**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q/A**

**x      QUARTERLY REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE**

**ACT      OF 1934**

**FOR      THE QUARTERLY PERIOD ENDED MARCH 31, 2008.**

**o      TRANSITION REPORT UNDER      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT**

**OF      1934**

**FOR      THE TRANSITION FROM _______ TO ________.**

*COMMISSION      FILE NUMBER 000-27159*

**SUNWAY      GLOBAL, INC.**

| Nevada                                         | 26-1650042                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

|  Large                accelerated filer o | Accelerated                filer o         |
|------------------------------------------------|--------------------------------------------|
|                                           |                                       |
| Non-accelerated                filer o         | Smaller                reporting company T |

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS**

**DURING      THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

----

**TABLE      OF CONTENTS **

|                    |                                                                                                                     |   | Page         |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------|
|                    | PART                I                                                                                                    |   |         |
| Item                1.  | Financial                Statements                                                                                      |   | 1            |
| Item                2.  | Management’s                Discussion and Analysis of Financial Condition and Results of                Operation |   | 35           |
| Item                3.  | Quantitative                and Qualitative Disclosures About Market Risk                                                |   | 39           |
| Item                4T  | Controls                and Procedures                                                                                   |   | 39           |
|                    | PART                II                                                                                                   |   |    |
| Item                1.  | Legal                Proceedings                                                                                         |   | 40           |
| Item                1A. | Risk                Factors                                                                                              |   | 40           |
| Item                2.  | Unregistered                Sales of Equity Securities and Use of Proceeds                                               |   | 40           |
| Item                3.  | Defaults                Upon Senior Securities                                                                           |   | 40           |
| Item                4.  | Submission                of Matters to a Vote of Security Holders                                                       |   | 40           |
| Item                5.  | Other                Information                                                                                         |   | 40           |
| Item                6.  | Exhibits                                                                                                                 |   | 40           |
|  SIGNATURES        |                                                                                                                     | 41     |

**EXPLANATORY      NOTE:**

|   | 1. | Improper                use of exchange rates of shareholders’ equity items. In specific,                additional paid-in capital, statutory reserves, and retained earnings                were                overstated by $253,500, $37,309 and $128,861 respectively, and accumulated                other comprehensive income was understated by                $419,670; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Cash                and cash equivalents and travel advances to directors were overstated                by                $8,340 and $832 respectively; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Interest                expenses were understated by                $38,596. |
|--------|----|------------------------------------------------------------------------------|

----

**PART      I**

**FINANCIAL      INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS **

| CONTENTS                                                                                             |   | PAGES                                |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------------|
|                                                                                                 |   |                                 |
| CONSOLIDATED                BALANCE SHEETS                                                           |   | 2                -                3  |
|                                                                                                 |   |                                 |
| CONSOLIDATED                      STATEMENTS OF INCOME AND COMPREHENSIVE                      INCOME |   | 4                                    |
|                                                                                                 |   |                                 |
| CONSOLIDATED                STATEMENTS OF STOCKHOLDERS’ EQUITY                                 |   | 5                                    |
|                                                                                                 |   |                                 |
| CONSOLIDATED                STATEMENTS OF CASH FLOWS                                                 |   | 6 –                7      |
|                                                                                                 |   |                                 |
| NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS                                            |   | 8                -                34 |

----

| **SUNWAY                  GLOBAL INC.**                         |
|-----------------------------------------------------------------|
|                                                            |
| **CONSOLIDATED                  BALANCE SHEETS**                |
| **AS                  AT MARCH 31, 2008 AND DECEMBER 31, 2007** |
| **(Stated                  in US Dollars)**                     |

|                                                          |   | Notes  |   | March                  31, 2008 |   | December                  31, 2007 |   |
|---------------------------------------------------------------|--------|--------|--------|---------------------------------|--------|------------------------------------|--------|
| **ASSETS**                                                    |   |   |   | (Unaudited)                     |   | (Audited)                          |   |
| Current                  assets                               |   |   |   |                            |   |                               |   |
| Cash                  and cash equivalents                    |   |   |   |                            | $      | 6,456,669                          |   | $ | 5,820,100 |   |
| Trade                  receivables, net                       |   |   | 6      |                            |   | 2,208,760                          |   |   | 1,525,201 |   |
| Inventories                                                   |   |   | 9      |                            |   | 876,207                            |   |   | 766,933 |   |
| Advances                  to suppliers                        |   |   |   |                            |   | 421,542                            |   |   | 1,331,159 |   |
| Prepayments                                                   |   |   |   |                            |   | 595,282                            |   |   | 125,333 |   |
| Tender                  deposits                              |   |   |   |                            |   | -                                  |   |   | 131,013 |   |
| Travel                  advances to directors                 |   |   | 7      |                            |   | 39,137                             |   |   | 30,824 |   |
| Advances                  to employees                        |   |   | 8      |                            |   | 398,153                            |   |   | 548,364 |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
| Total                  current assets                         |   |   |   |                            | $      | 10,995,750                         |   | $ | 10,278,927 |   |
| Amount                  due from a related company            |   |   | 4      |                            |   | 830                                |   |   | 585,678 |   |
| Restricted                  cash                              |   |   |   |                            |   | 467,954                            |   |   | 491,049 |   |
| Amount                  due from a director                   |   |   | 5      |                            |   | 726,133                            |   |   | 1,028,474 |   |
| Deposit                  for acquisition of computer software |   |   |   |                            |   | 1,281,650                          |   |   | - |   |
| Property,                  plant and equipment, net           |   |   | 10     |                            |   | 5,396,525                          |   |   | 4,449,619 |   |
| Intangible                  assets, net                       |   |   | 11     |                            |   | 7,021,134                          |   |   | 6,933,491 |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
| **TOTAL                  ASSETS**                             |   |   |   |                            | $      | 25,889,976                         |   | $ | 23,767,238 |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
| **LIABILITIES                  AND**                          |   |   |   |                            |   |                               |   |   |   |   |
| **STOCKHOLDERS’                  EQUITY**               |   |   |   |                            |   |                               |   |   |   |   |
| Current                  liabilities                          |   |   |   |                            |   |                               |   |   |   |   |
| Accounts                  payable                             |   |   |   |                            | $      | 39,823                             |   | $ | 245,917 |   |
| Income                  tax payable                           |   |   |   |                            |   | 282,820                            |   |   | 157,877 |   |
| Turnover                  and other taxes                     |   |   |   |                            |   | 235,056                            |   |   | 143,857 |   |
| Expected                  warranty expenses                   |   |   | 12     |                            |   | 57,651                             |   |   | 55,351 |   |
| Customers                  deposits                           |   |   |   |                            |   | -                                  |   |   | 208,274 |   |
| Accrued                  liabilities                          |   |   |   |                            |   | 374,037                            |   |   | 323,464 |   |
| Other                  payables                               |   |   |   |                            |   | 30,367                             |   |   | 35,984 |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
| Total                  current liabilities                    |   |   |   |                            | $      | 1,019,754                          |   | $ | 1,170,724 |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
|                                                          |   |   |   |                            |   |                               |   |   |   |   |
| **TOTAL                  LIABILITIES**                        |   |   |   |                            | $      | 1,019,754                          |   | $ | 1,170,724 |   |

----

| **SUNWAY                  GLOBAL INC.**                         |
|-----------------------------------------------------------------|
|                                                            |
| **CONSOLIDATED                  BALANCE SHEETS (Continued)**    |
| **AS                  AT MARCH 31, 2008 AND DECEMBER 31, 2007** |
| **(Stated                  in US Dollars)**                     |

|                                                      |   | Notes  |   | March                  31, 2008 |   | December                  31, 2007 |   |
|-----------------------------------------------------------|--------|--------|--------|---------------------------------|--------|------------------------------------|--------|
|                                                      |   |   |   | (Unaudited)                     |   | (Audited)                          |   |
| **STOCKHOLDERS’                  EQUITY**           |   |   |   |                            |   |                               |   |
| Series                  A Convertible Preferred           |   |   |   |                            |   |                               |   |
| Stock                  $0.001 par value 400,000 shares    |   |   |   |                            |   |                               |   |
| authorized;                  Nil and 246,176 shares       |   |   |   |                            |   |                               |   |
| issued                  and outstanding at March 31, 2008 |   |   |   |                            |   |                               |   |
| and                  December 31, 2007 respectively       |   |   |   |                            | $      | -                                  |   | $ | 246 |   |
| Series                  B Convertible Preferred           |   |   |   |                            |   |                               |   |   |   |   |
| Stock                  $0.001 par value 400,000           |   |   |   |                            |   |                               |   |   |   |   |
| shares                  authorized; 165,432               |   |   |   |                            |   |                               |   |   |   |   |
| shares                  issued and outstanding            |   |   |   |                            |   |                               |   |   |   |   |
| at                  March 31, 2008 and December 31, 2007  |   |   | 13     |                            |   | 165                                |   |   | 165 |   |
|                                                      |   |   |   |                            |   |                               |   |   |   |   |
| Common                  stock at $0.001 par value         |   |   |   |                            |   |                               |   |   |   |   |
| 100,000,000                  shares authorized;           |   |   |   |                            |   |                               |   |   |   |   |
| 13,935,489                  and 223,658 shares issued and |   |   |   |                            |   |                               |   |   |   |   |
| outstanding                  at March 31, 2008            |   |   |   |                            |   |                               |   |   |   |   |
| and                  December 31, 2007 respectively       |   |   |   |                            |   | 13,935                             |   |   | 224 |   |
| Additional                  paid-in capital               |   |   |   |                            |   | 16,085,868                         |   |   | 16,099,333 |   |
| Statutory                  reserves                       |   |   |   |                            |   | 2,127,978                          |   |   | 2,127,978 |   |
| Retained                  earnings                        |   |   |   |                            |   | 4,525,082                          |   |   | 3,188,280 |   |
| Accumulated                  other comprehensive income   |   |   |   |                            |   | 2,117,194                          |   |   | 1,180,288 |   |
|                                                      |   |   |   |                            |   |                               |   |   |   |   |
|                                                      |   |   |   |                            |   |                               |   |   |   |   |
|                                                      |   |   |   |                            | $      | 24,870,222                         |   | $ | 22,596,514 |   |
|                                                      |   |   |   |                            |   |                               |   |   |   |   |
|                                                      |   |   |   |                            |   |                               |   |   |   |   |
|                                                      |   |   |   |                            |   |                               |   |   |   |   |
| **TOTAL                  LIABILITIES AND**                |   |   |   |                            |   |                               |   |   |   |   |
| **STOCKHOLDERS’                  EQUITY**           |   |   |   |                            | $      | 25,889,976                         |   | $ | 23,767,238 |   |
|                                                      |   |   |   |                            |   |                               |   |   |   |   |

