China Premium Lifestyle Reports 2006 Results

HONG KONG--China Premium Lifestyle Enterprise, Inc. (“China Premium”) (OTCBB:CPMM) reported audited results for 2006 on April 2.

Consolidated sales for the year were $71.5 million, an increase of 47% over the 2005 fiscal year. Net earnings before taxes and minority interest for the year were $1.8 million, 23% higher than the comparable period for 2005. This included an amount of approximately $300,000 applicable to a one-off cost arising directly from the merger with the predecessor entity, Xact Aid, Inc. in September 2006. Minority interests for the period were $961,000. The company incurred income taxes of approximately $270,000 during the period.

In announcing this result, Richard Lee, Chairman of China Premium commented:

“I am very pleased to be able to announce a record performance in our inaugural full year result as a US public company. Strong performance from our core markets in Hong Kong and Macau in the last half of the year was supplemented by initial revenues from our China distribution network, beginning with the wealthy coastal city of Dalian in the industrial heart of China’s North East. Furthermore, Dalian is gearing up to be the ‘Silicon Valley’ of China, with its well-founded software development and chip manufacturing capability. We are confident we can sell more of our luxurious motor vehicles in this growing market.” Mr. Lee continued: “The unprecedented expansion of the motor vehicle industry in China continues to impress analysts as well as manufacturers. China is now, in terms of unit sales, the second largest car market in the world and global manufacturers, particularly of high-end vehicles, have been announcing plans to increase production to cater for this demand. Our Maserati brand in particular is well positioned to make inroads into the market with the recently introduced, fully automatic Quattroporte sedan and, most recently, the Pininfarina-designed GranTurismo coupe, which was so well received at the Geneva Motor Show in Switzerland last month.”

Mr. Lee added, “As promised in discussions with analysts and investors during the year, the Company is actively carrying out its strategy of expanding both its automotive portfolio and its presence in the non-auto luxury goods sector with the recently announced Alfa Romeo initiative, as well as the exclusive agreement with Falber Confezioni S.r.l. for distribution of the John Richmond group of high-end fashion brands.”

Mr. Lee concluded, “Our commitment to develop China Premium as a key platform for luxury goods in the China market is reflected through our recent expansion initiatives. We intend to continue to develop our automotive dealership base through acquisition of additional dealerships in key high income locations, whilst simultaneously building our portfolio of fashion and accessory brand representation.”

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.

Forward-Looking Statements:

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 document 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. You should independently investigate and fully understand all risks before making investment decisions.