Guangzhou Global Telecom Obtains Branch Business License in the City of Zhengzhou, China

Guangzhou Global Telecom Obtains Branch Business License in the City of Zhengzhou, China

May 31, 2007

    GUANGZHOU, China, May 31 /Xinhua-PRNewswire/ --
Guangzhou Global Telecom
Inc. (OTC Bulletin Board: GZGT), a mobile phone handset and
pre-paid calling
card distributor and mobile handset value-added services
provider in the PRC,
announced that the company has obtained a branch business
license in
Zhengzhou, the capital of the Henan province in China. 
This branch office
will operate in the Jinshui District of Zhengzhou.

    According to published statistics, the number of mobile
phone users in
Zhengzhou was approximately 4,527,000 at end of September
2006, roughly 63% of
total population of the city.  The mobile users increased
by 1,010,000 during
the nine months ended September 2006, which represents a
30% increase for year
to year comparison if projected to the whole year of 2006. 
According to
statistics, the coverage of mobile users in Zhengzhou is
only 63%, compared to
93% in other major cities of China.  Accordingly, the
company believes that it
has significant room to develop the additional business in
Zhengzhou.

    In addition, the company is planning to work with the
main telecom
operators in Zhengzhou to achieve quick expansion
objective.  The company is
also trying to co-operate or merge with local distributors
or retailers to
maximize its distribution network.

    Setting up Zhengzhou branch will allow the company to
expand from
Guangzhou into other cities and provinces of China.  During
2007, the company
expects to set up more branches and retail shops in China
to enhance its
distribution network.  With such retailer shops located in
different cities
within China, we can understand, with more precision, the
market response for
each product and service allowing the company to correctly
adjust its business
model, ensuring customer satisfaction.  Currently, most of
the company's
revenue is generated from Guangzhou and only one brand is
distributing its
products through our network into the whole China region. 
With the network,
we can persuade more handsets manufacturers to deliver
products through our
network.  Furthermore, by developing a larger
infrastructure, the company will
be able to sell more value added services which will
increase company margins
and give us a competitive advantage over smaller companies
in our market.

    About Guangzhou Global Telecom

    Guangzhou Global Telecom Limited Company is a national
mobile phone
handset and pre-paid calling card distributor and provider
of mobile handset
value-added services. Maintaining cooperative relationships
with China
Telecom, China Mobile and China Unicom, the Company seeks
to become the
largest sales and distribution center of mobile phones,
mobile phone parts and
prepaid mobile phone cards in China,. GTL plans to
introduce new software and
services through an expanded network of regional and
neighborhood service
centers, shops and virtual stores. For details, please
visit our website at
www.guangzhouglobaltelecom.com

    Safe Harbor Statement

    Certain of the statements made in the press release
constitute forward-
looking statements within the meaning of the Private
Securities Litigation
Reform Act of 1995. These statements can be identified by
the use of forward-
looking terminology such as "believe,"
"expect," "may," "will,"
"should,"
"project," "plan," "seek,"
"intend," or "anticipate" or the
negative thereof
or comparable terminology. Such statements typically
involve risks and
uncertainties and may include financial projections or
information regarding
our future plans, objectives or performance. Actual results
could differ
materially from the expectations reflected in such
forward-looking statements
as a result of a variety of factors, including the risks
associated with the
effect of changing economic conditions in The People's
Republic of China,
variations in cash flow, reliance on collaborative retail
partners and on new
product development, variations in new product development,
risks associated
with rapid technological change, and the potential of
introduced or undetected
flaws and defects in products, and other risk factors
detailed in reports
filed with the Securities and Exchange Commission from time
to time.


    CONTACT:  

     Steven Bigley, 
     Aero Financial, Inc.,
     [phone] 
     [e-mail]