AIVtech International Group Announces Record Annual Sales of $68.3 Million and Earnings of $11 Million in 2010

Financial Highlights for the Twelve Months Ended December 31, 2010

• Revenue of $68.3 million, up 77.6% versus 2009;
• Operating Income of $13 million, up 56% versus 2009
• Record Net Income of $11.0 million, up 47% versus 2009;
• Diluted earnings per share of $0.66 based on 16.6 million shares;
• Company went Public in May 2010

*2010 EPS was based on 16.6 million of shares and 2009 EPS was based on 10.4 million of shares.

"We completed an outstanding year, with record profit and sales, and exceeded our 2010 "make good" earnings per share projections," commented Mr. Jinli Guo, the Chairman and CEO of AIVtech International. "Furthermore, we successfully went public in May 2010 and raised $7.5 million in a private placement with two institutional investors in December 2010, which has strategically positioned our Company for future growth and expansions.  As a result of these accomplishments, we have already published guidance of $13.7 million of net income for 2011. We believe we will continue to see strong growth in all three of our businesses units consisting of electronic furniture, multimedia/digital speakers, and video products in 2011 and beyond. Our core growth strategy will remain product innovation; however increased distribution and improved branding will be our key initiatives going forward that will also contribute greatly to our success."

Financial results for the twelve months ended December 31, 2010

Revenue for the twelve months ended December 31, 2010 was $68.3 million, an increase of 77.6%, compared to $38.5 million for the same twelve month period in 2009. The sales of audio furniture grew at a rate of 34.4% over the same period a year ago to $41.4 million from 2009 levels of $30.8 million. Our multi-media speaker division, lead by our Digi Panda product, improved to $9.1 million in 2010 sales from $7.6 million in 2009, for an improvement of 19%. In addition, the new LED TV product line introduced in June 2010 generated $17.8 million in its first year of revenue during 2010 and contributed 59.6% to the overall revenue increase. Approximately 80% of sales were international, while 20% were domestic.

Cost of sales for the twelve month period ending December 31, 2010 totaled $52.5 million compared to $28.0 million for the same twelve month period in 2009. Gross profit increased 52.6% to $15.9 million for the twelve months of 2010 compared to $10.4 million for the twelve months of 2009. Gross profit margin for the twelve months of 2010 was 23.2% compared to 27.0% for the same period in 2009.  The lower margin was primarily related to the contributions of the new LED TV revenue in 2010.

SG&A margin for 2010 was 4.2% of revenue versus 5.4% of revenue in 2009, down 1.2%, as the company continues to control costs and gain critical mass to improve to the bottom line.

Income from operations increased 56.0% to $13.0 million for the twelve months of 2010 compared to $8.3 million for the twelve months ending December 31, 2009. Operating margin was 19.0% for the twelve months of 2010 compared to 21.6% for the twelve months of 2009.

Net income for the twelve months ending December 31, 2010 increased 47.0% to $11.0 million compared to $7.5 million for the twelve months of 2009. Basic and diluted earnings per share for the twelve months of 2010 totaled $0.66 per share based on 16.6 million shares compared to basic and diluted earnings per share for the twelve months of 2009 of $0.72 on 10.4 million shares.  The increase in shares is related to the Company's going Public transaction in May 2010.

AIVtech's tax rate was 13.1%, up 3.1 points year over year. The increase was attributable to income tax paid on net income generated from Dongguan AIVtech, which was founded in December 2009 and is at the statutory tax rate of 25%.

Liquidity and Capital Resources

As of December 31, 2010, AIVtech had approximately $7.1 million in cash, an increase of $3.5 million over 2009. Accounts receivable were $7.2 million, compared to $2.0 million on December 31, 2009 with the increase related to the ramp up in sales of LED TVs. The $5.2 million increase was primarily attributable to the newly developed TV line in 2010 as the Company extended credit terms to one major distributor to grow sales. Account payable decreased by about $5.1 million from December 31, 2009 due to the company's decision to make more frequent payments during the year.  The current ratio improved to 2.31 to 1 in 2010 versus 1.78 to 1 in 2009.  As of December 31, 2010 working capital totaled $8.5 million, an increase of $3.4 million compared to $5.1 million as of December 31, 2009. Total shareholders' equity was approximately $8.9 million as of December 31, 2010 an increase of $2.8 million from approximately $6.1 million on December 31, 2009.

Mr. Jinlin Guo continued, "2011 will be a year of growth and expansion in all fronts. In second half of 2011, we plan to commence domestic sales of our market leading electronic furniture in China. We also anticipate the Interactive Intelligent Panel will begin generating revenue in the second quarter of 2011 and yield gross profit margins above 30%. We will also be launching other new products and new sales channels internationally.  Additionally, we plan to evaluate select acquisitions and investments to continue building our reputation as a leader of innovative electronic products that are sold around the world."

2011 Guidance & Shareholder Conference Call

The company reiterates its 2011 net income of $13.7 million and earnings per share of $0.61 based on 22.5 million shares. Management will host a conference call to provide shareholders with an update on the business to be hosted on April 13, 2011 at 11 a.m. (EST).  Details of the call will be provided for participants in a release next week.

About AIVtech International Group Co.

AIVtech International Group Co. is the parent company of wholly owned Shenzhen AIVtech Company Limited ("Shenzhen AIVtech"), which owns 70% of Dongguan AIVtech Company Limited ("Dongguan AIVtech"). AIVtech's founder, Chairman, and CEO Jinlin Guo owns the remaining 30% of Dongguan AIVtech. Founded in 2004, the Company focuses on the integration of electronic products, such as multimedia speakers and video games, with furniture and has coined the term "electronic furniture" to describe its products. The Company has three major product categories: (1) electronic furniture, including video chairs with built-in speakers and vibration, as well as leisure furniture with built-in audio/video systems; (2) multimedia/digital speakers; and (3) video products, which includes a new video conferencing system called the Interactive Intelligent Panel which will begin production in early 2011. For more information, visit http://www.aivtechgroup.com.

Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, expectations of signing new customers and contracts, developing new products, projected revenues and earnings, and the success of new products. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond our control that could cause actual events and results to differ materially from these statements. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which are relevant as of the date of the given press release and should not be relied upon as of any subsequent date. AIVtech International Group Co. undertakes no obligation to update the forward-looking information contained in this press release.

AIVtech International Group Co.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME