HUIZHOU, Guangdong, China -- Qiao Xing Universal Telephone, Inc.(NASDAQ:XING)today announced that management expects the net results for the fourth quarter of 2007 of the Company to be positive and major indicators of financial performance for the fiscal year of 2007 for the Company to reach a record high.

Brief Review of the Past Three Quarters

The Company's mobile phone business has experienced rapid growth in the first nine months of 2007: about 3,600,000 units of mobile phone handsets were shipped, an increase of about 80% compared to the same period last year.

The Company's net results and basic earnings per share of common stock have been affected by certain non-cash income and expenses and the effect of the participatory convertible bonds in the calculation of the basic earnings per share, which, in the opinion of the Company's management, may not be indicative of the operating results of the core business of the Company. The non-cash income and expenses related to net gain on conversion of XING convertible bonds by bond holders to shares of a subsidiary, gain on deemed disposal of a subsidiary through IPO, share-based compensation expenses, amortization of acquired intangible assets, non-cash interest expenses, loss on re-measurement of embedded derivatives and extraordinary gain on acquisition of minority interests in a sub-subsidiary by a subsidiary. The effect of the participatory convertible bonds in the calculation of the basic earnings per share related to the bond holders' entitlement to participate in dividends when, and if, dividends are declared on common stock.

Qiao Xing Universal Telephone Inc. (Nasdaq: XING)