China Premium Lifestyle Says It is Unaware of Reason Behind Company's Significant Volume and Share Price Decline

HONG KONG--China Premium Lifestyle Enterprise, Inc. (OTCBB:CPMM) today said it was unaware of any reason for the significant price movement and volume activity in its stock on Thursday, February 15, 2007. The price of the company’s common shares declined 34.29% on volume in excess of 2.5 million shares.

According to the company, its business remains strong and the company anticipates releasing its audited year-end results at the end of March, as previously stated. The company affirmed that it remains “comfortable” with revenue projections for the year of $69 million and net earnings of $1.5 million before minority interests as previously announced. “We are not aware of any reason from a company business standpoint for this type of activity and want to assure our shareholders that our business remains strong and vibrant,” said Richard Lee, chairman and CEO of China Premium Lifestyle. Mr. Lee added that company management has not sold shares, nor does management contemplate doing so in the foreseeable future.

China Premium Lifestyle Enterprise, through its 49%-owned entity, has established itself as a leading Ferrari and Maserati distributor and dealer in Hong Kong and China, respectively, having been affiliated with Ferrari and Maserati since 1992 and 1994 respectively. The company is expanding its offerings to include other luxury goods from around the world, which it markets to its already established base of wealthy Chinese individuals.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the Company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this release that are not purely historical are forward-looking statements, beliefs, plans, expectations or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices, and other economic factors. The Company assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. Investors should independently investigate and fully understand all risks before making investment decisions.