TCL Selects Comtech Solution to Support Roll-out of Multimedia Handsets

February 23 2007

Comtech Group, Inc. (Nasdaq: COGO), a leading provider of customized design solutions for the technology manufacturing sector in China, today announced that TCL Communication Technology Holdings, Ltd., one of China's leading mobile phone manufacturers, plans to install Comtech's unique Bluetooth solution in its range of multimedia handsets targeted at the Chinese and global markets.

The Comtech solution, based on Bluetooth technology from a leading U.S. integrated circuits provider, Broadcom, is designed to enable advanced multimedia applications, such as audio and stereo music streaming, to be featured in Alcatel and TCL branded handsets.

TCL, which manufactures and markets handsets under two key brands, TCL and Alcatel, decided to use Comtech's technology to capitalize on the projected rise in demand for affordable multimedia handsets in China and globally. TCL plans to introduce a number of new phones to the market during the current quarter and beyond.

Jeffrey Kang, President & Chief Executive Officer of Comtech, said, "Our agreement with TCL is a major step forward in making the vision of sophisticated yet affordable handsets become a reality for consumers. We are delighted that Comtech has been able to play a key role in this latest stage in the evolution of the mobile communications sector.

"TCL is a leading handset vendor in China, having shipped 13 million handsets in 2006, with this number expected to increase to 15-17 million this year. The company has spearheaded the drive towards multimedia phones with Bluetooth functionality, and is the first of our customers to adopt our Bluetooth solution and to bring it to mass production. We estimate this trend in favor of multimedia handsets will create major growth opportunities for us," said Mr. Kang.

Mr. Yi Yuan, Executive Vice President of TCL Mobile Communications, said, "Comtech is an important key supplier partner of TCL. Many thanks to Comtech for its dedicated technical support in the past 12 months, TCL is now ready to meet the market demand of 2007 with a series of Bluetooth enabled handsets. We plan to keep working closely with Comtech to further enhance the multimedia capabilities of our phones."

The Comtech-designed, Bluetooth-based solution is ultimately designed to allow handset users to avail of a range of rich multimedia capabilities, such as the ability to stream high quality audio to wireless stereo headsets, enhancing the overall digital audio and video experience for users. The solution is to be shipped to TCL, starting from this quarter.

About Comtech Group, Inc.:

Comtech Group, Inc. (NASDAQ: COGO) is a leading provider of customized module and subsystem design solutions for the Chinese market. The company believes it acts as a proxy to China's technology industry as it works with virtually all the major ODMs and OEMs China. Comtech utilizes these relationships and combines their IP to create designs that Comtech then sells to electronic manufacturers. These designs allow manufacturers to reduce their time to market for new products and ultimately increase sales. Comtech Group focuses on the mobile handset, telecom equipment and digital media end-markets for their customized design modules while also offering business and engineering services to their large telecom equipment vendor customers. Over the last eleven years, Comtech has grown its customer list to include more than 200 of the largest and most well known manufacturers across the mobile handset, telecom equipment and consumer markets, covering both multinational Chinese subsidiaries and Chinese domestic companies. For more information, visit http://www.comtech.com.cn .

About TCL Communication:

TCL Communication Technology Holdings, Ltd. ("TCL Communication") is engaged in the design, manufacture and marketing of a wide range of mobile handsets for the global market. The Group's handset sold in the PRC, Europe and Latin America are mainly marketed under two key brands -- "TCL," and "Alcatel". TCL Communication is the flagship mobile handset company and a subsidiary of TCL Corporation, a major PRC conglomerate that designs, manufactures and markets a wide range of electronic, telecommunications, information technology and electrical products, and "TCL" was ranked the sixth most valuable brand in PRC in 2005 according to Beijing Famous Brand Evaluation Co. Ltd. For more information, visit http://www.tclmobile.com .

Safe Harbor Statement:

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our proposed discussions related to our business or growth strategy such as growth in mobile handset business and cooperation with TCL, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For a further description of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov.