CORRECTING and REPLACING Universal Travel Group Announces 2008 First Quarter Financial...

CORRECTING and REPLACING Universal Travel Group Announces 2008 First Quarter Financial Results

Revenues and Net Income Substantially Higher than the First
Quarter of 2007
SHENZHEN, China--(Business Wire)--
The tenth graf should read: Earnings per diluted share grew 95%
from $0.020 in the three-month period ended March 31, 2007 to $0.039
in the three-month period ended March 31, 2008 (sted: Earnings per
diluted share grew 95% from $0.20 in the three-month period ended
March 31, 2007 to $0.39 in the three-month period ended March 31,
2008).

Also, the seventh graf is corrected to read as follows: Stock
based compensation reflects the value of stock options issued to our
independent directors and shares of common stock issued to outside
consultants. The significant decrease in stock based compensation from
the three months ended March 31, 2008 compared to the three months
ended March 31, 2007 reflects the termination of certain consulting
arrangements under which compensation was payable to our outside
consultants in shares of common stock.

The corrected release reads as follows:

UNIVERSAL TRAVEL GROUP ANNOUNCES 2008 FIRST QUARTER FINANCIAL
RESULTS

Revenues and Net Income Substantially Higher than the First
Quarter of 2007

Universal Travel Group Inc. (OTCBB: UTVG) ("Universal Travel
Group" or the "Company"), a fast growing travel services provider in
China specializing in online and customer representative services to
the travel service industry offering packaged tours, air ticketing,
hotel reservation and air cargo transportation, today announced its
financial results for the first quarter ended March 31, 2008.

First Quarter 2008 Highlights

Revenues were $10.0 million, up 45%

Gross profit was $2.8 million, up 26 %

Gross profit margin was 28% compared to 32%

Net income was $1.5 million, up 124%

Net cash from operating activities reached $2.4 million

Diluted earnings per share were $ 0.039 compared to $0.020

"We are very pleased with our results which were achieved despite
the exceptional snow storms that affected China during the period and
significantly disrupted travel. This performance owes a lot to the
increased diversification of our business resulting from the
acquisitions we made in 2007 and our ability to successfully integrate
those businesses" said Ms. Jiangping Jiang, Chairwoman and Chief
Executive Officer of Universal Travel Group. "This, and the expected
positive impact of the Beijing Olympic Games, will enable us to
continue to deliver growth and increased returns to our shareholders."

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*T
First Quarter 2008 Operations Results

Q1 2008 Q12007
------------- ------------

Revenues $ 10,076,304 $ 6,961,140

Cost of Services $ 7,232,758 $ 4,705,678

----------------------------------------------------------------------
Gross Profit $ 2,843,546 $ 2,255,462

General and
Administrative Expense $ 855,522 $ 751,794

Stock based compensation $ 110,012 $ 633,360

Income from Operations $ 1,878,012 $ 870,308

Net Income $ 1,463,865 $ 653,610
*T

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*T
Revenue by business segment:

AIR- PACKAGED
TICKETING CARGO HOTEL TOUR TOTAL
---------- ---------- -------- ---------- -----------
(S) (C) (C) (C) (C) (C)
SALES $1,428,880 $3,123,926 $612,478 $4,911,020 $10,076,304
COST OF
SERVICES $ 73,501 $2,608,620 $194,672 $4,355,965 $ 7,232,758

----------------------------------------------------------------------
GROSS
PROFIT $1,355,379 $ 515,306 $417,806 $ 555,055 $ 2,843,546
*T

Revenues

Revenues were $10,076,304, an increase of 45% compared to
$6,961,140 for three months ended March 31, 2007. This increase was
primarily driven by both the organic growth of the Company's
air-ticketing, hotel reservation and packaged tour businesses and the
integration of the four subsidiaries acquired in 2007. The increase in
revenues was achieved despite record snowfalls during the first
quarter of 2008 which significantly disrupted travel within China.

Gross Profit

Gross Profit for the three month ended March 31, 2008 was
$2,843,546 compared to $2,255,462 in the corresponding period of 2007,
a 26% year-over-year growth which reflects the Company's aggressive
growth strategy as exemplified by continued growth in its traditional
customer base and the acquisitions of SSD, XGN, SLB and FOI.

