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China Logistics Group Launches Domestic Trucking Services Operation in China

SHANGHAI, CHINA--(Marketwire - Jan 14, 2013) - China Logistics Group, Inc. ( OTCQB : CHLO ), an international freight forwarder and logistics management company, announced today that it has partnered with a major domestic trucking company to launch China Logistics' own domestic trucking services to select locations and customers in China.

China Logistics will initially offer the services through a small fleet of trucks leased by the company from the major domestic trucking company which will be dispatched from its Shanghai headquarters. The service will first be offered to clients in geographic areas that are in close proximity to a small number of international freight forwarding ports serviced by the Company. Over time China Logistics intends to build its fleet and expand routes to a number of ports along the eastern seaboard of China. Management believes this strategy will enable the company to better service key international freight forwarding customers while expanding its gross margins through the integration of land and ocean based logistical operations. 

Danny Chen, Chairman and CEO of China Logistics Group, commented, "We are very excited to launch this new service on a limited basis and look forward to a progressive rollout of trucking services to compliment our freight forwarding business. We believe that trucking services is a critical component to the growth of our business as we offer our clients a turnkey shipping solution from their factory to the port of loading giving them the certainty of knowing that we are not relying on a third party to ensure delivery. Additionally, by combining this service with ocean freight forwarding we believe we can reduce expenses and expand margins to significantly enhance our future bottom line results as we look to build the value of our company for its stockholders."

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 operate trucking routes, improve our gross margins, reduce expenses and our customer's acceptance of our proposed domestic trucking services 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.