumer demand for our products remains steady and we continue to focus on expanding profits and minimizing operating expenses within our store-in-store locations. We also expect to see growth coming from our direct and franchise stores we expect to open this year. With the establishment of our franchise business, we believe that we have a great opportunity to increase our sales and profitability, create additional operating leverage and improve our brand visibility. We look forward to further establishing China 3C Group as a leading retailer and distributor of consumer electronic products in the eastern China region,'' concluded Wang.

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The Company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The Company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.com .

Forward-looking Statements

Certain statements set forth in this press release constitute "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward-looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

    For more information, please contact:

     Jason Yuan, Vice President
     China 3C Group
     Email: ir@china3cgroup.com

     Bill Zima
     ICR, Inc.
     Tel: +1-203-682-8200


                  (Financial tables on the following pages)



                       CHINA 3C GROUP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
               FOR YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006

                                   2008              2007            2006

    Net sales                $  310,644,661    $  276,026,673   $ 148,218,848
    Cost of sales            $  262,002,877    $  226,656,242   $ 125,411,758
    Gross profit                 48,641,784        49,370,431      22,807,090
    Selling, general and
     administrative expenses     14,132,473        13,614,500       5,544,924
    Income from operations       34,509,311        35,755,931      17,262,166

    Other Income (Expense)
    Interest income                 146,344            88,413          31,293
    Other income                  1,149,537                --              --
    Other expense                  (359,682)          (74,215)       (100,646)
    Interest expense                     --                --          (7,565)
    Total Other Income
    (Expense)                       936,199            14,198         (76,918)
    Income before income
     taxes                       35,445,510        35,770,129      17,185,248
    Provision for income
     taxes                        8,611,298        12,850,429       5,908,122
    Net income               $   26,834,212    $   22,919,700    $ 11,277,126

    Net income per share:
    Basic & diluted          $         0.51    $         0.44    $       0.24

    Weighted average
     number of shares
     outstanding:
    Basic & diluted              52,696,327        52,671,438      46,179,507



                         CHINA 3C GROUP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                              December 31,       December 31,
                                                  2008               2007
                               ASSETS
    Current Assets
     Cash and cash equivalents             $  32,157,831       $  24,952,614
     Accounts receivable, net                 23,724,587           8,077,533
     Inventories                              12,716,631           6,725,371
     Advance to supplier                       2,491,518           2,572,285
     Prepaid expenses                             87,773             382,769
       Total Current Assets                   71,178,340          42,710,572

    Property & equipment, net                     64,100              89,414
    Goodwill                                  20,348,278          20,348,278
    Deposit for acquisition
     of subsidiary                             7,318,501                  --
    Refundable deposits                           32,076              48,541
       Total Assets                        $  98,941,295      $   63,196,805

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities
      Accounts payable and accrued
       expenses                            $   9,162,606      $    3,108,235
      Income tax payable                       2,140,624           2,684,487
       Total Current Liabilities              11,303,230           5,792,722

    Stockholders' Equity

    Common stock, $.001 par value,
     100,000,000 shares authorized,
     52,696,327 and 52,673,938 issued
     and outstanding as of December 31,
     2008 and December 31,
     2007, respectively                           52,696              52,674
      Additional paid in capital              19,465,754          19,465,776
      Subscription receivable                    (50,000)            (50,000)
      Statutory reserve                       11,109,379           7,234,295
      Other comprehensive income               5,272,104           1,872,334
      Retained earnings                       51,788,132          28,829,004
         Total Stockholders' Equity           87,638,065          57,404,083
         Total Liabilities and
          Stockholders' Equity              $ 98,941,295        $ 63,196,805



                       CHINA 3C GROUP AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006

                                           2008          2007          2006
    CASH FLOWS FROM OPERATING
    ACTIVITIES

    Net Income                        $ 26,834,212  $ 22,919,700  $ 11,277,126
    Adjustments to reconcile net
     income to net cash provided
     by operating activities:
    Depreciation                            36,116        40,714        20,191
    Gain on asset disposition               (2,161)           --          (936)
    Provision for bad debts                261,515         9,021        82,686
    Stock based compensation               336,668     2,113,270            --
    Amortization of deferred
     consulting expense                         --            --       387,945
    Effect of changes in:
    Accounts receivables               (15,908,569)      (73,483)   (2,375,209)
    Inventories                         (5,991,260)   (3,945,865)     (487,593)
    Prepaid expense and other
     current asset                         (41,672)     (322,710)       85,216
    Advance to supplier                     80,767      (356,444)     (848,848)
    Refundable Deposits                     16,465       (41,974)       (5,929)
    Accounts payable and accrued
     expenses                            6,054,371     1,143,572     1,356,272
    Income tax payable                    (543,863)       87,970     1,477,695


    Net cash provided by operating
     activities                         11,132,589    21,573,771    10,968,616

