China Logistics Group to Explore Plans to Establish Its Own Warehouse Facility for International and Domestic Storage and Logistics

SHANGHAI, Feb. 27, 2013 /PRNewswire/ -- China Logistics Group, Inc. (OTC QB: CHLO), an international freight forwarder and logistics management company, announced today that management has begun to explore plans to establish its own warehouse facility for international and domestic storage and logistics.  The company believes this strategy would serve to complement its current international freight forwarding, logistics management, and trucking services. 

The Company is considering plans to purchase or lease land use rights to an 80,000 square meter parcel of land in Dafeng City in Jiangsu Province for the warehouse operation which would serve as a storage hub to service this growing port city. Dafeng port is the only deep-water port in the central Jiangsu coast making it an ideal location for this type of operation.  Management is evaluating plans to build 40,000 square meters of warehouse space featuring high-bay storage, optional temperature-controlled space, sprinkler systems, drive-in doors, and specialty equipment. Management will explore a number of alternatives to finance the project should the company decide to move forward including direct loans, joint ventures and government incentive programs.

Danny Chen, Chairman and CEO of China Logistics Group, commented "As we continue to look to build our capabilities for the future, the strategy of providing our own warehouse as a center of storage, distribution and transfer at key locations is an important goal for China Logistics Group.  By providing proprietary storage, along with transportation and logistics management, we can add substantial value for our clients through a full turnkey solution.  We are evaluating this project because it is adjacent to our trucking transportation headquarters, enabling easy and efficient transportation options for domestic distribution as well as to the port. We would also have the ability to use the services of our transportation partner's network out of this location to enable us to seamlessly move goods from this location to any point in China. We intend to fully explore all aspects of this opportunity as we believe it could serve as a model for us to expand in other locations and provide substantial future growth."

About China Logistics Group, Inc.

China Logistics Group, Inc. (OTCQB: CHLO) is a U.S. company doing business in China through its subsidiary Shandong Jiajia International Freight & Forwarding Co., Ltd. (Shandong Jiajia). Established in 1999; Shandong Jiajia is an international freight forwarder and logistics manager located in China. Shandong Jiajia acts as an agent for international freight and shipping companies. It sells cargo space and arranges land, maritime, and air international transportation for clients seeking primarily to export goods from China. For more information please visit http://www.chinalogisticsinc.com.

Safe Harbor Statement

China Logistics Group, Inc. is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our ability to acquire land use rights and construct, operate and finance a warehouse operation and our expectations regarding client acceptance of our proposed warehouse operations and our future growth, and other risk factors impacting our company, some of which may be beyond our control.  We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

Contact:

Dore Perler
U.S. Representative
954-232-5363
[email protected]

SOURCE China Logistics Group, Inc.