DBUB Group Inc. (fka DBUB)

[sweet crude]

Ludlow update on CHCG

Ludlow China Downgrades China 3C Group to a C Rating

Last Updated: Sept. 12, 2007 - 10:49am EST

NEW YORK-- Sept. 12, 2007 --New York based Ludlow China downgraded their coverage on China 3C Group (OTC Bulletin Board: CHCG), a leading retail chain operating over 800 independent stores in Eastern China, from a B+ to C rating.


COVERAGE SUMMARY

Ludlow China downgraded China 3C Group from a B+ to C rating based on failure of their financing offering, and corporate subsidiary structure issues within China. On Sept. 11, 2007, the company announced in an 8K filing with the SEC that financing for $11.7 million had fell through, and that the company was restructuring its corporate subsidiary ownership equity stakes. The failure of $11.7 million in financing is not as important as the companies ownership stakes within China, and should be taken with caution.

Ludlow China feels the uncertainty of what CHCG does and does not own provides for additional doubt in the current market, and would recommend a 'caution' on the company short-term until additional transparency can be provided. For this reason, Ludlow China is currently downgrading CHCG to a C rating, and issuing them a short-term bearish sentiment.


http://www.ludlowchina.com/reports/index.html