Gross profit margin

Gross profit margin for the first quarter of 2008 was 28% compared
to 32% for the same period of 2007. This decrease was primarily due to
the fact that the packaged tour, air cargo and hotel reservation
businesses acquired by the Company represent a higher ratio of cost of
services to revenues than the mix of businesses that existed prior to
such acquisitions.

Selling, general and administrative expenses

The Company's selling, general and administrative expenses
("SG&A") for the three months ended March 31, 2008 totaled $855,522,
compared to $751,794 for the three months ended March 31, 2007. As a
percentage of sales, SG&A expenses declined to 8% in the quarter from
11%, reflecting the fact that the acquired businesses record the
majority of their expenses as cost of services, resulting in a
relatively low ratio of SG&A to revenues.

Stock based compensation

Stock based compensation reflects the value of stock options
issued to our independent directors and shares of common stock issued
to outside consultants. The significant decrease in stock based
compensation from the three months ended March 31, 2008 compared to
the three months ended March 31, 2007 reflects the termination of
certain consulting arrangements under which compensation was payable
to our outside consultants in shares of common stock.

Interest expense

Interest expense for the three months ended March 31, 2008 totaled
$36,707 compared to $980 for the three months ended March 31, 2007.
The increase in interest expense results primarily from a loan to help
pay down the indebtedness incurred in connection with the acquisitions
consummated during 2007.

Net income

Net income for the quarter was $1,463,865 or 15% of Revenues
compared to $653,610 or 9% of Revenues for the corresponding period of
2007. This increase in net income was mainly due to the continued
growth in the Company's business and the four acquisitions completed
in 2007 while stock based compensation decreased 83%.

Earnings per diluted share grew 95% from $0.020 in the three-month
period ended March 31, 2007 to $0.039 in the three-month period ended
March 31, 2008.

Liquidity and Capital Resources

Cash for operations and liquidity needs are funded primarily
through cash flows from operations and short-term borrowings. Cash and
cash equivalents were $6,391,248 at March 31, 2008. Current assets and
current liabilities as of March 31, 2008, were $16,854,321 and
$6,439,461, yielding working capital of $9,814,866. The Company
believes that the funds available from operations are adequate to meet
its operating needs in 2008 and satisfy the debt incurred in
connection with the acquisition of FOI ($599,737). For the three
months ended March 31, 2008, net cash provided by operating activities
was approximately $2,373,693, which resulted primarily from organic
growth.

Capital expenditures

Total capital expenditures for the three months ended March 31,
2008 were $5,647 for purchase of fixed assets, primarily machinery and
equipment. The Company has no plans for material capital expenditures
during 2008.

Conference Call

Universal Travel Group will host its conference call at 8:00 a.m.
ET, on Thursday, May 15, 2008. Ms. Jiangping Jiang, Chairwoman and
Chief Executive Officer and Mr. Jing Xie, Secretary of the Board and
Vice President will be on the call to discuss the Company's first
quarter financial results..

To participate in the conference call, please dial any of the
following numbers:

USA: 1-866-412-1097

International: +1-706-634-5763

North China: 10-800-713-0755

South China: 10-800-130-0724

The conference ID for the call is 46951243.

A replay of the call will be available beginning at 9:00 a.m. ET
on May 15, 2008 and will remain available through midnight on May 21,
2008.

To access the replay, please dial any of the following numbers:

USA: 1-800-642-1687

International: +1-706-645-9291

Passcode is 46951243.

This conference call will be broadcast live over the Internet on
Universal Travel Group's website at us.cnutg.com

To listen to the live webcast, go to us.cnutg.com and click
on "Universal Travel Group Q1 2008 Earnings Conference Call". The
replay of the webcast will be available for 30 days and will be
archived on the Investor Relations page of the website after 30 days.

About Universal Travel Group

Universal Travel Group, a fast growing travel services provider in
China, is engaged in providing reservation, booking, and domestic and
international travel and tourism services throughout China via the
internet and through customer representatives. Under the theme "Wings
towards a more colorful life" the company's core services include tour
packaging for customers, booking services for air tickets and hotels
as well as air cargo transportation. In 2007, Universal Travel Group
completed the acquisitions of Speedy Dragon, specializing in air cargo
transportation; Xi'an Golden Net, specializing in travel packaged
tours; Shanghai LanBao, specializing in hotel reservation and Foshan
Overseas International, a China-based company that handles domestic
and international travel inquiries as well as corporate travel,
offering specialized packages that include national and international
air ticket booking, hotel reservations, conference center reservations
and rental cars. Universal Travel's goal is to become China's leading
travel services provider in all fields of the tourism industry
including the aviation, cargo, hotel booking and tour packaging
segments. For more information, visit us.cnutg.com.

