On May 14, 2007, the Company released first quarter earnings for fiscal 2007. For the three months ending September 30, 2006, the Company reported $6.9 million in revenue, up 811% from $764,504 for the comparable quarter in fiscal year 2006. The increase is attributed to a rising customer base as well as the acquisition of Speedy Dragon and the addition of air cargo transportation and hotel booking services businesses during the quarter.

Net income was $653,610, or $0.02 per share, for the first quarter '07, up from $460,329 a year ago. Net income was adversely impacted by the second half of the company's stock compensation charge reported last fiscal year. This represents Universal's last expense in connection with this plan.

VALUATION RATING

Universal Travel Group's recent first quarter net income showed continued growth, with revenue showing a sharp increase from $764,504 in 2006 to $6.9 million in 2007. The potential acquisition of Shanghai Lanbao Travel Service Co., Ltd. may also provide for a strong boast to UTVG's revenue and net income targets going forward.

With the company now integrating Speedy Dragon and their new hotel booking and air cargo transportation business units, this confirms that Universal Travel Group is executing their business model. Thus, Ludlow China is issuing Universal Travel Group a rating of B-, and upgrading the company's price target from $1.80 to $3.25, near term.

Ludlow China began coverage on UTVG in October 2006, at a price of $0.55 a share.


About Universal Travel Group

Universal Travel Group, through its wholly-owned subsidiary, Shenzhen Yu Zhi Lu Aviation Service Company Ltd., is engaged in providing reservation, booking, and domestic and international travel and tourism services throughout China. The company's core services include booking services for air tickets, hotels, and restaurants, tour routing for customers and an air cargo division. The company's goal is to become China's leading travel services provider. For more information, visit http://www.chutg.com.

About Ludlow China Ventures

Based in New York City, Ludlow China Ventures is a venture capital and research firm with a specific focus on the Chinese market. Ludlow China owns and operates the Ludlow China Indices, which tracks a wide basket of US traded large and small cap Chinese stocks. www.ludlowchina.com

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Contact:
    
Ludlow China Ventures
Gerry Salazar
Phone: (718) 855-8451

Universal Travel Group
Jacalyn Guo
Investor Relations
(310) 443-4151
jacalyn@chutg.com 

OTC Financial Network
Peter Clark
781-444-6100, x629
peter@otcfn.com 
    
http://www.otcfn.com/utvg

Disclaimer:

This is NOT a solicitation to Buy or Sell any security, but rather is for research purposes only. Content contained herein includes facts, views, opinions and recommendations of individuals and organizations deemed of interest. Ludlow China Ventures does not guarantee the accuracy, completeness or timeliness of, or otherwise endorse these views, opinions or recommendations, or give investment advice. Ludlow China Ventures, its affiliates, or directors, may or may not hold a position in the above security from time to time, and investors are encourage to consider this as a possible conflict of interest when reviewing this information. In Compliance with SEC Rule 17B Ludlow China Ventures was compensated three thousand five hundred dollars  for the distribution of this research material, and should be considered a possible conflict of interest when reviewing this report and information. 

Safe Harbor Statements:

This research report includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

(NOTE: Ludlow China Ventures is NOT a broker-dealer, and does not offer buy or sell recommendations. Ludlow Capital's reports are strictly independent investment opinions, and does not hold any positions in the companies we cover unless otherwise clearly stated in our report. Rather, we offer our subscribers a perspective on each investment from our years of experience in dealing with small and micro-cap companies. We update our investment opinions and commentaries throughout the year, and encourage any interested investors to subscribe to our yearly membership to receive regular updates on these companies.)