Dutton Associates Announces Investment Opinion: Qiao Xing Universal Telephone Strong Buy Rating In Update Coverage By Dutton Associates.

EL DORADO HILLS, Calif. -- Dutton Associates updates its coverage of Qiao Xing Universal Telephone (Nasdaq:XING) with a Strong Buy rating and raising its price target to $17.44. The 12-page report by Dutton senior analyst Stanley Ng is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

Qiao Xing Universal Telephone, Inc. is one of China's largest manufacturers and distributors of telecommunications products. The Company manufactures and sells its products under the CECT and COSUN brands, with its product portfolio covering fixed wireless phones, VOIP telephones, advanced mobile phones, PDAs and consumer electronic products such as MP3 players, cash registers and set-top box products. The Company's operating results for the first two quarters of this year were very strong, both in terms of increase in net sales and improvements in margins. This is mainly driven by both subscriber growth and the strong replacement market in which consumers are continuously looking for trendy, high-end mobile handsets with advanced features and functionality selling at affordable prices. With the Company's ability to roll out new models on a regular basis to drive sales and margins, there exists ample opportunities for the Company to grow its current market share of just 3% and to drive earnings. Management's recent bullish guidance on revenue and earnings prospects, and we concur, suggests the stock should be considered as a quality growth stock and its P/E rating should deserve at least half of that for a global leader like Nokia. Based on our new EPS estimates for 2006 and 2007, our revised target price is $17.44 per share, at which the stock is trading at 11.0 times P/E for FY2006 and 8.0 times P/E for FY2007. We reiterate our Strong Buy rating on the stock.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts, primarily CFAs, have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $33,000 from the Company for 4 Research Reports with coverage commencing on 5/18/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.