Forward Looking Information

Universal Travel Group ("we" or the "Company") desires to take
advantage of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. This report contains a number of
forward-looking statements that reflect management's current views and
expectations with respect to our business, strategies, future results
and events and financial performance. All statements made in this
press release other than statements of historical fact, including
statements that address operating performance, events or developments
that management expects or anticipates will or may occur in the
future, including statements related to future cash flows, revenues,
profitability, adequacy of funds from operations, statements
expressing general optimism about future operating results and
non-historical information, are forward-looking statements. In
particular, the words "believe," "expect," "intend," " anticipate,"
"estimate," "may," "will," variations of such words and similar
expressions identify forward-looking statements, but are not the
exclusive means of identifying such statements and their absence does
not mean that a statement is not forward-looking. These
forward-looking statements are subject to certain risks and
uncertainties, including those discussed below.

Our actual results, performance or achievements could differ
materially from historical results as well as those expressed in,
anticipated or implied by the forward-looking statements contained
herein. We do not undertake any obligation to revise these
forward-looking statements to reflect any future events or
circumstances. Readers should not place undue reliance on
forward-looking statements, which are based on management's current
expectations and projections about future events, are not guarantees
of future performance, are subject to risks, uncertainties and
assumptions (including those described below) and apply only as of the
date of this report. Our actual results, performance or achievements
could differ materially from the results expressed in, or implied by,
the forward-looking statements contained herein. Factors that could
cause or contribute to such differences include, but are not limited
to, those discussed in "--Risk Factors" below as well as those
discussed elsewhere in this report, and the risks discussed in our
press releases and other communications to shareholders issued by us
from time to time, which attempt to advise interested parties of the
risks and factors that may affect our business. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise

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*T
UNIVERSAL TRAVEL GROUP
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2008 AND DECEMBER 31, 2007

2008 2007
---------- -----------
ASSETS
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $ 6,391,248 $ 2,671,684
ACCOUNTS RECEIVABLE, NET 4,945,013 5,403,820
OTHER RECEIVABLES AND DEPOSITS, NET 546,259 1,297,426
REFUNDABLE ACQUISITION DEPOSIT - 1,453,050
DUE FROM SHAREHOLDERS 134,837 1,444,818
TRADE DEPOSIT 3,589,149 2,650,744
ADVANCES 641,757 616,861
PREPAID EXPENSES 606,058 713,668
---------- ----------
TOTAL CURRENT ASSETS 16,854,321 16,252,071

PROPERTY & EQUIPMENT, NET 120,170 127,393
INTANGIBLE ASSETS 10,239 18,626
GOODWILL 13,526,809 13,526,809
---------- ----------
13,657,218 13,672,828
---------- ----------
TOTAL ASSETS $30,511,539 $29,924,899
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
NOTES PAYABLE - BANK $ 1,212,207 $ 1,288,554
NOTE PAYABLE - OTHERS 599,737 1,576,750
ACCOUNTS PAYABLE AND ACCRUED EXPENSES 3,260,782 3,604,666
CUSTOMER DEPOSITS 1,012,841 1,132,886
INCOME TAX PAYABLE 353,894 664,995
---------- ----------
TOTAL CURRENT LIABILITIES 6,439,461 8,267,851
========== ==========

STOCKHOLDERS' EQUITY

COMMON STOCK, $.001 PAR VALUE, 70,000,000
SHARES AUTHORIZED, 37,031,256 AND 36,809,036
ISSUED AND OUTSTANDING 37,032 36,810
ADDITIONAL PAID IN CAPITAL 9,201,306 8,601,534
OTHER COMPREHENSIVE INCOME 896,335 545,164
STATUTORY RESERVE 372,144 372,144
RETAINED EARNINGS 13,565,261 12,101,396
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 24,072,078 21,657,048
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $30,511,539 $29,924,899
========== ==========
*T

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*T
UNIVERSAL TRAVEL GROUP
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31,

2008 2007
------------ -----------

GROSS REVENUES, $ 10,076,304 $ 6,961,140
COST OF SERVICES 7,232,758 4,705,678
----------- ----------
GROSS PROFIT 2,843,546 2,255,462
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 855,522 751,794
STOCK BASED COMPENSATION 110,012 633,360