----

| **SUNWAY                  GLOBAL INC.**                                         |
|---------------------------------------------------------------------------------|
|                                                                            |
| **CONSOLIDATED                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME** |
| **FOR                  THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**         |
| **(Stated                  in US Dollars)(Unaudited)**                          |

|                                                                   |   |   |   | Three                  months ended March 31, |   |
|------------------------------------------------------------------------|--------|--------|--------|-----------------------------------------------|--------|
|                                                                   |   |   |   | 2008                                          |   | 2007 |   |
|                                                                   |   | Notes  |   |                                          |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |
| Net                  revenues                                          |   |   | 17     |                                          | $      | 3,563,425 |   | $ | 2,467,228 |   |
| Cost                  of net revenues                                  |   |   | 17     |                                          |   | (1,141,745 | ) |   | (644,247 | ) |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Gross                  profit                                          |   |   |   |                                          | $      | 2,421,680 |   | $ | 1,822,981 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Selling                  expenses                                      |   |   |   |                                          |   | (162,555 | ) |   | (13,580 | ) |
| General                  and administrative expenses                   |   |   |   |                                          |   | (648,924 | ) |   | (387,513 | ) |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Income                  from operation                                 |   |   |   |                                          |   | 1,610,201 |   |   | 1,421,888 |   |
| Interest                  expenses                                     |   |   |   |                                          |   | - |   |   | (3,040 | ) |
| Interest                  income                                  |   |   |   |                                          |   | 143 |   |   | 1,457 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Income                  from continuing activities before income taxes |   |   |   |                                          | $      | 1,610,344 |   | $ | 1,420,305 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Income                  taxes                                          |   |   | 15     |                                          |   | (273,542 | ) |   | (233,274 | ) |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Net                  income                                            |   |   |   |                                          | $      | 1,336,802 |   | $ | 1,187,031 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Foreign                  currency translation                          |   |   |   |                                          |   | 936,906 |   |   | 76,577 |   |
| Unrealized                  gain on investments                        |   |   |   |                                          |   | - |   |   | 246,153 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Comprehensive                  income                                  |   |   |   |                                          | $      | 2,273,708 |   | $ | 1,509,761 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Net                  income per share:                                 |   |   |   |                                          |   |   |   |   |   |   |
| -Basic                                                                 |   |   | 14     |                                          | $      | 0.16 |   | $ | 5.31 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| -Diluted                                                               |   |   | 14     |                                          | $      | 0.06 |   | $ | 5.31 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| Weighted                  average number of common stock               |   |   |   |                                          |   |   |   |   |   |   |
| -Basic                                                                 |   |   | 14     |                                          | $      | 8,360,349 |   | $ | 223,653 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |
| -Diluted                                                               |   |   | 14     |                                          | $      | 22,645,485 |   | $ | 223,653 |   |
|                                                                   |   |   |   |                                          |   |   |   |   |   |   |

----

| **SUNWAY                  GLOBAL INC.**                                          |
|----------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF STOCKHOLDERS’ EQUITY**       |
| **FOR                  THE YEAR ENDED DECEMBER 31, 2007 AND THREE-MONTHS ENDED** |
| **MARCH                  31, 2008**                                              |
| **(Stated                  in US Dollars)(Unaudited)**                           |

|                                                 |   |      |   |      |   |        |   |   |       | Additional |   |      |   |     |       | Accumulated   |   |      |   |
|------------------------------------------------------|--------|-----------|--------|-----------|--------|-------------|--------|--------|------------|------------|--------|-----------|--------|----------|------------|---------------|--------|-----------|--------|
|                                                 |   | Preferred |   | Preferred |   | No.         |   |   |       | paid       |   |      |   |     |       | other         |   |      |   |
|                                                 |   | Series    |   | Series    |   | shares      |   | Common |       | in         |   | Statutory |   | Retained |       | comprehensive |   |      |   |
|                                                 |   | A         |   | B         |   | outstanding |   | stock  |       | capital    |   | reserves  |   | earnings |       | income        |   | Total     |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |
| Balance,                  January 1, 2007            |   | $         | 246    |      | $      | -           |   |   | 221,612    |       | $      | 224       |   | $        | 4,223,165  |          | $      | 1,124,073 |   | $ | 4,844,680 |   | $ | 843,205 |   | $ | 11,035,593 |   |
| Reversal                  of realized gain on        |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| investment                                           |   |      | -      |      |   | -           |   |   | -          |       |   | -         |   |     | -          |          |   | -         |   |   | - |   |   | (423,537 | ) |   | (423,537 | ) |
| Net                  income                          |   |      | -      |      |   | -           |   |   | -          |       |   | -         |   |     | -          |          |   | -         |   |   | 6,047,505 |   |   | - |   |   | 6,047,505 |   |
| Appropriation                  to statutory reserves |   |      | -      |      |   | -           |   |   | -          |       |   | -         |   |     | -          |          |   | 1,003,905 |   |   | (1,003,905 | ) |   | - |   |   | - |   |
| Issuance                  to Vision re: Debentures   |   |      | -      |      |   | -           |   |   | -          |       |   | -         |   |     | 199,200    |          |   | -         |   |   | - |   |   | - |   |   | 199,200 |   |
| Issuance                  of Series B Convertible    |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| Preferred                  Stock                     |   |      | -      |      |   | 165         |   |   | -          |       |   | -         |   |     | 11,676,968 |          |   | -         |   |   | (6,700,000 | ) |   | - |   |   | 4,977,133 |   |
| Foreign                  currency translation        |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| adjustment                                           |   |      | -      |      |   | -           |   |   | -          |       |   | -         |   |     | -          |          |   | -         |   |   | - |   |   | 760,620 |   |   | 760,620 |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31,2007           |   | $         | 246    |      | $      | 165         |   |   | 221,612    |       | $      | 224       |   | $        | 16,099,333 |          | $      | 2,127,978 |   | $ | 3,188,280 |   | $ | 1,180,288 |   | $ | 22,596,514 |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| Balance,                  January 1, 2008            |   | $         | 246    |      | $      | 165         |   |   | 221,612    |       | $      | 224       |   | $        | 16,099,333 |          | $      | 2,127,978 |   | $ | 3,188,280 |   | $ | 1,180,288 |   | $ | 22,596,514 |   |
| Conversion                  of Preferred Series A    |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| into                  Common Stock                   |   |      | (246   | )         |   | -           |   |   | 13,713,877 |       |   | 13,711    |   |     | (13,465    | )             |   | -         |   |   | - |   |   | - |   |   | - |   |
| Net                  income                          |   |      | -      |      |   | -           |   |   | -          |       |   | -         |   |     | -          |          |   | -         |   |   | 1,336,802 |   |   | - |   |   | 1,336,802 |   |
| Foreign                  currency translation        |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| adjustment                                           |   |      | -      |      |   | -           |   |   | -          |       |   | -         |   |     | -          |          |   | -         |   |   | - |   |   | 936,906 |   |   | 936,906 |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |   |   |   |   |   |
| Balance,                  March 31,2008              |   | $         | -      |      | $      | 165         |   |   | 13,935,489 |       | $      | 13,935    |   | $        | 16,085,868 |          | $      | 2,127,978 |   | $ | 4,525,082 |   | $ | 2,117,194 |   | $ | 24,870,222 |   |
|                                                 |   |      |   |      |   |        |   |   |       |       |   |      |   |     |       |          |   |      |   |   |   |   |   |    |   |   |   |   |

----

| **SUNWAY                  GLOBAL INC.**                           |
|-------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**        |
| **FOR                  THE THREE-MONTHS MARCH 31, 2008 AND 2007** |
| **(Stated                  in US Dollars)(Unaudited)**            |

|                                                           |   | Three                  months ended March 31, |       |
|----------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                           |   | 2008                                          |       | 2007 |   |
| Cash                  flows from operating activities          |   |                                          |       |   |   |
| Net                  income                                    |   | $                                             | 1,336,802  |   | $ | 1,187,031 |   |
| Depreciation                                                   |   |                                          | 177,687    |   |   | 227,562 |   |
| Amortization                                                   |   |                                          | 196,280    |   |   | 41,869 |   |
|                                                           |   |                                          |       |   |   |   |   |
| Adjustments                  to reconcile net income           |   |                                          |       |   |   |   |   |
| to                  net cash provided by operating activities: |   |                                          |       |   |   |   |   |
| Trade                  receivables, net                        |   |                                          | (620,159   | ) |   | (694,156 | ) |
| Inventories                                                    |   |                                          | (77,394    | ) |   | (115,467 | ) |
| Advances                  to suppliers                         |   |                                          | 964,951    |   |   | - |   |
| Prepayments                                                    |   |                                          | 383,008    |   |   | (493,761 | ) |
| Travel                  advances to directors                  |   |                                          | (39,137    | ) |   | - |   |
| Advances                  to employees                         |   |                                          | (398,153   | ) |   | - |   |
| Accounts                  payable                              |   |                                          | (214,661   | ) |   | (31,364 | ) |
| Income                  tax payable                            |   |                                          | 118,380    |   |   | - |   |
| Turnover                  and other taxes                      |   |                                          | 85,220     |   |   | 177,708 |   |
| Loans                  from unrelated parties                  |   |                                          | 1,572,360  |   |   | - |   |
| Amount                  due from a director                    |   |                                          | (726,133   | ) |   | - |   |
| Customers                  deposits                            |   |                                          | (216,932   | ) |   | - |   |
| Accrued                  liabilities                           |   |                                          | 37,127     |   |   | - |   |
| Other                  payables                                |   |                                          | (7,113     | ) |   | 57,797 |   |
|                                                           |   |                                          |       |   |   |   |   |
|                                                           |   |                                          |       |   |   |   |   |
| Net                  cash provided by operating activities     |   | $                                             | 2,572,133  |   | $ | 357,219 |   |
|                                                           |   |                                          |       |   |   |   |   |
|                                                           |   |                                          |       |   |   |   |   |
| Cash                  flows from investing activities          |   |                                          |       |   |   |   |   |
| Purchase                  of plant and equipment               |   | $                                             | (939,630   | ) | $ | - |   |
| Restricted                  cash                               |   |                                          | 23,095     |   |   | - |   |
| Deposit                  for acquisition of computer software  |   |                                          | (1,281,650 | ) |   | - |   |
| Disposal                  of plant and equipment               |   |                                          | -          |   |   | 33,645 |   |
|                                                           |   |                                          |       |   |   |   |   |
|                                                           |   |                                          |       |   |   |   |   |
| Net                  cash used in investing activities         |   | $                                             | (2,198,185 | ) | $ | 33,645 |   |
|                                                           |   |                                          |       |   |   |   |   |
|                                                           |   |                                          |       |   |   |   |   |
| Cash                  flows from financing activities          |   | $                                             | -          |   | $ | - |   |

