Global-Tech Advanced Innovations Announces Continued Profitability For Third Quarter Of Fiscal 2012

Mr. Sham continued, “As previously announced, we are nearing completion of our exit from the home appliance business and, with the cooperation from our customers, were able to manufacture additional inventory during the transitional period to ensure a smooth phase out process for both the Company and its customers. As stated above, the increase in purchase orders from customers seeking to increase inventory positively impacted our financial results for this quarter.”

Mr. Sham concluded, “Our assets, particularly our liquid resources, continue to increase and, as of December 31, 2011, on a per share basis, far exceed the current trading price of the Company’s stock. We believe we can use resources previously dedicated to the home appliance segment more effectively by reallocating these resources and the efforts of the Company’s management and employees towards business opportunities that we believe will provide better margins and positive returns on investment.”

Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) and camera modules (CCMs). The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in North America, Europe, and other countries throughout the world.

Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," “should,” "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company’s customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China’s trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.

GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts expressed in thousands of United States dollars, except per share data)
		Three Months Ended December 31,								Nine Months Ended December 31,
		2011				2010				2011				2010
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Net sales		$	44,221			$	24,404			$	103,122			$	75,190
Cost of goods sold			(36,810	)			(22,054	)			(89,275	)			(66,583	)
Gross profit			7,411				2,350				13,847				8,607
Selling, general and administrative expenses			(4,113	)			(3,851	)			(11,612	)			(11,778	)
Other operating income (expense)			-				1				29				1,114
Operating income (loss)			3,298				(1,500	)			2,264				(2,057	)
Interest expense			(8	)			(103	)			(141	)			(200	)
Interest income			57				137				315				370
Other income, net			134				97				742				591
Income (loss) from operations before income taxes			3,481				(1,369	)			3,180				(1,296	)
Provision for income taxes			(147	)			(82	)			(280	)			(253	)
Net income (loss)			3,334				(1,451	)			2,900				(1,549	)
Net income (loss) attributable to non-controlling interests			(16	)			-				36				-
Net income (loss) attributable to shareholders		$	3,318			$	(1,451	)		$	2,936			$	(1,549	)
Basic and diluted earnings (loss) per common share		$	1.09			$	(0.48	)		$	0.97			$	(0.51	)
Basic and diluted weighted average number of shares outstanding			3,039				3,039				3,039				3,039

GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United States dollars)
		December 31, 2011				March 31, 2011
		(unaudited)				(audited)
ASSETS
Current assets:
Cash and cash equivalents		$	35,420			$	19,205
Time deposits			-				1,534
Restricted cash			2,876				19,461
Available-for-sale investments			9,005				7
Accounts and bills receivable, net			36,033				35,632
Inventories			8,615				10,849
Prepaid expenses			138				282
Deposits and other assets			1,196				1,712
Legal claims receivable			-				16
Amount due from a related party			20				29
Amount due from a jointly-controlled entity			-				14
Total current assets			93,303				88,741
Interests in jointly-controlled entities			-				-
Property, plant and equipment, net			22,776				25,013
Land use rights, net			3,112				3,061
Deposits paid for purchase of property, plant and equipment			20				112
Available for sales investments			2,998				3,009
Total assets		$	122,209			$	119,936
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank loans			4,000				12,585
Accounts payable			14,268				10,353
Bills payable			2,233				1,279
Temporary receipts			640				821
Accrued salaries, allowances and other employee benefits			6,122				5,608
Accrual for loss contingencies			-				31
Other accrued liabilities			7,686				7,576
Income tax payable			5,350				5,318
Total current liabilities			40,299				43,571
Deferred tax liabilities			28				28
Total liabilities			40,327				43,599
Shareholders' equity:
Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,229,314 shares issued as of December 31 and March 31, 2011			129				129
Additional paid-in capital			84,778				84,752
Accumulated deficit			(8,165	)			(11,101	)
Accumulated other comprehensive income			10,013				7,395
Non-controlling interests			(210	)			(175	)
Less: Treasury stock, at cost, 189,587 shares as of December 31 and March 31, 2011			(4,663	)			(4,663	)
Total shareholders’ equity			81,882				76,337
Total liabilities and shareholders' equity		$	122,209			$	119,936

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