1,103,835 1,385,154
----------- ----------
INCOME FROM OPERATIONS 1,878,012 870,308
----------- ----------

OTHER INCOME (EXPENSE)
LOSS ON ASSET DISPOSAL (1,104) -
OTHER INCOME 2,874 10,100
INTEREST INCOME 1,415
INTEREST EXPENSE (36,707) (980)
----------- ----------
TOTAL OTHER INCOME (EXPENSE) (33,522) 9,120
----------- ----------
INCOME BEFORE INCOME TAXES 1,844,490 879,428

PROVISION FOR INCOME TAXES 380,625 225,818
----------- ----------
NET INCOME $ 1,463,865 $ 653,610
=========== ==========

NET INCOME PER COMMON SHARE
BASIC $ .040 $ .020
DILUTED $ .039 $ .020

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC 36,920,146 32,692,142
DILUTED 37, 220,146 32,692,142
*T

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UNIVERSAL TRAVEL GROUP
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31,

2008 2007
========= ==========

CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME $1,463,865 $ 653,610
ADJUSTMENTS TO RECONCILE NET INCOME TO NET
CASH
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 19,489 18,961
LOSS ON ASSET DISPOSAL 1,105
STOCK BASED COMPENSATION 110,102 633,360
(INCREASE) / DECREASE IN ASSETS:
ACCOUNTS RECEIVABLE 458,807 (1,563,798)
OTHER RECEIVABLE 751,167 (509,696)
ADVANCES (24,896) (974,229)
DUE FROM SHAREHOLDER 1,309,981 197,011
PREPAID EXPENSES (2,492) (403,365)
TRADE DEPOSITS (938,405) 86,812
DEPOSITS - (386,325)
INCREASE / (DECREASE) IN CURRENT LIABILITIES:
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (343,884) 1,557,715
CUSTOMER DEPOSITS (120,045) -
INCOME TAX PAYABLE (311,101) (38,089)
--------- ----------
TOTAL ADJUSTMENTS 909,828 (1,381,643)
--------- ----------

NET CASH PROVIDED BY(USED IN) OPERATING
ACTIVITIES 2,373,693 (728,033)
--------- ----------

CASH FLOWS FROM INVESTING ACTIVITIES
PURCHASE OF PROPERTY & EQUIPMENT (5,647) (11,118)
PROCEEDS FROM ASSET DISPOSAL 663 -
ACQUISITION DEPOSITS 1,453,050 2,881,823
PAID FOR ACQUISITION - NET OF CASH ACQUIRED - (2,982,200)
--------- ==========
NET CASH USED BY INVESTING ACTIVITIES 1,448,066 (111,495)
--------- ==========

CASH FLOWS FROM FINANCING ACTIVITIES
(REPAYMENTS)PROCEEDS FROM BANK LOAN - NET (76,347) 1,148,380
PROCEEDS OF EQUITY FINANCING 599,994 -
NOTE PAYABLE - OTHERS (977,019) -
--------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES (453,372) 1,148,380
--------- ----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS 351,171 1,632

NET CHANGE IN CASH AND CASH EQUIVALENTS 3,719,558 310,484
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE 2,671,684 $ 1,043,555
--------- ----------
CASH AND CASH EQUIVALENTS, ENDING BALANCE $6,391,242 $ 1,354,039
========= ==========
SUPPLEMENTAL DISCLOSURES:
CASH PAID DURING THE YEAR FOR:
INTEREST PAYMENTS $ 36,707 $ 980
========= ==========
INCOME TAXES $ 691,726 $ 263,907
========= ==========
OTHER NON-CASH TRANSACTIONS
PURCHASED GOODWILL $(3,621,513)
FAIR VALUE OF ASSETS PURCHASED LESS CASH
ACQUIRED (360,687)
ACQUISITION FINANCED WITH STOCK ISSUANCE 1,000,000
ACQUISITION PAID FOR WITH CASH - NET OF
ACQUIRED $(2,982,200)
*T

Universal Travel Group Inc.
Jing Xie, 86-755-83668489
Secretary of Board & Vice President
06@cnutg.cn
or
Christensen
Kathy Li, 212-618-1978
kli@christensenir.com

Copyright Business Wire 2008