----

| **SUNWAY                  GLOBAL INC.**                                |
|------------------------------------------------------------------------|
|                                                                   |
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS (Continued)** |
| **FOR                  THE THREE-MONTHS MARCH 31, 2008 AND 2007**      |
| **(Stated                  in US Dollars)(Unaudited)**                 |

|                                                         |   | Three                  months ended March 31, |      |
|--------------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                         |   | 2008                                          |      | 2007 |   |
|                                                         |   |                                          |      |   |   |
| Net                  in cash and cash equivalents sourced    |   | $                                             | 373,948   |   | $ | 390,864 |   |
|                                                         |   |                                          |      |   |   |   |   |
| Effect                  of foreign currency translation on   |   |                                          |      |   |   |   |   |
| cash                  and cash equivalents                   |   |                                          | 262,621   |   |   | (49,918 | ) |
|                                                         |   |                                          |      |   |   |   |   |
| Cash                  and cash equivalents-beginning of year |   |                                          | 5,820,100 |   |   | 1,749,048 |   |
|                                                         |   |                                          |      |   |   |   |   |
|                                                         |   |                                          |      |   |   |   |   |
| Cash                  and cash equivalents-end of year       |   | $                                             | 6,456,669 |   | $ | 2,089,994 |   |
|                                                         |   |                                          |      |   |   |   |   |

| Supplementary                  cash flow information: |   |   |      |   |   |    |   |
|-------------------------------------------------------|--------|--------|-----------|--------|--------|---------|--------|
| Tax                  paid                             |   | $      | 1,364,381 |   | $      | 937,036 |   |
| Interest                  received                    |   |   | 143       |   |   | 1,457   |   |
| Interest                  paid                        |   |   | -         |   |   | 3,040   |   |
|                                                  |   |   |      |   |   |    |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars**
**)(Unaudited)**

| **1.  ** | **ORGANIZATION                  AND PRINCIPAL ACTIVITIES** |
|--------------------|------------------------------------------------------------|

| **2.  ** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING                  POLICIES** |
|--------------------|----------------------------------------------------------------------------------|

| *(a)* | *Method                  of Accounting* |
|-------|-----------------------------------------|

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **2.** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES (****Continued****)** |
|--------|-------------------------------------------------------------------------------------|

| *(b)* | *Principles                  of Consolidation* |
|-------|------------------------------------------------|

|  Name                  of Company                                    |   | Place                  of incorporation |   | Attributable                  interest |
|---------------------------------------------------------------------------|--------|-----------------------------------------|--------|----------------------------------------|
|                                                                      |   |                                    |   |                                   |
| World                  Through Ltd                                        |   | British                  Virgin Islands |   | 100%                                   |
|                                                                      |   |                                    |   |                                   |
| Sunway                  World Through Technology (Daqing) Co Ltd          |   | PRC                                     |   | 100%                                   |
|                                                                      |   |                                    |   |                                   |
| *Daqing                  Sunway Technology Co Ltd                         |   | PRC                                     |   | 100%                                   |
|                                                                      |   |                                    |   |                                   |
| *Beijing                  Sunway New-force Medical Treatment Tech Co.,Ltd |   | PRC                                     |   | 100%                                   |
|                                                                      |   |                                    |   |                                   |
| *Note:                  Deemed variable interest entity                   |   |                                    |   |                                   |

| *(c)* | *Use                  of estimates* |
|-------|-------------------------------------|

| *(d)* | *Economic                  and political risks* |
|-------|-------------------------------------------------|

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **2.** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES (****Continued****)** |
|--------|-------------------------------------------------------------------------------------|

| *(e)* | *Intangibles* |
|-------|---------------|

| Land use rights         | 47 years |
|-------------------------|----------|
| Technology-based design | 10 years |

| (f)                  | Accounting                  for software systems |
|---------------------------|--------------------------------------------------|

| *(g)* | *Property,                  plant and equipment* |
|-------|--------------------------------------------------|

| Buildings                           | 20 years                         |
|-------------------------------------|----------------------------------|
| Machinery and equipment             | 6 years                     |
| Molding                             | 10 years                    |
| Computer software                   | 3 years                     |
| Office equipment and motor vehicles | 6 -                10 years |

| *(h)* | *Maintenance                  and repairs* |
|-------|--------------------------------------------|

| *(i)* | *Accounting                  for the impairment of long-lived                  assets* |
|-------|----------------------------------------------------------------------------------------|

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **2.** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES (****Continued****)** |
|--------|-------------------------------------------------------------------------------------|

| *(j)* | *Inventories* |
|-------|---------------|

| *(k)* | *Trade                  receivables* |
|-------|--------------------------------------|

| *(l)* | *Cash                  and cash equivalents* |
|-------|----------------------------------------------|

|                                                      |   | **March                  31, 2008** |      | **December                  31, 2007** |   |
|-----------------------------------------------------------|--------|-------------------------------------|-----------|----------------------------------------|--------|
| Bank                  of Communications, Branch of Daqing |   |                                |      |                                   |   |
| City                  Economic Zone                       |   |                                | 5,523,397 |                                   |   | 5,398,866 |   |
| Agricultural                  Bank of China               |   |                                | 514,746   |                                   |   | - |   |
| Daqing                  City Commercial Bank              |   |                                | 75,858    |                                   |   | 72,690 |   |
| HSBC                                                      |   |                                | 298,362   |                                   |   | 348,362 |   |
| Cash                  on hand                             |   |                                | 44,306    |                                   |   | 182 |   |
|                                                      |   |                                | 6,456,669 |                                   |   | 5,820,100 |   |

| *(m)* | *Restricted                  cash* |
|-------|------------------------------------|

| *(n)* | *Revenue                  recognition* |
|-------|----------------------------------------|

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **2.** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES (****Continued****)** |
|--------|-------------------------------------------------------------------------------------|

| *(o)* | *Warranty                  liabilities* |
|-------|-----------------------------------------|

| *(p)* | *Costs                  of sales* |
|-------|-----------------------------------|

| *(q)* | *Advertising* |
|-------|---------------|

| *(r)* | *Shipping                  and handling* |
|-------|------------------------------------------|

| *(s)* | *Research                  and development* |
|-------|---------------------------------------------|

| *(t)* | *Retirement                  benefits* |
|-------|----------------------------------------|

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **2.** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES (****Continued****)** |
|--------|-------------------------------------------------------------------------------------|

| *(u)* | *Income                  taxes* |
|-------|---------------------------------|

| *(v)* | *Foreign                  currency translation* |
|-------|-------------------------------------------------|

|                                        |   | **March                  31, 2008** |   | **December                  31, 2007** |   | **March                  31, 2007** |   |
|---------------------------------------------|--------|-------------------------------------|--------|----------------------------------------|--------|-------------------------------------|--------|
| Twelve                  months ended        |   |                                | -      |                                   |   | 7.3141                              |   |   | - |   |
| RMB                  : USD exchange rate    |   |                                |   |                                   |   |                                |   |   |   |   |
| Three                  months ended         |   |                                | 7.0222 |                                   |   | -                                   |   |   | 7.7410 |   |
| RMB                  : USD exchange rate    |   |                                |   |                                   |   |                                |   |   |   |   |
| Average                  three months ended |   |                                | 7.1757 |                                   |   | -                                   |   |   | 7.7714 |   |
| RMB                  : USD exchange rate    |   |                                |   |                                   |   |                                |   |   |   |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **2.** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES (****Continued****)** |
|--------|-------------------------------------------------------------------------------------|

| *(w)* | *Statutory                  reserves* |
|-------|---------------------------------------|

| (i)     | Making                  up cumulative prior years’ losses, if                  any; |
|-----------------------------|-------------------------------------------------------------------------------------------|

| (ii)    | Allocations                  to the “Statutory surplus reserve” of at least 10% of income after tax, as                  determined under PRC accounting rules and regulations, until the                  fund                  amounts to 50% of the Company's registered capital, which is restricted                  for set off against losses, expansion of production and operation                  or                  increase in registered capital; |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Allocations                  of 5-10% of income after tax, as determined under PRC accounting                  rules and                  regulations, to the Company's “Statutory common welfare fund”, which is                  restricted for capital expenditure for the collective benefits                  of the                  Company's employees; and |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | Allocations                  to the discretionary surplus reserve, if approved in the shareholders’                  general meeting. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| *(x)* | *Comprehensive                  income* |
|-------|-----------------------------------------|

| *(y)* | *Recent                  accounting pronouncements* |
|-------|-----------------------------------------------------|

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **2.** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES (****Continued****)** |
|--------|-------------------------------------------------------------------------------------|

|  | *(y)* | *Recent                  accounting pronouncements                  (continued)* |
|--|-------|----------------------------------------------------------------------------------|

