Global-Tech Appliances' Subsidiary Develops and Prepares to Market ''Automatic Focus'' CMOS Camera Modules.

HONG KONG -- Global-Tech Appliances Inc. (NYSE: GAI) today announced that its wholly owned subsidiary, Global Optics Limited ("Global Optics"), has developed a new CMOS camera module (CCM) incorporating an innovative automatic focus function.

The automatic focus CCM will incorporate a 1/4-inch 1.3-mega-pixel sensor. By adopting the "voice coil motor" technology, in addition to the automatic focus function, Global Optics was able to enhance the CCM's focus range from 10 centimeters to infinity and improve its response time to about 0.7 seconds. This sleek module is a sensor capable of outputting 1,280 x 1,024 active pixels with improved image stabilization for taking still pictures while at the same time supporting full-motion video capture at 30 frames per second for recording picture clips. We believe that these features will make the automatic focus CCM ideal for use in cellular phones, web cameras, personal and laptop computers, and other video imaging devices.

John C.K. Sham, the Company's President and Chief Executive Officer, said: "We started to sell and ship standard CCMs in mid-2005, while continuing our R&D programs to achieve some form of technical advantage. With the development and introduction of the automatic focus CCM, we believe that we will be able to differentiate our products and begin to attract new customers for our CCM business."

Mr. Sham continued, "The initial expressions of interest received for our automatic focus CCM have exceeded our expectations. We expect to begin commercial production and shipment of the 1.3-mega-pixel automatic focus CCMs in late November 2006, followed by the 2.0- and 3.0-mega-pixel versions shortly thereafter."

Mr. Sham concluded, "As the digital imaging industry continues to evolve, we are committed to keeping pace with the latest technology incorporating digital optics and have concurrently redirected some of our R&D effort and emphasis on electronics products so that we can take advantage of business opportunities in other market segments. We continue to believe it's essential for us to reinvent and reposition ourselves so that we can grow our business and enhance long-term shareholder value."

Global-Tech Appliances Inc. is a holding company, owning subsidiaries that manufacture and market a wide range of consumer electrical products worldwide, including floor care products and small household appliances. These products are marketed by customers under brand names such as Black & Decker(R), DeLonghi(R), Dirt Devil(R), Eureka(R), Hamilton Beach(R), Kenwood(R), Pentax(R), Presto(R), Proctor-Silex(R), Sanyo(R), Sharper Image(R), Sunbeam(R), and West Bend(R).

Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "estimates," or variations of such words and similar expressions are intended to identify such forward looking statements. These forward looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company's customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China's trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.