Global-Tech Appliances Provides First Quarter Update with Triple Digit CCM Growth and Plans to Allocate More Resources to Expand Its Sales in China.

HONG KONG -- Global-Tech Appliances Inc. (NYSE: GAI) today announced that it is in the process of finalizing its financial results for the first quarter of fiscal 2008 ended June 30, 2007, which it plans to report within the next few weeks, but is providing an update pending its completion.

Net sales for the first quarter of fiscal 2008 are expected to increase approximately 15%, compared to the first quarter of fiscal 2007, though the Company expects to report a modest net loss for the quarter. Included in net sales for the first quarter of fiscal 2008 are sales of complementary metal oxide semiconductor (CMOS) camera modules (CCMs), which are expected to double, compared to the prior corresponding fiscal period.

John C.K. Sham, the Company's President and Chief Executive Officer, said: "We are delighted and excited about the significant growth in our CCM business. More importantly, we continue to maintain a solid backlog of CCM orders as China's economy continues to expand and the cellular phone market continues to grow beyond our expectations."

Mr. Sham continued, "Piggybacking on our success and the anticipated growth in our CCM business, we plan to further expand our CCM production capacity and allocate additional resources to augment our focus and presence in expanding our sales in China. Currently, our CCM business caters primarily to the cellular phone marketers in China and we believe that opportunities exist for the Company to further expand its component business in the China market."

Mr. Sham concluded, "We believe that our bases in China and Hong Kong provide us with a unique advantage of being a conduit for overseas technology to penetrate the China market, which should allow us to exploit other business opportunities. Beginning with the second quarter of fiscal 2008, we expect to report improved financial results as we anticipate our CCM business to continue its rapid growth."

Global-Tech Appliances Inc. is a holding company, owning subsidiaries that manufacture and market floor care products and small household appliances. These products are marketed by customers under brand names such as DeLonghi[R], Dirt Devil[R], Electrolux[R], Eureka[R], Pentax[R], and Sunbeam[R]. Its subsidiaries also manufacture, market, sell, and distribute electronic components primarily to companies based in China and other products to the China market.

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.