SinoHub Reports Profits on Target after One Time Expenses, Sharply Increased Revenues

SinoHub Reports Profits on Target after One Time Expenses, Sharply Increased
Revenues
Company Benefits from Growth of Electronics Consumption in China

SHENZHEN, China, Aug. 14 /Xinhua-PRNewswire/ -- SinoHub, Inc.
(OTC Bulletin Board: SIHI) announced financial results for second quarter of
2008 and the six months ending June 30, 2008. The second quarter of 2008 was a
transformational quarter for SinoHub. On May 14, 2008 a reverse take over
(RTO)
of Liberty Alliance, Inc., a Delaware C corporation that was a trading shell
on the NASD OTCBB, was completed. As a result of this transaction, the
corporate entity which was SinoHub, Inc. prior to the RTO was subsequently
renamed SinoHub International, Inc. and Liberty Alliance, Inc. was renamed
SinoHub, Inc.
Total revenue increased 117.3% to $13.2 million in Q2 2008 from $6.1
million in Q2 2007 due to continued strong demand for the Company's services.
Total revenue for the six months ended June 30th was $24.8 million, up 120.6%
from the $11.3 million recorded in the year earlier period.
Net income for the second quarter of 2008 was $539,954 versus $964,577
million in the year-earlier period. Non-GAAP results showed Comprehensive
Income (GAAP Net Income plus foreign currency translation gain) of $719,495 in
the second quarter of 2008 versus $1,009,549 in the year earlier period. These
results for Q2 2008 include a one time non-cash expense of $433,500 in the
form of stock payments to consultants to facilitate the RTO transaction and
there were one time cash expenses of roughly $146,000 associated with the RTO.
Excluding these one time non-operational expenses, net income would have been
$1.12 million in the second quarter of 2008, or a 16.1% gain over the year
earlier period. Net income for the six months ended June 30th was $1.63
million compared to $1.66 million in the year earlier period.
Fully diluted earnings were $0.03 per share in Q2 2008 versus $0.05 per
share in Q2 2007 based on an average of 19,191,978 common shares outstanding
and options to purchase 449,767 common shares reserved for issuance under the
Company's incentive stock option plan in the second quarter of 2008 and
18,290,000 shares on a fully diluted basis in the second quarter of 2007.
A leading electronic components supply chain management (SCM) service
provider, SinoHub provides SCM services to electronics manufacturers and
component suppliers in the Peoples' Republic of China. The company's
professional supply chain management platform integrates its proprietary,
world-class online MIS software system (SinoHub SCM), logistics service
centers located in key distribution/manufacturing cities in Hong Kong and
China, and a service team of more than 100 people with extensive knowledge in
electronics.
"The second quarter of 2008 showed accelerated revenue growth and this
bodes well for future financial performance," said Willa Li, CFO of SinoHub,
Inc. "Although we incurred some unusual expenses with our reverse merger we
achieved our targets."
"Now that SinoHub is a public company in the U.S., we have many more
options for funding, and we are receiving even more recognition of the value
of our SCM platform," said Harry Cochran, CEO of SinoHub, Inc. "We believe
that our growth rate will accelerate very significantly in the second half of
2008 based on continued strong demand for our services and greater financial
resources, which will enable us to take advantage of more opportunities. The
on-time opening on July 2nd of our new 26,500 square foot warehouse in Hong
Kong has removed the only other constraint on our growth. Since most of our
manufacturer customers are selling into the Chinese market, we do not
anticipate any negative effect from slowdowns in some of the other world
economies."
About SinoHub
SinoHub, Inc. was founded by veteran entrepreneur Harry Cochran and
electronic component industry veteran Lei Xia to facilitate the electronics
revolution in China by providing world-class services and transparent
information access for all participants in the electronic components supply
chain in China. For more information, please visit our Web site at
http://www.sinohub.com .
Cautionary Statement Regarding Forward-looking Information
The statements contained in this press release that are not historical
facts are forward-looking statements under the federal securities laws. Such
statements include, but are not limited to, the company's accelerated growth
rate in the second half of 2008. Forward-looking statements are not guarantees
of future performance and involve certain risks, uncertainties and assumptions
that are difficult to predict. Actual outcomes and results may differ
materially from what is expressed in, or implied by, such forward-looking
statements. SinoHub undertakes no obligation to update publicly any forward-
looking statements, whether as a result of new information, future events or
otherwise.
For more information, please contact:

SinoHub, Inc.
Nicole Cheung
Tel: +86-755-2601-2481
Email: nicole@sinohub.com

SOURCE SinoHub, Inc.

Nicole Cheung of SinoHub, Inc., +86-755-2601-2481, or nicole@sinohub.com