SinoHub Receives First Smartphone Order from HT Mobile

Company anticipates smartphones to represent more than 20% of mobile phone revenue in 2011

SHENZHEN, China, Dec. 2, 2010 /PRNewswire-Asia/ -- SinoHub, Inc. (NYSE Amex: SIHI), a rapidly growing electronics company in the People's Republic of China, engaged in electronic component sales (ECP), private label, custom design mobile phone manufacturing and sales (VCM), and supply chain management (SCM) services, announced today that it has received its first "Smartphone" order from an existing customer, HT Mobile.  The phone was designed utilizing SinoHub's joint design platform, and is based on the Mediatek 6516 chipset and the Android 2.2 operating system. The initial order for 5,000 2.75G handsets is scheduled for shipment in the first quarter of 2011, with follow on orders anticipated.  Margins are expected to be greater than the VCM margins generated during the first three quarters of 2010, and SinoHub expects smartphones to represent over 20% of total phone revenue during 2011.

"This order highlights the compelling value proposition we provide, and our ability to move upstream to more complex, higher-priced, data enabled models," stated Harry Cochran, CEO of SinoHub. "As we continue to successfully execute on our mobile phone growth strategy, we see a tremendous opportunity to deepen our relationship with HT Mobile by helping them deliver world-class, differentiated products to their growing customer base in Indonesia."

With the fourth largest population in the world at more than 230 million people, and an estimated 26-30% mobile phone penetration rate, Indonesia is one of the largest growth markets for mobile phones in the world.  With smartphones accounting for a growing percentage of total phones sold in Indonesia and other developing countries, SinoHub expects this order to provide an entry into this key product segment.

SinoHub anticipates that the lower chipset cost from Mediatek and higher average selling price for these smartphones will allow the Company to generate margins that are superior to the 17.5% gross margin for its VCM business reported in the first nine months of 2010.  The Company is actively marketing its joint design and production platform to mobile phone distributors and carriers in several targeted emerging markets, and expects additional smartphone orders to be forthcoming.

About HT Mobile

HT Mobile is a leading mobile phone distribution company in Indonesia. After launching in 1999 as a distributor for Siemens AG, the company grew steadily into 2005 when HT Mobile's management, mobile phone experts within the Indonesian markets, was involved in the transition of the Siemens AG partnership to a BENQ Siemens AG relationship. In 2007, the company launched its own brand, with the HiTech brand officially launched as the first mobile TV device in Indonesia.  Within the third month of HiTech's launch, the product was sixth in GSM phone sales in the region, as a mobile TV pioneer.  Since 2007, HT Mobile has grown to offering more than 40 mobile phone brands, while steadily growing its market share in the Indonesian market.  In 2008, the HiTech brand became the top selling mobile TV device, with a new management team focused on building upon long-term customer relationships, and expanding its mobile phone coverage and services. In 2009, the HT Mobile brand was launched, continuing the company's successful strategy of introducing new mobile phone products with compelling features and designs at affordable prices.

About SinoHub, Inc.

SinoHub, Inc., founded in 2000 by veteran entrepreneur Harry Cochran and electronics industry veteran Lei Xia to play a part in the electronics revolution in China, provides virtual contract manufacturing (VCM), electronic component purchasing (ECP), and world-class supply chain management (SCM) services with transparent information access for participants in the electronic components supply chain in China. SinoHub conducts substantially all of its operations through its wholly-owned subsidiary, SinoHub Electronics Shenzhen Limited, in the People's Republic of China, and its wholly-owned B2B Chips subsidiary based in Hong Kong, which offers electronic component purchasing and virtual contract manufacturing services currently focusing on the mobile phone market for growth markets in developing countries.  For more information, visit the Company's Web site at http://www.sinohub.com and the B2B Chips Web site at http://www.b2bchips.com .

Cautionary Statement Regarding Forward-looking Information

Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," or "continue" or the negative of those terms. These statements involve risks known to the Company, significant uncertainties, and other factors, many of which cannot be predicted with accuracy and some of which may not even be anticipated, which may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by those forward- looking statements. Such risks, uncertainties and factors include, but are not limited to, the Company's ability to expand its customer base, the Company's expectation of additional orders from HT Mobile and other customers, the Company's ability to increase the percentage of smartphones which it sells, and to thereby increase its VCM gross margins, the sustainability of the competitive advantages which the Company believes are generated by its current business model, the ability to access capital for such expansion, assumptions concerning future economic and competitive conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.