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **3.  ** | **CONCENTRATIONS                  OF CREDIT RISK AND MAJOR                  CUSTOMERS** |
|--------------------|-----------------------------------------------------------------------------------------|

|                        |   | For                  the three-months ended March 31, |    |
|-----------------------------|--------|-------------------------------------------------------|---------|
|                        |   | 2008                                                  |    | 2007 |   |
|                        |   |                                                  |    |   |   |
| Customer                  A |   | $                                                     | 529,567 |   | $ | - |   |
| Customer                  B |   |                                                  | 453,616 |   |   | - |   |
| Customer                  C |   |                                                  | 438,983 |   |   | - |   |
| Customer                  D |   |                                                  | 370,697 |   |   | - |   |
| Customer                  E |   |                                                  | -       |   |   | 382,816 |   |
| Customer                  F |   |                                                  | -       |   |   | 310,756 |   |

|                        |   | March                  31, 2008 |    | December                  31, 2007 |   |
|-----------------------------|--------|---------------------------------|---------|------------------------------------|--------|
|                        |   |                            |    |                               |   |
| Customer                  A |   | $                               | 633,135 |                               | $      | 275,851 |   |
| Customer                  B |   |                            | -       |                               |   | 269,861 |   |
| Customer                  D |   |                            | 223,930 |                               |   | 235,149 |   |
| Customer                  H |   |                            | -       |                               |   | 221,510 |   |
| Customer                  I |   |                            | -       |                               |   | 159,005 |   |
| Customer                  J |   |                            | -       |                               |   | 146,688 |   |
| Customer                  K |   |                            | 244,923 |                               |   | - |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **4.** | **AMOUNT                    DUE FROM A RELATED                    COMPANY** |
|--------|-----------------------------------------------------------------------------|

| **5.** | **AMOUNT                    DUE FROM A DIRECTOR** |
|--------|---------------------------------------------------|

| **6.** | **TRADE                    RECEIVABLES, NET** |
|--------|-----------------------------------------------|

|                                          |   | March                  31, 2008 |      | December                  31, 2007 |   |
|-----------------------------------------------|--------|---------------------------------|-----------|------------------------------------|--------|
|                                          |   |                            |      |                               |   |
| Trade                  receivable, gross      |   | $                               | 2,216,972 |                               | $      | 1,533,085 |   |
| Provision                  for doubtful debts |   |                            | (8,212    | )                                  |   | (7,884 | ) |
|                                          |   |                            |      |                               |   |   |   |
|                                          |   | $                               | 2,208,760 |                               | $      | 1,525,201 |   |

|                                                 |   | March                  31, 2008 |   | December                  31, 2007 |   |
|------------------------------------------------------|--------|---------------------------------|--------|------------------------------------|--------|
|                                                 |   |                            |   |                               |   |
| Balance                  at beginning of period/year |   | $                               | 7,884  |                               | $      | 7,377 |   |
| Foreign                  exchange adjustment         |   |                            | 328    |                               |   | 507 |   |
|                                                 |   |                            |   |                               |   |   |   |
| Balance                  at end of period/year       |   | $                               | 8,212  |                               | $      | 7,884 |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **7.  ** | **TRAVEL                  ADVANCES TO DIRECTORS** |
|--------------------|---------------------------------------------------|

|                         |   | March                  31, 2008 |   | December                  31, 2007 |   |
|------------------------------|--------|---------------------------------|--------|------------------------------------|--------|
|                         |   |                            |   |                               |   |
| Bo                  Liu      |   | $                               | 14,389 |                               | $      | 4,244 |   |
| Qichai                  Zhao |   |                            | -      |                               |   | 700 |   |
| Deli                  Liang  |   |                            | -      |                               |   | 6,568 |   |
| Weishan                  Sun |   |                            | 24,748 |                               |   | 19,312 |   |
|                         |   |                            |   |                               |   |   |   |
|                         |   |                            |   |                               |   |   |   |
|                         |   | $                               | 39,137 |                               | $      | 30,824 |   |
|                         |   |                            |   |                               |   |   |   |

| **8.  ** | **ADVANCES                  TO EMPLOYEES** |
|--------------------|--------------------------------------------|

| **9.  ** | **INVENTORIES** |
|--------------------|-----------------|

|                            |   | March                  31, 2008 |    | December                  31, 2007 |   |
|---------------------------------|--------|---------------------------------|---------|------------------------------------|--------|
|                            |   |                            |    |                               |   |
| Finished                  goods |   | $                               | 538,386 |                               | $      | 161,005 |   |
| Raw                  materials  |   |                            | 337,821 |                               |   | 605,928 |   |
|                            |   |                            |    |                               |   |   |   |
|                            |   |                            |    |                               |   |   |   |
|                            |   | $                               | 876,207 |                               | $      | 766,933 |   |
|                            |   |                            |    |                               |   |   |   |

| **10.  ** | **PROPERTY,                  PLANT AND EQUIPMENT, NET** |
|---------------------|---------------------------------------------------------|

|                                            |   | March                  31, 2008 |       | December                  31, 2007 |   |
|-------------------------------------------------|--------|---------------------------------|------------|------------------------------------|--------|
| At                  cost                        |   |                            |       |                               |   |
| Building                                        |   | $                               | 1,412,774  |                               | $      | 1,356,392 |   |
| Machinery                  and equipment        |   |                            | 1,073,065  |                               |   | 1,022,960 |   |
| Moldings                                        |   |                            | 4,052,476  |                               |   | 2,992,166 |   |
| Computer                  software              |   |                            | 2,023,582  |                               |   | 1,942,823 |   |
| Office                  equipment and motor     |   |                            |       |                               |   |   |   |
| vehicles                                        |   |                            | 83,784     |                               |   | 80,439 |   |
|                                            |   |                            |       |                               |   |   |   |
|                                            |   |                            |       |                               |   |   |   |
|                                            |   | $                               | 8,645,681  |                               | $      | 7,394,780 |   |
| Less:                  accumulated depreciation |   |                            | (3,249,156 | )                                  |   | (2,945,161 | ) |
|                                            |   |                            |       |                               |   |   |   |
|                                            |   |                            |       |                               |   |   |   |
|                                            |   | $                               | 5,396,525  |                               | $      | 4,449,619 |   |
|                                            |   |                            |       |                               |   |   |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **10.** | **PROPERTY,                  PLANT AND EQUIPMENT,                  NET(Continued)** |
|---------|-------------------------------------------------------------------------------------|

|                                                 |   | For                  the three-months ended March 31, |    |
|------------------------------------------------------|--------|-------------------------------------------------------|---------|
|                                                 |   | 2008                                                  |    | 2007 |   |
| Cost                  of sales                       |   | $                                                     | 163,266 |   | $ | 145,200 |   |
| General                  and administrative expenses |   |                                                  | 14,421  |   |   | 82,362 |   |
|                                                 |   |                                                  |    |   |   |   |   |
|                                                 |   | $                                                     | 177,687 |   | $ | 227,562 |   |
|                                                 |   |                                                  |    |   |   |   |   |

| **11.  ** | **INTANGIBLE                  ASSETS, NET** |
|---------------------|---------------------------------------------|

|                                                               |   | March                  31, 2008 |      | December                  31, 2007 |   |
|--------------------------------------------------------------------|--------|---------------------------------|-----------|------------------------------------|--------|
|                                                               |   |                            |      |                               |   |
| Land                  use rights, at cost                          |   | $                               | 1,321,908 |                               | $      | 1,269,151 |   |
| Less:                  accumulated amortization                    |   |                            | (67,972   | )                                  |   | (58,508 | ) |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   | $                               | 1,253,936 |                               | $      | 1,210,643 |   |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   |                            |      |                               |   |   |   |
| Technology-based                  design,                  at cost |   | $                               | 6,169,363 |                               | $      | 5,923,149 |   |
| Less:                  accumulated amortization                    |   |                            | (402,165  | )                                  |   | (200,301 | ) |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   | $                               | 5,767,198 |                               | $      | 5,722,848 |   |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   |                            |      |                               |   |   |   |
|                                                               |   | $                               | 7,021,134 |                               | $      | 6,933,491 |   |
|                                                               |   |                            |      |                               |   |   |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **12.  ** | **WARRANTY                  LIABILITIES** |
|---------------------|-------------------------------------------|

|                                                 |   | 2008   |   | 2007   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                 |   |   |   |   |   |
| Balance                  at beginning of period/year |   | $      | 55,351 |   | $      | 22,811 |   |
| Addition                  of warranty liabilities    |   |   | -      |   |   | 55,918 |   |
| Warranty                  expense for the year       |   |   | -      |   |   | (23,378 | ) |
| Foreign                  currency difference         |   |   | 2,300  |   |   | - |   |
|                                                 |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   |
| Balance                  at end of period/year       |   | $      | 57,651 |   | $      | 55,351 |   |
|                                                 |   |   |   |   |   |   |   |

| **13.  ** | **SERIES                  B CONVERTIBLE PREFERRED STOCK AND ASSOCIATED                  WARRANTS** |
|---------------------|----------------------------------------------------------------------------------------------------|

|                                                      |   | **Investment****Amount** |      | **Preferred                  B** |   | **A                  Warrant** |   | **B                  Warrant** |      | **J                  Warrant** |   | **C                  Warrant** |   | **D                  Warrant** |      |
|-----------------------------------------------------------|--------|--------------------------|-----------|----------------------------------|--------|--------------------------------|--------|--------------------------------|-----------|--------------------------------|--------|--------------------------------|--------|--------------------------------|-----------|
| **Vision                  Opportunity Master Fund, Ltd.** |   |                     | 6,500,000 |                             |   | 160,494                        |   |                           | 4,814,815 |                           |   | 2,407,407                      |   |                           | 4,362,416 |   |   | 4,362,416 |   |   | 2,181,208 |   |
| **Columbia                  China Capital Group, Inc.**   |   |                     | 200,000   |                             |   | 4,938                          |   |                           | 148,148   |                           |   | 74,074                         |   |                           | 134,228   |   |   | 134,228 |   |   | 67,114 |   |

| **Series                  of Warrant** | **Number                  of shares** | **Exercise                  Price** | **Expiry                  Date** |
|----------------------------------------|---------------------------------------|-------------------------------------|----------------------------------|
| **Series                  A**          | 4,962,963                             | $                  1.76             | 6                  /5 /2012      |
| **Series                  B**          | 2,481,481                             | 2.30                                | 6                  /5 /2012      |
| **Series                  J**          | 4,496,644                             | 1.49                                | 6                  /5 /2008      |
| **Series                  C**          | 4,496,644                             | 1.94                                | 6                  /5 /2012      |
| **Series                  D**          | 2,248,322                             | 2.53                                | 6                  /5 /2012      |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **13.** | **SERIES                  B CONVERTIBLE PREFERRED STOCK AND ASSOCIATED                  WARRANTS** |
|---------|----------------------------------------------------------------------------------------------------|

| **14.  ** | **EARNINGS                  PER SHARE** |
|---------------------|-----------------------------------------|

|                                                   |   | For                  the three-months ended March 31, |       |
|--------------------------------------------------------|--------|-------------------------------------------------------|------------|
| Earnings:                                              |   | 2008                                                  |       | 2007 |   |
| Earnings                  for the purpose of basic     |   |                                                  |       |   |   |
| earnings                  per share                    |   | $                                                     | 1,336,802  |   | $ | 1,187,031 |   |
| Effect                  of dilutive potential common   |   |                                                  |       |   |   |   |   |
| stock                                                  |   |                                                  | -          |   |   | - |   |
|                                                   |   |                                                  |       |   |   |   |   |
|                                                   |   |                                                  |       |   |   |   |   |
| Earnings                  for the purpose of basic     |   |                                                  |       |   |   |   |   |
| earnings                  per share                    |   | $                                                     | 1,336,802  |   | $ | 1,187,031 |   |
|                                                   |   |                                                  |       |   |   |   |   |
|                                                   |   |                                                  |       |   |   |   |   |
|                                                   |   |                                                  |       |   |   |   |   |
| Number                  of shares:                     |   |                                                  |       |   |   |   |   |
| Weighted                  average number of            |   |                                                  |       |   |   |   |   |
| common                  stock for the purpose of basic |   |                                                  |       |   |   |   |   |
| earnings                  per share                    |   |                                                  | 8,360,349  |   |   | 223,653 |   |
| Effect                  of dilutive potential common   |   |                                                  |       |   |   |   |   |
| stock                                                  |   |                                                  | 14,285,136 |   |   | - |   |
|                                                   |   |                                                  |       |   |   |   |   |
|                                                   |   |                                                  |       |   |   |   |   |
| Weighted                  average number of common     |   |                                                  |       |   |   |   |   |
| stock                  for the purpose of dilutive     |   |                                                  |       |   |   |   |   |
| earnings                  per share                    |   |                                                  | 22,645,485 |   |   | 223,653 |   |
|                                                   |   |                                                  |       |   |   |   |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **15.  ** | **INCOME                  TAXES** |
|---------------------|-----------------------------------|

|                                                       |   | Three                  months ended March 31, |   |
|------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                       |   | 2008                                          |   | 2007 |   |
|                                                       |   |                                          |   |   |   |
| U.S.                  statutory rate                       |   |                                          | 34     | % |   | 34 | % |
| Foreign                  income not recognized in the U.S. |   |                                          | (34    | %) |   | (34 | %) |
| PRC                  Enterprise Income Tax                 |   |                                          | 33     | % |   | 33 | % |
| Tax                  holiday                               |   |                                          | (18    | %) |   | (18 | %) |
|                                                       |   |                                          |   |   |   |   |   |
|                                                       |   |                                          |   |   |   |   |   |
| Provision                  for income tax                  |   |                                          | 15     | % |   | 15 | % |
|                                                       |   |                                          |   |   |   |   |   |

| **16.  ** | **FAIR                  VALUE OF FINANCIAL                  INSTRUMENTS** |
|---------------------|---------------------------------------------------------------------------|

| **17.  ** | **COMMITMENTS                  AND CONTINGENCIES** |
|---------------------|----------------------------------------------------|

|                       |   |   |   |
|----------------------------|--------|--------|--------|
| March                  31, |   |   |   |
| 2008                       |   | $      | 3,613  |   |
|                       |   |   |   |   |
|                       |   |   |   |   |
|                       |   | $      | 3,613  |   |
|                       |   |   |   |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **18.  ** | **SEGMENT                  INFORMATION** |
|---------------------|------------------------------------------|

| *For                  the three months ended March 31, 2008* |   |   *Workstation* |     |   *Workstation* |   |   *Workstation* |   |   |     |           |   |
|--------------------------------------------------------------|--------|---------------------------|----------|---------------------------|--------|---------------------------|--------|--------|----------|----------------|--------|
|                                                         |   | *Type                  A* |     | *Type                  B* |   | *Type                  C* |   | *SADP* |     | *Consolidated* |   |
|                                                         |   |                      |     |                      |   |                      |   |   |     |           |   |
| Net                  revenues                                |   | $                         | 653,597  |                      | $      | 2,024,198                 |   | $      | 356,064  |           | $      | 529,566 |   | $ | 3,563,425 |   |
|                                                         |   |                      |     |                      |   |                      |   |   |     |           |   |   |   |   |   |   |
| Cost                  of net                                 |   |                      |     |                      |   |                      |   |   |     |           |   |   |   |   |   |   |
| revenues                                                     |   |                      | (177,442 | )                         |   | (628,720                  | )      |   | (134,920 | )              |   | (200,663 | ) |   | (1,141,745 | ) |
|                                                         |   |                      |     |                      |   |                      |   |   |     |           |   |   |   |   |   |   |
|                                                         |   |                      |     |                      |   |                      |   |   |     |           |   |   |   |   |   |   |
|                                                         |   | $                         | 476,155  |                      | $      | 1,395,478                 |   | $      | 221,144  |           | $      | 328,903 |   | $ | 2,421,680 |   |
|                                                         |   |                      |     |                      |   |                      |   |   |     |           |   |   |   |   |   |   |

| *For                  the three months ended March 31, 2007* |   |   *Workstation* |      |   *Workstation* |   |   *Workstation* |   |   |   |           |   |
|--------------------------------------------------------------|--------|---------------------------|-----------|---------------------------|--------|---------------------------|--------|--------|--------|----------------|--------|
|                                                         |   | *Type                  A* |      | *Type                  B* |   | *Type                  C* |   | *SADP* |   | *Consolidated* |   |
|                                                         |   |                      |      |                      |   |                      |   |   |   |           |   |
| Net                  revenues                                |   | $                         | 1,067,194 |                      | $      | 1,400,034                 |   | $      | -      |           | $      | - |   | $ | 2,467,228 |   |
|                                                         |   |                      |      |                      |   |                      |   |   |   |           |   |   |   |   |   |   |
| Cost                  of net                                 |   |                      |      |                      |   |                      |   |   |   |           |   |   |   |   |   |   |
| revenues                                                     |   |                      | (283,369  | )                         |   | (360,878                  | )      |   | -      |           |   | - |   |   | (644,247 | ) |
|                                                         |   |                      |      |                      |   |                      |   |   |   |           |   |   |   |   |   |   |
|                                                         |   |                      |      |                      |   |                      |   |   |   |           |   |   |   |   |   |   |
|                                                         |   | $                         | 783,825   |                      | $      | 1,039,156                 |   | $      | -      |           | $      | - |   | $ | 1,822,981 |   |
|                                                         |   |                      |      |                      |   |                      |   |   |   |           |   |   |   |   |   |   |

----

**SUNWAY        GLOBAL INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR        THE THREE-MONTHS ENDED MARCH 31, 2008 AND 2007**

**(Stated        in US Dollars)(Unaudited)**

| **19.  ** | **RESTATEMENTS** |
|---------------------|------------------|

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|
|                                    |

**BALANCE        SHEETS**

|                                                          |   | Original                        |       | Restated    |   |
|---------------------------------------------------------------|--------|---------------------------------|------------|-------------|--------|
|                                                          |   | March                  31, 2008 |       |
| **ASSETS**                                                    |   | (Unaudited)                     |       | (Unaudited) |   |
| Current                  assets                               |   |                            |       |        |   |
| Cash                  and cash equivalents                    |   | $                               | 6,456,669  |        | $      | 6,456,669 |   |
| Restricted                  cash                              |   |                            | 467,954    |        |   | - |   |
| Trade                  receivables, net                       |   |                            | 2,208,760  |        |   | 2,208,760 |   |
| Inventories                                                   |   |                            | 876,207    |        |   | 876,207 |   |
| Advances                  to suppliers                        |   |                            | 421,542    |        |   | 421,542 |   |
| Prepayments                                                   |   |                            | 595,282    |        |   | 595,282 |   |
| Tender                  deposits                              |   |                            | -          |        |   | - |   |
| Travel                  advances to directors                 |   |                            | 39,137     |        |   | 39,137 |   |
| Advances                  to employees                        |   |                            | 398,153    |        |   | 398,153 |   |
|                                                          |   |                            |       |        |   |   |   |
|                                                          |   |                            |       |        |   |   |   |
| Total                  current assets                         |   | $                               | 11,463,704 |        | $      | 10,995,750 |   |
| Amount                  due from a related company            |   |                            | 830        |        |   | 830 |   |
| Restricted                  cash                              |   |                            | -          |        |   | 467,954 |   |
| Amount                  due from a director                   |   |                            | 726,133    |        |   | 726,133 |   |
| Deposit                  for acquisition of computer software |   |                            | 1,281,650  |        |   | 1,281,650 |   |
| Property,                  plant and equipment, net           |   |                            | 5,396,525  |        |   | 5,396,525 |   |
| Intangible                  assets, net                       |   |                            | 7,021,134  |        |   | 7,021,134 |   |
|                                                          |   |                            |       |        |   |   |   |
|                                                          |   |                            |       |        |   |   |   |
| **TOTAL                  ASSETS**                             |   | $                               | 25,889,976 |        | $      | 25,889,976 |   |
|                                                          |   |                            |       |        |   |   |   |
| **LIABILITIES                  AND**                          |   |                            |       |        |   |   |   |
| **STOCKHOLDERS’                  EQUITY**               |   |                            |       |        |   |   |   |
| Current                  liabilities                          |   |                            |       |        |   |   |   |
| Accounts                  payable                             |   | $                               | 39,823     |        | $      | 39,823 |   |
| Income                  tax payable                           |   |                            | 282,820    |        |   | 282,820 |   |
| Turnover                  and other taxes                     |   |                            | 235,056    |        |   | 235,056 |   |
| Expected                  warranty expenses                   |   |                            | 57,651     |        |   | 57,651 |   |
| Customers                  deposits                           |   |                            | -          |        |   | - |   |
| Accrued                  liabilities                          |   |                            | 374,037    |        |   | 374,037 |   |
| Other                  payables                               |   |                            | 30,367     |        |   | 30,367 |   |
|                                                          |   |                            |       |        |   |   |   |
|                                                          |   |                            |       |        |   |   |   |
| Total                  current liabilities                    |   | $                               | 1,019,754  |        | $      | 1,019,754 |   |
|                                                          |   |                            |       |        |   |   |   |
|                                                          |   |                            |       |        |   |   |   |
| **TOTAL                  LIABILITIES**                        |   | $                               | 1,019,754  |        | $      | 1,019,754 |   |

