Cogo Announces Acquisition to Close in 1Q 2011

Cogo Group, Inc. COGO today announced its intent to acquire certain businesses of MDC Tech, Inc. The businesses will be merged into Cogo's existing Industrials business, which currently comprises about 18% of the company's total revenue and represents its fastest growing business segment. MDC focuses on two of the fastest growing industrial markets in China: the Smart Grid roll-out and Medical Equipment. The deal is expected to close in the first quarter of 2011 and will likely be an all-cash transaction of $22 million that will be paid over several quarters. It is anticipated that MDC will contribute revenue of approximately $15 to $20 million and $2 to $2.5 million in operating income in the first four quarters after closing.