New Blu-ray Disc Strategy for DVD-R Maker InfoSmart

InfoSmart Group, Inc., a recordable digital
versatile disc
("DVDR") manufacturer in Hong Kong and Brazil, today provided
an update on
its strategic plans regarding the Blue-ray Disc format.

In 2007, InfoSmart successfully transitioned several of
its DVD production
lines to the state of Bahia, Brazil, to capitalize on strong
demand from
South America. In doing so, InfoSmart opened a local subsidiary,
Discobras, based in the state’s largest city, Salvador.
As a local
employer and company operating in the computer information
sector,
Discobras’ VAT rate is only 2.26% versus the standard 12%
in Salvador and
18% in Sao Paulo. Discobras is equally exempt from paying
import duties
("ICMS") on raw material for production. These materials
are valued at 70%
to 100% fully loaded costs of DVD imports. Both tax benefits
will last
through June 2016. The Company now intends to utilize this
tax advantage
as they prepare to enter the Blu-ray Disc market. The tax
incentive
available to InfoSmart in Brazil is also applicable to other
household
electronics, telecommunication equipment, and electronic
storage media that
would further leverage the competitiveness of its product
pricing and avail
the company to expand into other technology products covered
under the tax
benefit.

As it has been widely reported, the Blu-ray Disc format
has taken a
commanding competitive advantage over the HD DVD format.
As of February
19, 2008, more than 450 Blu-ray Disc titles have been released
in the U.S.
and more than 250 in Japan. Blu-ray was locked in a format
war with HD DVD
until Blu-ray’s victory on February 19, 2008. On that day,
Toshiba — the
main driving force behind HD DVD — announced it would no
longer develop,
manufacture and market HD DVD players and recorders. Some
analysts believe
that Sony’s PlayStation 3 video game console played an important
role in
the format war as the PlayStation system used a Blu-ray
disc drive as its
primary information storage medium. They also credited Sony’s
more thorough
and influential marketing campaign.

InfoSmart initiated discussions with Sony and Philips on
a Blu-ray Disc
licensing agreement in January 2008, and the Company continues
to make
steady progress in these negotiations. Based on the recent
events, it is
the Company’s intent to accelerate the negotiation process
with senior
management members of Sony. InfoSmart’s intent as a provider
of Blu-ray
Discs is not just to produce blank Blu-ray Discs, but also
higher margin
duplications of many entertainment films and material for
distributors.
InfoSmart has done much of this work since 2002 as an authorized
dealer
with many film distributors in Asia. These distributors
have purchased the
rights from various U.S. entertainment giants including
Viacom, Sony,
Paramount, Vivendi, to name a few examples. The Company
is making much
headway for new agreements with similar firms in Japan,
China, Hong Kong
and other Asian countries.

InfoSmart is also in discussions with one of the two Blu-ray
Disc producing
machine vendors to initiate an agreement regarding their
Blu-ray production
machines, and is currently testing and planning for their
installation.
InfoSmart has secured the support from their bankers to
move forward with
this potential purchase with only 5%-10% down payment and
a financing to
lease with an option to purchase the Blu-ray Disc machines.
InfoSmart is
capable of adding Blu-ray Disc production lines in the next
4 -5 months.
This will enable the Company to retain their competitive
advantage as a
pioneer in this industry.

InfoSmart has discussed their strategic plan concerning
Blu-ray with their
current customers in Brazil and other parts of the world.
Based on the
current DVD market and existing DVD players, the Company
foresees there
would be at least a 3-5 year period for the current HD DVDs
to remain in
the market before they are transitioned which will protect
current market
pricing and the expanding production capabilities of InfoSmart.
InfoSmart
believes that the change to Blu-ray provides a good opportunity
for the
Company to make higher profits, while they maintain their
competitive edge
in leveraging the Brazilian market through their local manufacturing
base
and tax-driven advantages in the traditional DVD market.

The Company’s President and CEO, Parker Seto, is preparing
to transition
InfoSmart’s international markets to the new standard, Blue-ray
formatted
discs. "The news was not a big surprise to a lot of us in
the industry. We
have anticipated a 36 to 72 month transition phase and have
begun
negotiations with several key partners to develop the new
standard moving
forward," Seto stated. "This time frame will allow InfoSmart
to drive
existing HD DVD revenues while simultaneously introducing
higher margin
Blu-Ray DVD products into our sales channels," Seto concluded.

InfoSmart has already initiated its diversification product
strategy
through not only Blu-ray Discs, but also MP4, flash cards,
and other
electronic appliances. Geographically, they are growing
throughout South
America, Europe, Australian, Asia and the U.S. This strategy
will ensure
that the Company will not be over-dependent on any one product,
market or
geographical location.

InfoSmart Group, Inc.