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|
|                                    |

**BALANCE        SHEETS (Continued)**

|                                                      |   | Original                        |       | Restated    |   |
|-----------------------------------------------------------|--------|---------------------------------|------------|-------------|--------|
|                                                      |   | March                  31, 2008 |       |
|                                                      |   | (Unaudited)                     |       | (Unaudited) |   |
| **STOCKHOLDERS’                  EQUITY**           |   |                            |       |        |   |   |   |
| Series                  A Convertible Preferred           |   |                            |       |        |   |   |   |
| Stock                  $0.001 par value 400,000 shares    |   |                            |       |        |   |   |   |
| authorized;                  Nil and 246,176 shares       |   |                            |       |        |   |   |   |
| issued                  and outstanding at March 31, 2008 |   |                            |       |        |   |   |   |
| and                  December 31, 2007 respectively       |   | $                               | -          |        | $      | - |   |
| Series                  B Convertible Preferred           |   |                            |       |        |   |   |   |
| Stock                  $0.001 par value 400,000           |   |                            |       |        |   |   |   |
| shares                  authorized; 165,432               |   |                            |       |        |   |   |   |
| shares                  issued and outstanding            |   |                            |       |        |   |   |   |
| at                  March 31, 2008 and December 31, 2007  |   |                            | 165        |        |   | 165 |   |
|                                                      |   |                            |       |        |   |   |   |
| Common                  stock at $0.001 par value         |   |                            |       |        |   |   |   |
| 100,000,000                  shares authorized;           |   |                            |       |        |   |   |   |
| 13,935,489                  and 223,658 shares issued and |   |                            |       |        |   |   |   |
| outstanding                  at March 31, 2008            |   |                            |       |        |   |   |   |
| and                  December 31, 2007 respectively       |   |                            | 13,935     |        |   | 13,935 |   |
| Additional                  paid-in capital               |   |                            | 16,339,368 |        |   | 16,085,868 |   |
| Statutory                  reserves                       |   |                            | 2,165,287  |        |   | 2,127,978 |   |
| Retained                  earnings                        |   |                            | 4,653,943  |        |   | 4,525,082 |   |
| Accumulated                  other comprehensive income   |   |                            | 1,697,524  |        |   | 2,117,194 |   |
|                                                      |   |                            |       |        |   |   |   |
|                                                      |   |                            |       |        |   |   |   |
|                                                      |   | $                               | 24,870,222 |        | $      | 24,870,222 |   |
|                                                      |   |                            |       |        |   |   |   |
|                                                      |   |                            |       |        |   |   |   |
| **TOTAL                  LIABILITIES AND**                |   |                            |       |        |   |   |   |
| **STOCKHOLDERS’                  EQUITY**           |   | $                               | 25,889,976 |        | $      | 25,889,976 |   |
|                                                      |   |                            |       |        |   |   |   |

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|
|                                    |
| **BALANCE                  SHEETS**     |

|                                                |   | Original                      |       | Restated |   |
|-----------------------------------------------------|--------|-------------------------------|------------|----------|--------|
|                                                |   | December                  31, |       |
|                                                |   | 2007                          |       | 2007     |   |
| **ASSETS**                                          |   |                          |       |     |   |
| Current                  assets                     |   |                          |       |     |   |
| Cash                  and cash equivalents          |   | $                             | 5,820,100  |     | $      | 5,820,100 |   |
| Restricted                  cash                    |   |                          | 491,049    |     |   | - |   |
| Short                  term investments             |   |                          | -          |     |   | - |   |
| Trade                  receivables, net             |   |                          | 1,525,201  |     |   | 1,525,201 |   |
| Inventories                                         |   |                          | 766,933    |     |   | 766,933 |   |
| Advances                  to suppliers              |   |                          | 1,331,159  |     |   | 1,331,159 |   |
| Prepayments                                         |   |                          | 125,333    |     |   | 125,333 |   |
| Tender                  deposits                    |   |                          | 131,013    |     |   | 131,013 |   |
| Travel                  advances to directors       |   |                          | 30,824     |     |   | 30,824 |   |
| Advances                  to employees              |   |                          | 548,364    |     |   | 548,364 |   |
|                                                |   |                          |       |     |   |   |   |
|                                                |   |                          |       |     |   |   |   |
| Total                  current assets               |   | $                             | 10,769,976 |     | $      | 10,278,927 |   |
| Amount                  due from a related company  |   |                          | 585,678    |     |   | 585,678 |   |
| Restricted                  cash                    |   |                          | -          |     |   | 491,049 |   |
| Amount                  due from a director         |   |                          | 1,028,474  |     |   | 1,028,474 |   |
| Property,                  plant and equipment, net |   |                          | 4,449,619  |     |   | 4,449,619 |   |
| Intangibles,                  net                   |   |                          | 6,933,491  |     |   | 6,933,491 |   |
|                                                |   |                          |       |     |   |   |   |
|                                                |   |                          |       |     |   |   |   |
| **TOTAL                  ASSETS**                   |   | $                             | 23,767,238 |     | $      | 23,767,238 |   |
|                                                |   |                          |       |     |   |   |   |
| **LIABILITIES                  AND**                |   |                          |       |     |   |   |   |
| **STOCKHOLDERS’                  EQUITY**     |   |                          |       |     |   |   |   |
| Current                  liabilities                |   |                          |       |     |   |   |   |
| Short                  term bank loans              |   | $                             | -          |     | $      | - |   |
| Accounts                  payable                   |   |                          | 245,917    |     |   | 245,917 |   |
| Income                  tax payable                 |   |                          | 157,877    |     |   | 157,877 |   |
| Turnover                  and other taxes           |   |                          | 143,857    |     |   | 143,857 |   |
| Expected                  warranty expenses         |   |                          | 55,351     |     |   | 55,351 |   |
| Customers                  deposits                 |   |                          | 208,274    |     |   | 208,274 |   |
| Accrued                  liabilities                |   |                          | 323,464    |     |   | 323,464 |   |
| Other                  payables                     |   |                          | 35,984     |     |   | 35,984 |   |
|                                                |   |                          |       |     |   |   |   |
|                                                |   |                          |       |     |   |   |   |
| Total                  current liabilities          |   | $                             | 1,170,724  |     | $      | 1,170,724 |   |
|                                                |   |                          |       |     |   |   |   |
|                                                |   |                          |       |     |   |   |   |
| **TOTAL                  LIABILITIES**              |   | $                             | 1,170,724  |     | $      | 1,170,724 |   |

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|

| **BALANCE                  SHEETS (Continued)** |
|-------------------------------------------------|

|                                            |   | Original                      |       | Restated |   |
|-------------------------------------------------|--------|-------------------------------|------------|----------|--------|
|                                            |   | December                  31, |       |
|                                            |   | 2007                          |       | 2007     |   |
| **STOCKHOLDERS’                  EQUITY** |   |                          |       |     |   |   |   |
| Series                  A Convertible Preferred |   |                          |       |     |   |   |   |
| Stock                  $0.001 par value 400,000 |   |                          |       |     |   |   |   |
| shares                  authorized; 246,176     |   |                          |       |     |   |   |   |
| shares                  issued and outstanding  |   |                          |       |     |   |   |   |
| at                  Dec 31, 2007 and 2006       |   | $                             | 246        |     | $      | 246 |   |
| Series                  B Convertible Preferred |   |                          |       |     |   |   |   |
| Stock                  $0.001 par value 400,000 |   |                          |       |     |   |   |   |
| shares                  authorized; 165,432     |   |                          |       |     |   |   |   |
| shares                  issued and outstanding  |   |                          |       |     |   |   |   |
| at                  Dec 31, 2007 and 2006       |   |                          | 165        |     |   | 165 |   |
|                                            |   |                          |       |     |   |   |   |
| Common                  stock at $0.001 par     |   |                          |       |     |   |   |   |
| value,                  100,000,000 shares;     |   |                          |       |     |   |   |   |
| authorized                  223,658 shares      |   |                          |       |     |   |   |   |
| issued                  and outstanding at      |   |                          |       |     |   |   |   |
| Dec                  31, 2007 and 2006          |   |                          | 224        |     |   | 224 |   |
| Additional                  paid-in capital     |   |                          | 16,352,833 |     |   | 16,099,333 |   |
| Statutory                  reserves             |   |                          | 2,165,287  |     |   | 2,127,978 |   |
| Retained                  earnings              |   |                          | 3,317,141  |     |   | 3,188,280 |   |
| Accumulated                  other              |   |                          |       |     |   |   |   |
| comprehensive                  income           |   |                          |       |     |   |   |   |
| Unrealised                  gain on investment  |   |                          | -          |     |   | - |   |
| Foreign                  currency translation   |   |                          | 760,618    |     |   | 1,180,288 |   |
|                                            |   |                          |       |     |   |   |   |
|                                            |   |                          |       |     |   |   |   |
|                                            |   | $                             | 22,596,514 |     | $      | 22,596,514 |   |
|                                            |   |                          |       |     |   |   |   |
|                                            |   |                          |       |     |   |   |   |
| **TOTAL                  LIABILITIES AND**      |   |                          |       |     |   |   |   |
| **STOCKHOLDERS’                  EQUITY** |   | $                             | 23,767,238 |     | $      | 23,767,238 |   |
|                                            |   |                          |       |     |   |   |   |

