Regal Group, Inc. Enters Letter Of Intent With A RFID Technology Company In China

Phoenix, AZ - (Marketwire) - Regal Group, Inc. (OTCBB: RGLG) announced that it has entered into a Letter of Intent with UHF Logistics Ltd. ("UHF"), whose operating subsidiaries are leading developers of RFID (Radio Frequency Identification) solutions for supply chain applications, parkade management, the pig breeding industry, and anti-theft and secured access applications in China.

Under the terms of the Letter of Intent, Regal will undertake a share exchange agreement to acquire 100% of the equity of UHF, for approximately 35% of the equity of Regal, subject to confirmatory due diligence.

Regal is keen to establish a dominant position in the fast-growing RFID industry in China by acquiring the equity of UHF. UHF specializes in the development, production, and sales of RFID UHF (ultrahigh frequency) hardware, including UHF readers, antenna and tags. The company owns intellectual property rights to its next generation RFID technology platform and its RFID products are designed for a broad range of applications that span personal and property safety and security management, e-ticketing management, tracking in animal breeding, pharmaceutical product fraud prevention, and warehouse/inventory control.

"Last month we announced our intent to create new value for our shareholders in 2010 by acquiring new businesses in the technology, automotive or pharmaceutical industries. We believe we've found the perfect fit with UHF," said Regal's President, Eric Wildstein. "The combination of an improving global economy with renewed focus on operational efficiencies bodes well for Regal with our potential acquisition of an emerging company in the RFID industry. We anticipate that the Chinese RFID market will continue to see consistent, gradual growth in the coming years due to the efforts of the Chinese government to encourage its expansion."

The completion of the proposed transaction is subject to the entry by both parties into final definitive transaction agreements and the satisfaction of the terms and conditions to be set forth therein, the completion of all necessary legal, financial and technical due diligence investigations by both parties, and receipt of necessary consents and approvals, including applicable Chinese regulatory approvals. Mr. Zao Huang, a partner of Guang He Law Firm in China, is being retained by Regal to oversee matters relating to legal due diligence of UHF and Chinese regulatory compliance issues. Execution of definitive transaction documents is expected to occur during the second quarter of 2010. There can be no assurance that the proposed transaction will be completed as proposed or at all.

Mr. Sammul Su, founder of UHF Logistics' operating subsidiaries in China, commented: "China's RFID market will grow rapidly as government agencies and mainstream commercial enterprises seek the efficacies of upgraded management tools and performance protocols, and enhanced by increased government policy initiatives guarding its adoption, through the across-the-board industry adoption of RFID applications in China. With ongoing enhancements to our leading RFID technology platform in China and this possibility of bringing in new foreign management expertise and capital to UHF, we will be able to build a comprehensive and sustainable sales and marketing strategy to significantly monetize our technical expertise in this competitive market."

China RFID Industry Outlook
According to IDTechEx, the global RFID market achieved rapid growth in 2007, and total market value reached US$ 4.96 billion. Spending on RFID in East Asia was approximately US$2.7 billion in 2007, of which US$1.9 billion was spent in China due to the peak delivery of national identification cards in China prior to the 2008 Olympics.

In 2009, the RFID market grew to $5.56 billion, having almost tripled in five years and up from US$5.25 billion in 2008. This includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors. The majority of this spending is on RFID cards and their associated services -- totaling US$2.99 billion. The market for RFID is growing as well as recession-proof and a large amount of this value is due to government-led RFID schemes, such as those for transportation, national ID (contactless cards and passports), military and animal tagging. The largest database of RFID projects in the world is the IDTechEx RFID Knowledgebase which currently stands at 3900 projects in 111 countries. China and the USA spend by far the most money on RFID and China will soon overtake the UK in number of projects.

Within the RFID industry, a major part of the growth has come from existing applications such as security/access control, automobile immobilization, animal tracking and toll collection. However, emerging applications in security-based solutions, contactless payments, and supply chain management are in late testing stages and are expected to present significant new market opportunities. In particular, use of RFID technology in conjunction with contactless payment cards and Wi-Fi has emerged as a substantial opportunity for RFID vendors.

In November 2009, Primer Wen Jiabao of China emphasized his country's focus on the key technology of "the Internet of Things and Sensor Network" and during September 2009, RFID was listed in the "Direction of Investment for Reformation and Technical Progress of Electronic Information Industry" by the National Development and Reform Commission of China. It is anticipated that the Chinese RFID market will continue to grow rapidly in the years to come in light of encouragement sustained by the Chinese Central Government.

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About Regal Group, Inc.
Regal Group, Inc. (formerly, Regal Life Concepts, Inc.) is a publicly traded company with headquarters in Phoenix, Arizona. Regal is strategically positioning itself in key industry sectors in China, including the wine industry where Regal has made a strategic investment in AWA Wine, and is investigating further opportunities in Asia. Regal trades on the NASDAQ OTC BB under the ticker symbol: RGLG.

About UHF Logistics Ltd.
UHF is a HK-incorporated holding company, which through its wholly owned Chinese operating subsidiaries, is focused on the development, marketing and implementation of UHF RFID products and solutions in China since 2006.

Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that Regal can identify and successfully negotiate business prospects in Asia, and that the Company can successfully operate such prospects. Actual results may differ materially from those currently anticipated due to a number of factors and risks beyond the reasonable control of the Company. Further, the completion of the proposed transaction is subject to a number of risks, which include, among others, the corporate disclosure, governance and regulatory requirements of the Peoples' Republic of China (the "PRC"), and PRC regulations relating to, among others, cross-border mergers and acquisitions, product liability and currency exchange rates. Even if the proposed transaction is completed, which cannot be guaranteed, anticipated synergies or other intended benefits of the transaction may not be realized, and the prospects of the combined entity will remain subject to all the general risks associated with the RFID industry, the public securities markets and risks related to doing business in China, such as the PRC's economic, political and social environment, and matters relating to PRC taxes, repatriation of profit and currency conversion, acquisition and appropriation of land use rights, foreign investments, permits and business licenses, employment contracts, government intervention, shareholders' rights and enforcement of judgments, as well as the developing PRC legal system. The Company cautions that the foregoing list of material factors is not exhaustive.

When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

SOURCE: Regal Group, Inc.