Cogo Group, Inc. Expects to Increase Revenue Potential with New Handset Gaming Solution

Cogo Group, Inc. Expects to Increase Revenue Potential with New Handset Gaming
Solution

SHENZHEN, China, June 1 /PRNewswire-FirstCall/ -- Cogo Group, Inc. (Nasdaq:
COGO), a leading provider of customized design solutions for the technology
manufacturing sector in China, today announced the availability of its module
solution that will participate in the roll-out of a new handset gaming
solution, known as the motion sensor. This solution equips mobile devices
with high-end gaming capabilities similar to shock detection and motion
control features of Nintendo gaming consoles. The application can also allow
for navigating menus and scrolling lists without using touchscreen technology
or other standard user interfaces.

"While the market for this technology in China's handset segment is still in
its infancy, it is expected to become a 'must-have' handset feature in 2010,"
said Jeffrey Kang, CEO of Cogo. "We believe the technology can complement our
strategy to participate in the development of new content within mobile
handsets, which will help to increase our average selling price per device.
We remain optimistic for China's growth in this segment for 2009, and believe
that the development of new features and applications within the handset
market will be a key component for continued growth in Cogo's mobile device
segment in 2010."

Currently, there are a handful of key global vendors shipping high-end
handsets with the motion sensor solution. The Company anticipates recording
small amounts of revenue from this technology to begin in the second half of
2009. Management estimates more than 200 million mobile phones shipped in
China will be equipped with the technology in 2010 and expects the Company to
gradually gain more than 20% of the market share.

About CogoGroup, Inc.:

Cogo Group, Inc. (Nasdaq: COGO) is a leading provider of customized module and
subsystem design solutions in China. The Company believes it acts as a proxy
to China's technology industry as it works with virtually all the major ODMs
and OEMs in China. Cogo leverages these relationships and combines their IP to
create designs that Cogo then sells to electronic manufacturers. These designs
allow manufacturers to reduce their time to market for new products and
ultimately increase sales. Cogo focuses on the mobile handset,
telecommunications equipment, digital media and industrial applications
end-markets for their customized design modules while also offering business
and engineering services to their large telecommunications equipment vendor
customers. Over the last twelve years, Cogo has grown its customer list to
include more than 1,200 manufacturers across the mobile handset,
telecommunications equipment, industrial and consumer markets, covering both
multinational Chinese subsidiaries and Chinese domestic companies.

www.comtech.com.cn/investorinfo.html

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 the mobile handset business, which are subject to
change. Such information is based upon expectations of our management that
were reasonable when made, but may prove to be incorrect. All 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 further descriptions 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, including our
most recent Forms S-1. Copies of filings made with the SEC are available
through the SEC's electronic data gathering analysis retrieval system (EDGAR)
at www.sec.gov.

SOURCE Cogo Group, Inc.

Investor Relations of Cogo Group, Inc., HK, +852 2730 1518, US,
+1-646-291-8998, communications@cogo.com.cn