----

| **SUNWAY                  GLOBAL INC.**   |
|-------------------------------------------|
|                                      |
| **STATEMENTS                  OF INCOME** |

|                                                                   |   | Original                                      |       | Restated |   |
|------------------------------------------------------------------------|--------|-----------------------------------------------|------------|----------|--------|
|                                                                   |   | Three                  months ended March 31, |       |
|                                                                   |   | 2008                                          |       | 2008     |   |
|                                                                   |   |                                          |       |     |   |
|                                                                   |   |                                          |       |     |   |
| Net                  revenues                                          |   | $                                             | 3,563,425  |     | $      | 3,563,425 |   |
| Cost                  of net revenues                                  |   |                                          | (1,141,745 | )        |   | (1,141,745 | ) |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Gross                  profit                                          |   | $                                             | 2,421,680  |     | $      | 2,421,680 |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Selling                  expenses                                      |   |                                          | (162,555   | )        |   | (162,555 | ) |
| General                  and administrative expenses                   |   |                                          | (648,924   | )        |   | (648,924 | ) |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Income                  from operation                                 |   |                                          | 1,610,201  |     |   | 1,610,201 |   |
| Interest                  expenses                                     |   |                                          | -          |     |   | - |   |
| Interest                  income                                  |   |                                          | 143        |     |   | 143 |   |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Income                  from continuing activities before income taxes |   | $                                             | 1,610,344  |     | $      | 1,610,344 |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Income                  taxes                                          |   |                                          | (273,542   | )        |   | (273,542 | ) |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Net                  income                                            |   | $                                             | 1,336,802  |     | $      | 1,336,802 |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Foreign                  currency translation                          |   |                                          | 936,906    |     |   | 936,906 |   |
| Unrealized                  gain on investments                        |   |                                          | -          |     |   | - |   |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Comprehensive                  income                                  |   | $                                             | 2,273,708  |     | $      | 2,273,708 |   |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Net                  income per share:                                 |   |                                          |       |     |   |   |   |
| -Basic                                                                 |   | $                                             | 0.16       |     | $      | 0.16 |   |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| -Diluted                                                               |   | $                                             | 0.06       |     | $      | 0.06 |   |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| Weighted                  average number of common stock               |   |                                          |       |     |   |   |   |
| -Basic                                                                 |   | $                                             | 8,360,349  |     | $      | 8,360,349 |   |
|                                                                   |   |                                          |       |     |   |   |   |
|                                                                   |   |                                          |       |     |   |   |   |
| -Diluted                                                               |   | $                                             | 22,645,485 |     | $      | 22,645,485 |   |
|                                                                   |   |                                          |       |     |   |   |   |

----

| **SUNWAY                  GLOBAL INC.**   |
|-------------------------------------------|
|                                      |
| **STATEMENTS                  OF INCOME** |

|                                                                   |   | Original                                      |      | Restated |   |
|------------------------------------------------------------------------|--------|-----------------------------------------------|-----------|----------|--------|
|                                                                   |   | Three                  months ended March 31, |      |
|                                                                   |   | 2007                                          |      | 2007     |   |
|                                                                   |   |                                          |      |     |   |
| Net                  revenues                                          |   | $                                             | 2,467,228 |     | $      | 2,467,228 |   |
| Cost                  of net revenues                                  |   |                                          | (644,247  | )        |   | (644,247 | ) |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Gross                  profit                                          |   | $                                             | 1,822,981 |     | $      | 1,822,981 |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Selling                  expenses                                      |   |                                          | (10,592   | )        |   | (13,580 | ) |
| General                  and administrative expenses                   |   |                                          | (255,644  | )        |   | (387,513 | ) |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Income                  from operation                                 |   |                                          | 1,556,745 |     |   | 1,421,888 |   |
| Interest                  expenses                                     |   |                                          | (3,040    | )        |   | (3,040 | ) |
| Interest                  income                                  |   |                                          | 1,457     |     |   | 1,457 |   |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Income                  from continuing activities before income taxes |   | $                                             | 1,555,162 |     | $      | 1,420,305 |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Income                  taxes                                          |   |                                          | (233,274  | )        |   | (233,274 | ) |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Net                  income                                            |   | $                                             | 1,321,888 |     | $      | 1,187,031 |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Foreign                  currency translation                          |   |                                          | 297,428   |     |   | 76,577 |   |
| Unrealized                  gain on investments                        |   |                                          | 667,065   |     |   | 246,153 |   |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Comprehensive                  income                                  |   | $                                             | 2,286,381 |     | $      | 1,509,761 |   |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Net                  income per share:                                 |   |                                          |      |     |   |   |   |
| -Basic                                                                 |   | $                                             | 5.91      |     | $      | 5.31 |   |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| -Diluted                                                               |   | $                                             | 5.91      |     | $      | 5.31 |   |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| Weighted                  average number of common stock               |   |                                          |      |     |   |   |   |
| -Basic                                                                 |   | $                                             | 223,653   |     | $      | 223,653 |   |
|                                                                   |   |                                          |      |     |   |   |   |
|                                                                   |   |                                          |      |     |   |   |   |
| -Diluted                                                               |   | $                                             | 223,653   |     | $      | 223,653 |   |
|                                                                   |   |                                          |      |     |   |   |   |

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|

**STATEMENT        OF CASH FLOWS**

|                                                           |   | Original                                      |       | Restated |   |
|----------------------------------------------------------------|--------|-----------------------------------------------|------------|----------|--------|
|                                                           |   | Three                  months ended March 31, |       |
|                                                           |   | 2008                                          |       | 2008     |   |
| Cash                  flows from operating activities          |   |                                          |       |     |   |
| Net                  income                                    |   | $                                             | 1,336,802  |     | $      | 1,336,802 |   |
| Depreciation                                                   |   |                                          | 177,687    |     |   | 177,687 |   |
| Amortization                                                   |   |                                          | 196,280    |     |   | 196,280 |   |
|                                                           |   |                                          |       |     |   |   |   |
| Adjustments                  to reconcile net income           |   |                                          |       |     |   |   |   |
| to                  net cash provided by operating activities: |   |                                          |       |     |   |   |   |
| Restricted                  cash                               |   |                                          | 23,095     |     |   | - |   |
| Trade                  receivables, net                        |   |                                          | (620,159   | )        |   | (620,159 | ) |
| Inventories                                                    |   |                                          | (77,394    | )        |   | (77,394 | ) |
| Advances                  to suppliers                         |   |                                          | 964,951    |     |   | 964,951 |   |
| Prepayments                                                    |   |                                          | 383,008    |     |   | 383,008 |   |
| Travel                  advances to directors                  |   |                                          | (39,137    | )        |   | (39,137 | ) |
| Advances                  to employees                         |   |                                          | (398,153   | )        |   | (398,153 | ) |
| Accounts                  payable                              |   |                                          | (214,661   | )        |   | (214,661 | ) |
| Income                  tax payable                            |   |                                          | 118,380    |     |   | 118,380 |   |
| Turnover                  and other taxes                      |   |                                          | 85,220     |     |   | 85,220 |   |
| Loans                  from unrelated parties                  |   |                                          | 1,572,360  |     |   | 1,572,360 |   |
| Amount                  due from a director                    |   |                                          | (726,133   | )        |   | (726,133 | ) |
| Customers                  deposits                            |   |                                          | (216,932   | )        |   | (216,932 | ) |
| Accrued                  liabilities                           |   |                                          | 37,127     |     |   | 37,127 |   |
| Other                  payables                                |   |                                          | (7,113     | )        |   | (7,113 | ) |
|                                                           |   |                                          |       |     |   |   |   |
|                                                           |   |                                          |       |     |   |   |   |
| Net                  cash provided by operating activities     |   | $                                             | 2,595,228  |     | $      | 2,572,133 |   |
|                                                           |   |                                          |       |     |   |   |   |
|                                                           |   |                                          |       |     |   |   |   |
| Cash                  flows from investing activities          |   |                                          |       |     |   |   |   |
| Purchase                  of plant and equipment               |   | $                                             | (939,630   | )        | $      | (939,630 | ) |
| Restricted                  cash                               |   |                                          | -          |     |   | 23,095 |   |
| Deposit                  for acquisition of computer software  |   |                                          | (1,281,650 | )        |   | (1,281,650 | ) |
| Disposal                  of plant and equipment               |   |                                          | -          |     |   | - |   |
|                                                           |   |                                          |       |     |   |   |   |
|                                                           |   |                                          |       |     |   |   |   |
| Net                  cash used in investing activities         |   | $                                             | (2,221,280 | )        | $      | (2,198,185 | ) |
|                                                           |   |                                          |       |     |   |   |   |
| Cash                flows from financing activities            |   | $                                             | -          |     | $      | - |   |

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|
|                                    |

**STATEMENT        OF CASH FLOWS (Continued)**

|                                                         |   | Original                                      |      | Restated |   |
|--------------------------------------------------------------|--------|-----------------------------------------------|-----------|----------|--------|
|                                                         |   | Three                  months ended March 31, |      |
|                                                         |   | 2008                                          |      | 2008     |   |
|                                                         |   |                                          |      |     |   |
| Net                  in cash and cash equivalents sourced    |   | $                                             | 373,948   |     | $      | 373,948 |   |
|                                                         |   |                                          |      |     |   |   |   |
| Effect                  of foreign currency translation on   |   |                                          |      |     |   |   |   |
| cash                  and cash equivalents                   |   |                                          | 262,621   |     |   | 262,621 |   |
|                                                         |   |                                          |      |     |   |   |   |
| Cash                  and cash equivalents-beginning of year |   |                                          | 5,820,100 |     |   | 5,820,100 |   |
|                                                         |   |                                          |      |     |   |   |   |
| Cash                  and cash equivalents-end of year       |   | $                                             | 6,456,669 |     | $      | 6,456,669 |   |
|                                                         |   |                                          |      |     |   |   |   |

| Supplementary                  cash flow information: |   |   |      |   |   |      |   |
|-------------------------------------------------------|--------|--------|-----------|--------|--------|-----------|--------|
| Tax                  paid                             |   | $      | 1,364,381 |   | $      | 1,364,381 |   |
| Interest                  received                    |   |   | 143       |   |   | 143       |   |
| Interest                  paid                        |   |   | -         |   |   | -         |   |
|                                                  |   |   |      |   |   |      |   |

