Hangzhou Sanhe Electronic Technology, a subsidiary of China 3C Group, a retailer and distributor of consumer and business products, has signed separate agreements with Galanz Group and Huipu Electronic Company.

Under the terms of the agreements, Hangzhou Sanhe will be an authorized retailer and distributor of Galanz and HPC products in Eastern China. The agreements are expected to provide China 3C Group with annual revenues of approximately US$4 million in 2007.

Zhenggang Wang, CEO of China 3C Group, said, "After our successful cooperation with TV manufacturers like TCL and Eflag, our agreement with HPC will further increase our share in the LCD TV market. Through our cooperation with Galanz, our microwaves and air conditioner sales will be significantly increased. These new agreements will further strengthen our leadership in the Eastern China market."

Galanz Group is one of the largest manufacturer of microwaves in the world. Currently, Galanz produces over 15 million microwaves a year, which represents approximately 40% of the world's microwave market. The company
also has 600 patents in microwave technology, and is the second largest manufacturer of air conditioners in China.