CLSTE Cellstar (MM)

CellStar Announces Key Management Changes and Establishes New CellStar Asia Board - Terry S. Parker resigns from Board of CellStar Corporation and as Executive Chairman; assumes Chairman role for new Asia Board - Robert A. Kaiser named to Board of CellStar Corporation and named CEO and Chairman of the Board; assumes responsibility for Asia Pacific Region - James Chan named CFO of Asia Pacific Region CARROLLTON, Texas, May 2 /PRNewswire-FirstCall/ -- CellStar Corporation (NASDAQ:CLSTE), a value-added wireless logistics and distribution services leader, today announced key management changes primarily related to its Asia Pacific operations and the establishment of a new board of directors for CellStar International Corporation/Asia, a Delaware subsidiary which acts as the U.S. holding company for the Asia Pacific operations. The new Asia Board will be responsible for setting the direction and overseeing the execution of the Company's China strategy, and is a direct response to the recent decline in financial performance of the Company's operations in China. The Asia Board will report directly to Robert Kaiser, who was named to the Board of CellStar Corporation to fill the vacancy created by the resignation of Terry Parker. Mr. Kaiser will serve as Chairman of CellStar Corporation's Board of Directors. Kaiser also assumes responsibility for the Asia Pacific operations. In April of 2004, Parker assumed the role of Executive Chairman but retained responsibility for the Company's Asia Pacific operations pending the completion of the proposed Greater China IPO. In September 2004, the Company announced that it would not proceed with the IPO due to changes in the economy and the handset industry during the first half of 2004 and the resulting negative impact of those changes on its revenues and profits. Mr. Parker will serve as Chairman of the Asia Board. As part of his duties as Chairman, Parker will move to Shanghai for an indefinite period of time to assist the Asia management team on a full time basis. He will continue to work closely with Mr. A.S. Horng, the head of the Asia Pacific Region, and his team, assisting them with the implementation of the China strategy. Mr. Horng will report directly to the Asia Board. In addition to Messrs. Kaiser, Parker and Horng, the Asia Board will include CellStar Corporation Board members Mr. John T. Kamm and Dr. Da Hsuan Feng, the Company's newest Board member. Both of these individuals speak several Chinese languages including Mandarin, Cantonese and Shanghainese, and bring a wealth of cultural knowledge as well as Chinese industry, economic, and market experience that will be valuable assets to the Company as it restructures its business in the region. Mr. Raymond L. Durham, Senior Vice President and CFO will also serve on the Asia Board. The Company also announced that Mr. James Chan has been named CFO of the Asia Pacific Region. Mr. Chan, who is multilingual and speaks Mandarin & Cantonese, joins CellStar Asia from Glanbia PLC, a manufacturer of dairy products in the U.S. and Europe, where he served as Interim CFO in Shanghai, China and was responsible for opening the company's Asia Pacific sales office. Prior to that, Mr. Chan was Vice President of Finance for Ocular LCD, Inc., a U.S. manufacturer with an office in Hong Kong and factories in China. Mr. Chan also served as Vice President, Finance for Promotional Partners Worldwide where he spearheaded the restructuring of the North America office. Earlier in his career, Chan held various senior level finance and accounting positions. About CellStar Corporation CellStar Corporation is a leading global provider of value added logistics and distribution services to the wireless communications industry, with operations in the North American, Latin American and Asia-Pacific Regions. CellStar facilitates the effective and efficient distribution of handsets, related accessories and other wireless products from leading manufacturers to network operators, agents, resellers, dealers and retailers. CellStar also provides activation services in some of its markets that generate new subscribers for its wireless carriers. For the year ended November 30, 2003, the Company reported revenues of $1.8 billion. Additional information about CellStar may be found on its website at http://www.cellstar.com/ . This news release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. A variety of risk factors, including the Company's ability to implement its business strategies, to maintain its channels of distribution, continue to secure an adequate supply of competitive products on a timely basis and on commercially reasonable terms, improve its operating margins, secure adequate financial resources, maintain an adequate system of internal control, comply with debt covenants, and continually turn its inventories and accounts receivable, as well as changes in foreign laws, regulations and tariffs, new technologies, system implementation difficulties, competition, handset shortages or overages, terrorist acts, a decline in consumer confidence and continued economic weakness in the U.S. and other countries in which the Company does business and other risk factors, are discussed in the Company's Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Any one, or a combination of these risk factors could cause CellStar's actual results to vary materially from anticipated results or other expectations expressed in the Company's forward-looking statements. DATASOURCE: CellStar Corporation CONTACT: Sherrian Gunn of CellStar Corporation, +1-972-466-5031 Web site: http://www.cellstar.com/

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