    CASH FLOWS FROM INVESTING
    ACTIVITIES
    Purchase of property & equipment       (11,088)     (64,325)       (30,591)
    Proceeds from asset sales                2,447           --          1,508
    Deposits for acquisition of
     subsidiary                         (7,318,501)          --             --
    Net cash used in Investing
     activities                         (7,327,142)     (64,325)       (29,083)

    CASH FLOWS FROM FINANCING
    ACTIVITIES
    Payments of acquisition notes -
     net of cash acquired                       --   (4,500,000)    (6,550,157)
    Payments of notes - other                   --           --         (7,769)
    Net cash used in financing
     activities                                 --   (4,500,000)    (6,557,926)

    Effect of exchange rate changes
     on cash and cash equivalents        3,399,770    1,444,718        167,621

    Net change in cash and cash
     equivalents                         7,205,217   18,454,164      4,549,228
    Cash and cash equivalents,
     beginning balance                  24,952,614    6,498,450      1,949,222

    Cash and cash equivalents,
     ending balance                   $ 32,157,831 $ 24,952,614    $ 6,498,450

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.com .

Forward-looking Statements

Certain statements set forth in this press release constitute "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward-looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward-looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

Based in Jinhua City, China, a city of over 4.6 million in the Zhejiang province, Jinhua is a club for car owners. The club, comprised of approximately 300,000 members, organizes a variety of automotive events regularly and provides for communication and social networking opportunities for its members. China 3C sells about 15 models of GPS products, 10 models of Kodak digital cameras and 10 models of TECSUN radios. This agreement will allow Jinhua's members to purchase products from China 3C at a discounted membership price. Jinhua will advertise this information to club members through its club newsletter, magazine and flyers. This one-year agreement signed between both parties will benefit China 3C subsidiaries, Hangzhou Wang Da Electronics Company Limited and Yiwu Yong Xin Telecommunication Company Limited.

Mr. Zhenggang Wang, CEO of China 3C, said, "We are excited about our agreement with the Jinhua Auto Sports Association. We believe that Jinhua's club members and their families have strong consumer spending power, which can benefit some of our products serving the automotive market. This sales channel is a new model for our business that can allow us to expand sales outside of our retail stores and increase our brand value. The cost structure of this initiative provides us with higher gross margin opportunities compared to our retail business even when incorporating the discounted prices for our products offered exclusively to this automotive club. We will continue to evaluate other margin enhancing opportunities in the coming months.''

Mr. Jiqing Chen, President of the Jinhua Automobile Sports Association said, ''This is our first business cooperation agreement with any merchandise provider. We chose China 3C because of its strong product portfolio, quality products and excellent service. The cooperation agreement will allow our members to purchase well known, branded auto-related products at affordable prices."

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.com .

Forward-looking Statements: Certain statements set forth in this press release constitute "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward-looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.

    For more information, please contact:

     Jason Yuan, Vice President
     China 3C Group
     Email: ir@china3cgroup.com

     Bill Zima
     ICR, Inc.
     Tel: +1-203-682-8200

Under the terms of the agreement, one salesperson in each of China 3C's store-in-store locations will wear Shenzhen Vogue's promotional shirt for a period of one year to advertise Shenzhen Vogue's products. China 3C currently has over 1,000 store-in-store locations.

Shenzhen Vogue Industries Co., Ltd, founded in August 1997, is a high-tech company that integrates R&D, manufacturing, marketing and after-sale services. It is one of the largest and most well-known GPS manufacturers in Southern China. Shenzhen Vogue recorded approximately USD$150 million in annual sales in 2008.

Mr. Zhenggang Wang, CEO of China 3C, said, "We are pleased to announce this marketing partnership with Shenzhen Vogue, one of our recently announced suppliers. The marketing partnership is expected to provide China 3C with additional revenue and the net margin associated with this advertising agreement significantly exceeds the net margin in our core wholesale and retail businesses.

''China 3C has a large number of suppliers who are in need of marketing services and we plan to continue to develop unique advertising opportunities with our branded suppliers to optimize our profitability. We are one of the largest store-in-store consumer electronics retailers in Eastern China with an extensive customer base. Marketing through China 3C's retail locations are an efficient and cost-effective way for our suppliers to advertise directly to our large base of customers. Our cost to manage this service is minimal and we expect it to contribute to our profit performance this year.''

Guandong Chen, CEO of Shenzhen Vogue said, "We are very glad to enter into this marketing agreement with China 3C. China 3C has over one thousand retail locations in Eastern China with a high customer flow at each retail location. We strongly believe that our marketing partnership with China 3C can lead to increased product sales and brand visibility."

About China 3C Group

China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The company's goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.com .

Forward-looking Statements

Certain statements set forth in this press release constitute "Forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward- looking statements, including, without limitation, those under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.