Global-Tech Appliances Announces Plans to Expand Its CCM Production Capacity and Introduces New Product.

HONG KONG -- Global-Tech Appliances Inc. (NYSE: GAI) announced today that its Board of Directors has approved a capital appropriation for its wholly owned subsidiary, Global Optics Limited ("GOL"), in order to expand GOL's complementary metal oxide semiconductor (CMOS) camera module (CCM) manufacturing facility in Dongguan, China. This expansion is expected to enable GOL to increase production capacity to meet anticipated demand and also to maintain high levels of customer service for its existing and new CCM customers.

GOL currently operates eight CCM production lines in a Class 1000 clean room with a maximum monthly production capacity of approximately 900,000 units. Pursuant to the expansion plan, GOL plans to more than double the size of the current clean room and install additional production lines and surface-mount technology (SMT) machines during the months ahead. Upon completion, the Company expects the expansion to increase the total monthly CCM production capacity to approximately 1.6 million units by March 31, 2008.

John C.K. Sham, the Company's President and Chief Executive Officer, said: "We have established approved vendor status with four major customers in China that we expect will order, in aggregate, between 400,000 and 600,000 units of our CCMs per month. One of these customers is a major brand in China and completed an extensive evaluation of our quality control and systems procedures prior to placing their initial order. We also continue to support many regional cellular phone manufacturers in China who have specified our CCMs and programmed their software solutions to operate them."

Mr. Sham continued, "Our solid backlog and forecasts from our existing customers convinced us that it was necessary to invest in additional production capacity to maintain our current CCM business and to have sufficient capacity to support further growth in our customer base. Although we do not expect to utilize our expanded production capacity in its entirety this fiscal year, the expansion is intended to support annualized CCM sales of approximately $50 million at current selling prices by the end of this fiscal year."

Mr. Sham concluded, "In order to sustain our momentum and further grow the CCM business, we also plan to expand our product line and features. We have commenced delivery of recently received orders for our newly developed auto-macro CCM and have started to export our CCMs to cellular phone manufacturers in Japan and Singapore. Additionally, in order to help maintain our competitiveness in the marketplace, we have also added electronic and process engineers in China to expand our product development program to incorporate new features and enhancements in our CCM products."

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], GE[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.