China 3C Group, Wal-Mart China in supply deal

ZHEJIANG PROVINCE, China China 3C Group, a leading retailer and distributor of consumer and business products in China, has entered into an agreement with Wal-Mart China to sell audio electronic equipment, including radios, CD players and stereo equipment at six Wal-Mart stores in the Zhejiang province beginning in April. Under the agreement, China 3C will have the opportunity to sell its products at other Wal-Mart stores located in Eastern China as well as in other surrounding provinces in China in the future. Including Wal-Mart's six stores in the Zhejiang province, Wal-Mart currently has thirteen stores in Eastern China and eighty-one stores overall in China.

Wang Zheng-gang, China 3C chairman and ceo commented, ''We are thrilled that Wal-Mart is working with China 3C to sell our audio products in their stores. While this agreement is initially expected to have a limited material impact to our business, we believe there is an opportunity to expand our relationship with this retailer in the future to include a broader range of products and increase the total number of stores we have with this partner. Our business is well-suited to work with leading retailers such as Wal-Mart due to our broad product selection, competitive pricing and our ability to operate in a large number of store outlets. Wal- Mart has a strong brand presence and operating capability in China, which we believe can provide China 3C with a very good platform for growth in the Zhejiang province and in other surrounding provinces in the future. We believe this supply agreement further validates the strength of our operating model.''