Ninety-three Percent of Greater China, South Korea Electronics Manufacturers Expect to Meet European RoHS Deadline

HONG KONG, February 18, 2006 – Global Sources’ (NASDAQ: GSOL) RoHS Compliance Readiness Survey: Mainland China, Taiwan, Hong Kong and South Korea shows 93 percent of electronics manufacturers expect to comply with the European Union’s Restriction of the Use of Hazardous Substances (RoHS) directive by July 2006.

RoHS or EU Directive 2002/95/EC restricts the use of certain substances including lead, mercury and cadmium in electrical or electronic equipment sold or used in the European Union after July 1.

The report was compiled through questionnaires completed by 359 manufacturers in mainland China, Taiwan, Hong Kong and South Korea. These companies currently export or plan to export electronic devices and components to the EU.
Report publisher, Mark Saunderson, said: “Fifty-one percent of surveyed companies said they are already RoHS-compliant. Forty-two percent expect to be compliant by mid-year. Companies that export relatively small volumes to the EU are still evaluating the impact of compliance on their production.”


Electronics manufacturers expect RoHS compliance to increase costs and prices
Saunderson added: “RoHS compliance involves upgrading manufacturing facilities and ensuring component suppliers are RoHS-compliant. The costs can be significant; 64 percent of surveyed companies expect compliance to impact prices.”

The RoHS Compliance Readiness Survey shows:
- 35 percent of manufacturers expect their prices to increase by less than 5 percent
- 23 percent expect prices to increase by between 5 and 10 percent
- 6 percent expect prices to increase by more than 10 percent

Hong Kong manufacturers lead in RoHS compliance
With the EU being a critical market for many Hong Kong manufacturers, 84 percent of surveyed Hong Kong manufacturers indicated they are already RoHS-compliant.

Manufacturers in other regions have more diversified markets and compliance levels are correspondingly lower—at 63 percent in Taiwan, 50 percent in mainland China, and 9 percent in South Korea.

RoHS Compliance Readiness Survey: Mainland China, Taiwan, Hong Kong and South Korea is part of Global Sources’ sourcing and product information services, which include Global Sources trade magazines, Global Sources Online, Global Sources Direct and the China Sourcing Fairs.

To obtain a free copy of the report, visit www.globalsources.com/SITE/ROHS.HTM.

About Global Sources
Global Sources is a leading business-to-business (B2B) media company and a primary facilitator of two-way trade with Greater China. It provides sourcing information to volume buyers and integrated marketing services to suppliers.

The company helps its community of more than 479,000 active buyers to source more profitably from complex, overseas supply markets. With the goal of providing as many effective ways as possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in 230 countries.

The company offers the most extensive range of media and export marketing services in the industries it serves. Suppliers using its four primary channels – online marketplaces, magazines, trade shows and direct online sales – are supported by its advertising creative, education programs and online content management applications.

Global Sources delivers information on 1.4 million products and more than 130,000 suppliers annually through 10 leading online marketplaces and monthly magazines, more than 100 sourcing research reports, and 14 China Sourcing Fairs and other trade shows. Buyers send more than 5.8 million inquiries annually to suppliers through Global Sources Online (www.globalsources.com) alone. Global Sources Direct is the company's new initiative that helps suppliers sell online.

In mainland China, Global Sources has a 25-year track record and 1,400 team members in 44 locations. Its services are backed by 35 years experience as a trade magazine publisher, 14 years as an organizer of trade shows, and 10 years as an online marketplace operator.