ChinaGrowth South Acquisition Corporation Announces Memorandum of Understanding

BEIJING, July 22 /Xinhua-PRNewswire/ -- ChinaGrowth South Acquisition
Corporation (the "Company") (OTC Bulletin Board: CGSUF) announced today that
it has signed a memorandum of understanding relating to a business
combination.
The target is a company with its principal business operations in the People's
Republic of China. Pursuant to the Company's Amended and Restated Memorandum
and Articles of Association, the execution of the memorandum of understanding
affords the Company a six-month extension for completion of a business
combination, until January 29, 2009.
The consummation of the business combination is subject to, among other
things, execution of a definitive agreement and required stockholder approval.
There can be no assurance that a business combination will be consummated.
About ChinaGrowth South Acquisition Corporation
ChinaGrowth South Acquisition Corporation is a Cayman Islands company that
completed its initial public offering on January 23, 2007. CGSAC was formed
for the purpose of acquiring, through a stock exchange, asset acquisition or
other similar business combination, or control, through contractual
arrangements, an operating business having its primary operations in the
People's Republic of China in any city or province south of the Yangtze River.
However, in the event ChinaGrowth North Acquisition Corporation, an entity
formed by our principals simultaneously with our incorporation, executes a
definitive acquisition agreement, then CGSAC may pursue acquisition
opportunities north of Yangtze River. CGSAC is a foreign private issuer, whose
preliminary proxy materials are not subject to review by the Securities and
Exchange Commission.
Safe Harbor Statement
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term is
defined by the United States Private Securities Litigation Reform Act of 1995.
Any such forward-looking statements contained herein are based on current
expectations, and are subject to a number of risks and uncertainties that may
cause actual results to differ materially from expectations such as material
adverse events affecting the Company or the ability of the Company to satisfy
the conditions to completion of a business combination, and those other risks
and uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
SOURCE ChinaGrowth South Acquisition Corporation

At CGSAC in Beijing: Michael W. Zhang, Chief Financial Officer and Director,
mzhang@chum.com.cn; Or At ICR, Inc. in the US: Brian Prenoveau, CFA or Bill
Zima, +1-203-682-8200