HONG KONG, July 14, 2008 – Confronted with rising production costs and a higher Yuan, 92 percent of Greater China craft gift suppliers expect to raise prices in the coming months. This is according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Craft Gifts (http://www.ChinaSourcingReports.com/craftgifts).

"While nearly all export industries in Greater China are being affected by higher production costs and a rising Yuan, craft gift suppliers are particularly hard hit because they operate at extremely low margins" said Report Publisher, Spenser Au.

"However, due to intense competition for orders, most suppliers have no choice but to limit price increases to less than 10 percent."

Among surveyed craft gift suppliers planning to increase export prices:

• 44 percent project increases of up to 5 percent;
• 31 percent expect increases of between 5 and 10 percent;
• 14 percent say they plan to increase quotes by 11 to 15 percent; and
• 11 percent expect increases greater than 15 percent.

As for primary challenges manufacturers said they expect to face over the coming months:

• 30 percent said the Yuan-USD exchange rate;
• 26 percent pointed to the cost of raw materials;
• 21 percent referred to design copying / piracy;
• 13 percent said price competition; and
• 10 percent cited higher labor costs.

Greater China Craft Gift Suppliers Remain Optimistic, Targeting North America and EU

Au said: "Despite the challenges, companies are still expecting robust overseas sales in the coming months. In fact, 79 percent are predicting growth of more than 10 percent and a majority of those surveyed are expanding capacity by more than 20 percent.

"North America and the EU remain the top export destinations where over 90 percent of manufacturers are focusing their efforts."

Among surveyed suppliers' plans for the coming months:

• 48 percent plan to target exports to North America;
• 44 percent say they plan to focus on exports to the EU; and
• 8 percent plan to target exports to non-EU European countries or the Asia / Pacific region.

In-Factory Interviews, Price Forecasts and New Craft Gift Export Models

The 98-page China Sourcing Report: Craft Gifts provides detailed profiles of 39 suppliers with verified manufacturing and export credentials. It includes a Product Gallery featuring 89 of the most popular export models, with key specifications and full-color pictures.

The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources Websites, Face-to-Face Events, Trade Magazines and Research Reports

China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online (http://www.globalsources.com), China Sourcing Fairs (http://www.chinasourcingfair.com), Global Sources monthly magazines and Global Sources Direct (http://www.GlobalSourcesDirect.com). For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://corporate.globalsources.com.

The China Sourcing Report: Craft Gifts is available for purchase at http://www.ChinaSourcingReports.com/craftgifts .

Free information about Greater China craft gift suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/craft-gift.htm .