ACL Semiconductors Announces Results for First Quarter 2007

Business Wire, May 17, 2007

Revenue Increases 27.25% for the 1(st) Quarter

HONG KONG -- ACL Semiconductors, Inc. (OTCBB:ACLO), today announced its financial results for the quarter ending March 31, 2007.

The company reported sales for the first quarter ending March 31, 2007 of $32,035,367 compared with $25,175,653 for the prior comparable period ending March 31, 2006, an increase of 27.25%. Gross profit was $887,229 for the quarterly period, a decrease of approximately 7.10% over the prior year. The company reported net income for the quarterly period of $65,850 compared with $113,779 for the first quarter in 2006. The decrease in net income is mainly due to an increase in interest expense for the quarterly period as the company continues to fund expansion with bank credit lines.

In announcing the results, Chief Financial Officer Kenneth Chan stated, "The first quarter is typically our slowest period of the year; however, the financial results reveals a forecast for trends that we believe may remain constant throughout the rest of 2007. First, our increase in revenue by 27.25% is welcome news as it demonstrates even further demand in our core memory distribution business. We expect this demand to remain robust for 2007. Second, our decrease in gross margin for the quarter is the result of a Samsung mandated commission reduction. For this reason, management remains vigilant in leveraging our related experience in the region and keen on seeking higher margin opportunities to enhance shareholder value."

About ACL Semiconductors, Inc.

ACL has been a leading distributor of Samsung and other memory chip products, including DRAM, Flash, SRAM and Mask ROM products for the Hong Kong and Southern China markets since 1991, and has achieved annual sales in excess of one hundred million dollars since 2004. ACL Semiconductors has been in business in Asia for the past 15 years and, during that time, has evolved as an integral part of southern China's development while serving the OEM and ODM manufacturing base for mobile phones, PDA's, digital cameras, laptop computers, MP3 players and other consumer electronics worldwide. The company has more than 200 customers in Hong Kong and southern China. ACL Semiconductors, Inc. trades on the OTCBB under the symbol, ACLO.

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 ACL Semiconductors, nor have ACL Semiconductors or its affiliates verified their accuracy.