China Premium Lifestyle Enterprise, Inc. this week reported net sales for the quarter ending March 31, 2007 of approximately $17 million, an 84% increase over net sales for the similar period one year ago of approximately $9.2 million. The company reported a net loss for the quarter of approximately $260,000, which represented a reduction of over 25% from the net loss incurred in the corresponding period last year.

The company attributed the growth in sales to its new and used vehicles trading segment, where there was an increase of deliveries of the Ferrari 8-cylinder models, F430, and Spider together with the sellout performance of the new Ferrari 12-cylinder, F599 GTB Fiorano. Vehicle sales were approximately $15.82 million for the first quarter of 2007 compared to approximately $8.26 million in the similar period one year ago. Sales of parts and services also increased in the quarter to approximately $1.2 million as compared to approximately $970,000 for the preceding period. The increase in parts and services sales was attributed to significant growth of both Ferrari and Maserati customers during the last few years, now requiring parts and service for regular maintenance.

Richard Lee, Chairman and CEO of the company - which in March agreed to acquire the distribution rights for Alfa Romeo in Macau and Hong Kong - stated: "I am very pleased to report a record first quarter result for our company, with sales increasing more than 80% from the comparable period in 2006." Mr. Lee continued: "Although the company reported a net loss for the period, it is important to note that historically, the first quarter of the year is generally the worst performing as production schedules of the manufacturers are fine tuned, with the bulk of vehicle deliveries taking place in the latter part of the year.
 

"Of particular note in these results is the excellent performance of the China Division, where sales far exceeded expectations in our Dalian dealership, which was only commissioned in October last year. This performance is largely reflective of our market development ability and the extraordinary growth of the high end consumer market in China, particularly the luxury automobile sector which is becoming a benchmark market for major brands." Mr. Lee continued: "While traditionally the company's strongest quarter is the fourth quarter, the first quarter saw strong cash inflow from operations of approximately $1,438,000 for the period and the company's account receivables decreased by approximately $6.8 million, primarily due to the collection of account receivables for sales recognized in the fourth quarter of 2006." Mr. Lee concluded: "Given the strong performance for the first quarter, and bearing in mind our order book and sales forecasts for the balance of the year, we expect our 2007 performance to continue to exceed expectations."

China Premium Lifestyle Enterprise, through its 49%-owned entity, has established itself as a leading Ferrari and Maserati importer, distributor and dealer in Hong Kong and dealer in China, having been affiliated with Ferrari and Maserati since 1992 and 1994 respectively. The company is expanding its offerings to include other luxury brands and goods from around the world, which it markets to its already established base of wealthy Chinese individuals.