SOYO® Group Announces First Quarter Results; Strong Sales of LCD Televisions and Monitors Drive 191.4% Increase in Revenue

Business Wire, May 18, 2006

ONTARIO, Calif. -- SOYO(R) Group Inc. (OTCBB:SOYO), a leading global provider of computer, consumer electronics and broadband telecommunications products, announced today first quarter results for the period ended March 31, 2006. The company reported revenue of $11,548,187, an increase of 191.4% compared to $3,962,520 in the year-earlier period. 2006 first quarter sales increased significantly as a result of sales of LCD televisions. The company had no sales of LCD televisions in the comparable period in 2005.

Soyo had gross profit of $1,651,088, compared to gross profit of $1,611,207 in the fiscal 2005 first quarter. Gross margin in 2005 was unusually high as a result of $1,089,172 of income derived from "Prior Year's Purchases Discounts and Allowances settled in 2005." The company had income from operations of $15,393, compared to income from operations of $397,896 in the year-earlier period. Soyo reported a net loss of $(274,135) versus net income of $386,675 in the period ended March 31, 2005. The fiscal 2006 first quarter net loss attributable to common stockholders was $(323,991) or $(0.01) per diluted share, compared to net income of $347,462 in the fiscal 2005 first quarter. The 2006 net loss included approximately $360,000 of noncash expenses to comply with the requirements of SFAS 123R which the company did not incur in fiscal 2005.

"We are pleased with the strong demand for our LCD monitors and televisions," said Ming Chok, chief executive officer of SOYO Group Inc. "In 2005, we produced and sold High Definition LCD televisions for the first time. We generated more than $18 million in new revenue from sales of LCD televisions in 2005, despite the fact that we did not spend significantly on marketing. The results of our 2006 first quarter sales were slightly below our expectations, due to a customer requested shipping delay. We shipped that product order in the first few days of Q2. While LCD television sales are very price competitive, we continue to leverage our high SOYO brand recognition into our higher margin business segments, in consumer electronics, computer peripherals and communication equipment. With new products in areas such as VoIP and Skype Handsets, Bluetooth Headsets and High Capacity USB Portable Storage Drives, we believe Soyo is well positioned to drive both revenue and margin increases throughout 2006."

About SOYO Group

SOYO Group Inc. is a leading global provider of computer, consumer electronics, and broadband telecommunications products and services. Headquartered in Ontario, Calif., with sales offices in South America, SOYO Group sells its products through an extensive network of authorized distributors, resellers, system integrators, VARs, retailers, mail-order catalogs and e-tailers, including Walmart.com, eCost.com, Fry's, PC Mall, QVC and Office Depot Canada, among others. For more information about the company and its products, please call 909-292-2500 or visit our Web site at http://www.soyogroup.com.

Safe Harbor Act Notice

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings. Third-party statements contained herein and information contained on any third-party Web site are not endorsed by or adopted by SOYO, nor has their accuracy been verified by SOYO.