InfoSmart Secures Initial Order From Media Asia Distribution

InfoSmart Group, Inc., a recordable digital versatile disc (DVDR) and Blu-ray (BD) manufacturer in Hong Kong and Brazil, today announced it secured an initial order from a leading media and entertainment company, Media Asia Distribution, in Hong Kong.

A recorded media supplier of live concerts and films in Asia, Media Asia Distribution has provided InfoSmart with a 2,000 unit test order for a film by two popular Cantonese actors, Andy Lau and Sammi Cheng, and expects to place Blu-ray disk production orders with InfoSmart of 40,000 units by September, 2008. This will be InfoSmart’s first order produced on the Company’s newly installed Anwell Blu-ray equipment line purchased in March of this year and installed over the May and June timeframe. The Company’s initial order represents the first of many sales it is forecasting as the sole supplier of Blu-ray in the estimated annual 6,000,000 (six million) unit BD disk market in Hong Kong and China. The Company estimates monthly demand of BD disks for Hong Kong at 350,000 units and 150,000 units from China.

Media Asia Distribution is one of many Hong Kong-based media reproduction companies identified by InfoSmart whose future reproductions are 100% dedicated to the BD format. "This first order is one of many we anticipate will follow," began Parker Seto, CEO of InfoSmart. "As the only Blu-ray producer in Hong Kong and the first in China, we expect to see several future orders as Blu-ray begins to dominate the visual media market," Seto concluded.

Initial orders for ‘short runs’ of a Blu-ray disks are used to confirm the format’s high reproduction standards are achieved prior to initiating full production runs. Shortly after random samples for the short run are tested and certified; the order for retail distribution is placed into production. InfoSmart confirmed BD unit sales produce the highest margins of all the media the Company produces, nearly three times that of its traditional CD and DVD product segments. InfoSmart is forecasting BD sales to contribute 10% of third and fourth quarter revenues this year and 20% or more of Asia regional revenues in 2009.