SinoHub Signs Lease to Expand Hong Kong Warehouse Facilities Three-Fold

SANTA CLARA and SHENZHEN, China, Dec. 2 /PRNewswire-Asia/ -- SinoHub, Inc. (NYSE Amex: SIHI) today announced it has signed a new three-year lease, expanding its warehouse facilities in Hong Kong nearly three-fold to 79,500 square feet to support its growing business operations.

The addition of a new 53,000 square-foot full floor on top of the half floor currently occupied will enable SinoHub to increase the value of electronic components that it can handle using its proprietary online SinoHub SCM(TM) service platform to a potential processing volume of approximately $200 million per month, assuming a similar business and product mix.

SinoHub's Hong Kong facility serves as its gateway for processing all electronic component imports into China. Currently, the company's facility, which includes a procurement-fulfillment hub, bonded warehouse and transshipment hub, totals 26,900 square feet and processes nearly $70 million in monthly processing volume of electronic components.

"SinoHub continues to experience strong momentum and significant growth because our customers manufacture 'must-have' products, roughly 90% of which are sold in developing countries," said Harry Cochran, chief executive officer. "The mobile phone sector, which comprises approximately 70% of our business, is expected to show continued growth over the next several years with overall handset sales in China, our principal market, realizing similar growth. At the same time, we have begun selling in new, underserved markets where we see significant opportunities for sales of 'white box' mobile phones."

According to estimates published in a recent J.P. Morgan report titled "And Then There Was One: Rolling Out a Global J.P. Morgan Handset Model," the global 'white box' mobile phone market is expected to reach approximately 211 million unit sales worldwide in 2009, 255 million units in 2010 and 286 million units in 2011.

"We believe SinoHub is just beginning to realize the benefits of our unique position in the electronics value chain, based on the integrated services we have built around our electronics supply chain management core," Cochran said. "Taking a lesson from Google, we are using SinoHub SCM, to put our customers in control of their business with us, which allows them to increase transparency, productivity and reliability."

Cochran said SinoHub's growing recognition in the electronic components industry for mobile phones in China contributed to a 61.5% increase in total net sales for the first nine months of 2009 over the prior-year period. He said the new facility will enable the company to support continued expansion and maintain growth momentum.

The company expects to occupy the new facility later this month. SinoHub's strategic service center network includes facilities in Hong Kong, Shenzhen, Hangzhou, Shanghai and Beijing.

About SinoHub

SinoHub, Inc. provides world-class supply chain management services with transparent information access for participants in the electronic components supply chain in China. The company was founded in 2000 by veteran entrepreneur Harry Cochran and electronic component industry veteran Lei Xia to facilitate the electronics revolution 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. For more information, visit the company's Web site at http://www.sinohub.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. You can identify forward-looking statements 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 us, significant uncertainties, and other factors, many of which we cannot predict with accuracy and some of which we might not even anticipate, which may cause our 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. Readers are cautioned not to place undue reliance on these forward-looking statements.

Among the factors about which we have made assumptions are:

-- That the addition of a new 53,000 square foot full floor on top of the

half floor currently occupied will enable SinoHub to increase the value

of electronic components that it can handle to a potential processing

volume of approximately $200 million per month, assuming a similar

business and product mix is handled in the future;

-- SinoHub operations benefiting from investments in the SCM technology

platform;

-- SinoHub's ability to effect significant sales of 'white box' mobile

phones outside of China.

-- SinoHub's expectation to occupy the new facility in December.

Except as required by law, the company assumes no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future. For further information on factors which could impact us and the statements contained herein, see the "Risk Factors" included pursuant to Item 8.01 and Exhibit 99.1 of SinoHub's Current Report on Form 8-K filed with the Securities Exchange Commission on September 28, 2009. The company assumes no obligation to update and supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

For more information, please contact:

Investors:

PondelWilkinson Inc.

Laurie Berman/Angie Yang

Phone: +1-310-279-5980

Email: investor@pondel.com

In China:

Falicia Cheng

Phone: +86-755-2661-1080

Email: falicia@sinohub.com