Cogo Announces Signing of Agreement for sale of certain Subsidiaries to Chairman and CEO Jeffrey Kang

   Cogo Announces Signing of Agreement for sale of certain Subsidiaries to
                        Chairman and CEO Jeffrey Kang

- Buyback Program in Place since September 24th

- Deal Validates Company's Tangible Book Value of Approximately $6.00 per
Share

PR Newswire

SHENZHEN, China, Oct. 23, 2012

SHENZHEN, China, Oct. 23, 2012 /PRNewswire/ -- Cogo Group, Inc. (NASDAQ:
COGO), one of the leading gateways for global semiconductor companies to
access the industrial and technology markets in China, today announced that it
had entered into a definitive agreement for the sale of certain subsidiaries
to its Chairman and CEO Jeffrey Kang. The main terms of the deal are
unchanged from the Company's press release on September 24, 2012.

On September 24, 2012, Cogo began executing a stock buyback program to
repurchase its shares on the open market pursuant to a 10b5-1 plan. Given
that Cogo's shares trade at approximately 35% of its Tangible Book Value
("TBV") of approximately $6 per share, as reported at the end of the second
quarter of 2012, the Company believes that a buyback program is a prudent use
of cash.

Mr. Kang commented, "The signing of a definitive agreement regarding my
proposal to purchase certain subsidiaries for $78 million brings us one step
closer towards maximizing value for shareholders of Cogo. We believe this
deal validates the financial assets of Cogo that are currently being
significantly discounted by the financial markets and we believe that the
ongoing share buybacks are accretive for our shareholders."

About Cogo Group, Inc.:

Cogo Group, Inc. (Nasdaq: COGO) is one of the leading gateways for global
semiconductor companies to access the rapidly growing Industrial and
Technology sectors in China. Through its unique business-to-business services
platform, Cogo designs customized embedded solutions using technology from
suppliers including Intel, Broadcom, Xilinx, SanDisk, Freescale, Atmel and
others for a customer base of 2,100 Chinese OEMs/ODMs. Cogo's customer list
includes approximately 100 blue-chip companies, including ZTE, BYD and NARI,
as well as 2,000 Small and Medium Enterprises (SMEs). The Company serves a
broad list of rapidly growing end-markets in China, including 3G Smart phones,
Tablets, Automotives, High-Speed Railway, Smart Meter/Smart Grid, Healthcare
and High Definition Television ("HDTV").

For further information:
Investor Relations
www.cogo.com.cn/investorinfo.html
communications@cogo.com.cn
H.K.:  +852 2730 1518
U.S.:  +1 917-519-6994
Fax:  +86 755 2674 3522

Safe Harbor Statement:

This press release includes certain statements that are not descriptions of
historical facts, but are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. These forward-looking statements may include
statements about our proposed discussions related to our business or growth
strategy such as growth in digital media, telecommunications and industrial
applications businesses, as well as our potential acquisitions which are
subject to change. Such information is based upon expectations of our
management that were reasonable when made, but may prove to be incorrect. All
such assumptions are inherently subject to uncertainties and contingencies
beyond our control and upon assumptions with respect to future business
decisions, which are subject to change. For further descriptions of other
risks and uncertainties, see our most recent Annual Report filed with the
Securities and Exchange Commission (SEC) on Form 20-F, and our subsequent SEC
filings. Copies of filings made with the SEC are available through the SEC's
electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.

SOURCE Cogo Group, Inc.

Website: http://www.cogo.com.cn/investorinfo.html
 
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