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|

**STATEMENT        OF CASH FLOWS**

|                                                           |   | Original                                      |      | Restated |   |
|----------------------------------------------------------------|--------|-----------------------------------------------|-----------|----------|--------|
|                                                           |   | Three                  months ended March 31, |      |
|                                                           |   | 2007                                          |      | 2007     |   |
| Cash                  flows from operating activities          |   |                                          |      |     |   |
| Net                  income                                    |   | $                                             | 1,321,888 |     | $      | 1,187,031 |   |
| Depreciation                                                   |   |                                          | 146,495   |     |   | 227,562 |   |
| Amortization                                                   |   |                                          | 41,869    |     |   | 41,869 |   |
|                                                           |   |                                          |      |     |   |   |   |
| Adjustments                  to reconcile net income           |   |                                          |      |     |   |   |   |
| to                  net cash provided by operating activities: |   |                                          |      |     |   |   |   |
| Restricted                  cash                               |   |                                          | -         |     |   | - |   |
| Trade                  receivables, net                        |   |                                          | (696,888  | )        |   | (694,156 | ) |
| Inventories                                                    |   |                                          | (115,922  | )        |   | (115,467 | ) |
| Advances                  to suppliers                         |   |                                          | (460,618  | )        |   | - |   |
| Prepayments                                                    |   |                                          | (54,242   | )        |   | (493,761 | ) |
| Travel                  advances to directors                  |   |                                          | -         |     |   | - |   |
| Advances                  to employees                         |   |                                          | -         |     |   | - |   |
| Accounts                  payable                              |   |                                          | 1,325     |     |   | (31,364 | ) |
| Income                  tax payable                            |   |                                          | (15,131   | )        |   | - |   |
| Turnover                  and other taxes                      |   |                                          | 196,530   |     |   | 177,708 |   |
| Loans                  from unrelated parties                  |   |                                          | -         |     |   | - |   |
| Amount                  due from a director                    |   |                                          | -         |     |   | - |   |
| Customers                  deposits                            |   |                                          | (7,515    | )        |   | - |   |
| Accrued                  liabilities                           |   |                                          | (24,481   | )        |   | - |   |
| Other                  payables                                |   |                                          | (13,738   | )        |   | 57,797 |   |
|                                                           |   |                                          |      |     |   |   |   |
|                                                           |   |                                          |      |     |   |   |   |
| Net                  cash provided by operating activities     |   | $                                             | 319,572   |     | $      | 357,219 |   |
|                                                           |   |                                          |      |     |   |   |   |
|                                                           |   |                                          |      |     |   |   |   |
| Cash                  flows from investing activities          |   |                                          |      |     |   |   |   |
| Purchase                  of plant and equipment               |   | $                                             | (1,877    | )        | $      | - |   |
| Deposit                  for acquisition of computer software  |   |                                          | -         |     |   | - |   |
| Disposal                  of plant and equipment               |   |                                          | -         |     |   | 33,645 |   |
|                                                           |   |                                          |      |     |   |   |   |
|                                                           |   |                                          |      |     |   |   |   |
| Net                  cash used in investing activities         |   | $                                             | (1,877    | )        | $      | 33,645 |   |
|                                                           |   |                                          |      |     |   |   |   |
| Cash                  flows from financing activities          |   | $                                             | -         |     | $      | - |   |

----

| **SUNWAY                  GLOBAL INC.** |
|-----------------------------------------|
|                                    |

**STATEMENT        OF CASH FLOWS (Continued)**

|                                                         |   | Original                                      |      | Restated |   |
|--------------------------------------------------------------|--------|-----------------------------------------------|-----------|----------|--------|
|                                                         |   | Three                  months ended March 31, |      |
|                                                         |   | 2007                                          |      | 2007     |   |
|                                                         |   |                                          |      |     |   |
| Net                  in cash and cash equivalents sourced    |   | $                                             | 317,695   |     | $      | 390,864 |   |
|                                                         |   |                                          |      |     |   |   |   |
| Effect                  of foreign currency translation on   |   |                                          |      |     |   |   |   |
| cash                  and cash equivalents                   |   |                                          | 23,251    |     |   | (49,918 | ) |
|                                                         |   |                                          |      |     |   |   |   |
| Cash                  and cash equivalents-beginning of year |   |                                          | 1,749,048 |     |   | 1,749,048 |   |
|                                                         |   |                                          |      |     |   |   |   |
| Cash                  and cash equivalents-end of year       |   | $                                             | 2,089,994 |     | $      | 2,089,994 |   |
|                                                         |   |                                          |      |     |   |   |   |

| Supplementary                  cash flow information: |   |   |    |   |   |    |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Tax                  paid                             |   | $      | 937,036 |   | $      | 937,036 |   |
| Interest                  received                    |   |   | 1,457   |   |   | 1,457   |   |
| Interest                  paid                        |   |   | 3,040   |   |   | 3,040   |   |
|                                                  |   |   |    |   |   |    |   |

----

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

**Overview**

**Three-month      periods ended March 31, 2008 and March 31, 2007**

**Results      of Operations**

|                                  |   | Three Months Ended March 31, |      |   |   |
|---------------------------------------|--------|--------------------------------------------------|-----------|--------|--------|
|                                  |   | 2008                                             |      | 2007   |   | Change |   | Change rate |   |
| Net                  Revenues         |   | $                                                | 3,563,425 |   | $      | 2,467,228 |   | $ | 1,096,197 |   |   | 44.43 | % |
| Cost                  of net revenues |   | $                                                | 1,141,745 |   | $      | 644,247 |   | $ | 497,498 |   |   | 77.22 | % |
| Gross                  Profit         |   | $                                                | 2,421,680 |   | $      | 1,822,981 |   | $ | 598,699 |   |   | 32.84 | % |
| Gross                  Margin         |   |                                             | 67.96     | %      | $      | 73.89 | % |   |   |   |   | -5.93 | % |
| Operating                  Income     |   | $                                                | 1,610,201 |   | $      | 1,421,888 |   | $ | 188,313 |   |   | 13.24 | % |
| Net                  Income           |   | $                                                | 1,336,802 |   | $      | 1,187,031 |   | $ | 149,771 |   |   | 12.62 | % |
| Net                  profit margin    |   |                                             | 37.51     | %      |   | 48.11 | % |   |   |   |   | -10.60 | % |

----

**Net      revenue**

|                                |   | Three                  Months Ended March 31, |      |
|-------------------------------------|--------|-----------------------------------------------|-----------|
|                                |   | 2008                                          |      | 2007 |   |
|                                |   | sales                                         |      | % of total sales |   | sales |   | % of total sales |   |
| PTS                                 |   | $                                             | 3,033,859 |   |   | 85.14 | % | $ | 2,467,228 |   |   | 100.00 | % |
| SADP                                |   | $                                             | 529,566   |   |   | 14.86 | % | $ | - |   |   | - |   |
| Total                  net revenues |   | $                                             | 3,563,425 |   |   | 100.00 | % | $ | 2,467,228 |   |   | 100.00 | % |

**Gross      Profit**

|                        |   | Three                Months Ended March 31, |      |
|-----------------------------|--------|---------------------------------------------|-----------|
|                        |   | 2008                                        |      | 2007 |   |
|                        |   | US$                                         |      | Gross profitmargin |   | US$ |   | Gross profitmargin |   |
|                        |   |                                        |      |   |   |   |   |   |   |
| Gross                Profit |   | $                                           | 2,421,680 |   |   | 67.96 | % | $ | 1,822,981 |   |   | 73.89 | % |

**Income      from Operations**

**Cost      of net revenues**

|                                |   | Three Months Ended March 31, |      |   |   |
|-------------------------------------|--------|--------------------------------------------------|-----------|--------|--------|
|                                |   | 2008                                             |      | 2007   |   | Change |   |
| Cost                of net revenues |   | $                                                | 1,141,745 |   | $      | 644,247 |   |   | 77.22 | % |

----

**Operating      Expenses**

|                                                 |   | Three Months Ended March 31, |    |   |   |
|------------------------------------------------------|--------|--------------------------------------------------|---------|--------|--------|
|                                                 |   | 2008                                             |    | 2007   |   | change |   |
| Selling                expenses                      |   | $                                                | 162,555 |   | $      | 13,580 |   |   | 1,097.02 | % |
| General                & Administrative expenses |   | $                                                | 648,924 |   | $      | 387,513 |   |   | 67.46 | % |
| Total                operating expenses              |   | $                                                | 811,479 |   | $      | 401,093 |   |   | 102.32 | % |

**Net      Income**

**Cash      and Cash Equivalents**

**Accounts      Receivable**

**Inventory**

| Item                          |   | March                31, 2008 |    | December 31,2007 |   | change  |   |
|-------------------------------|--------|-------------------------------|---------|-----------------------|--------|---------|--------|
| Raw                material   |   | $                             | 337,821 |                  | $      | 605,928 |   |   | -44.25 | % |
| Finished                goods |   | $                             | 538,386 |                  | $      | 161,005 |   |   | 234.39 | % |
| Total                         |   | $                             | 876,207 |                  | $      | 766,933 |   |   | 14.25 | % |

**Accounts      payable**

----

**Liquidity      and Capital Resources**

** **

|                                                                                              |   | Three Months Ended March 31, |       |                  |   |
|---------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|------------|----------------------------|--------|
|                                                                                              |   |                  2008                       |       |                  2007 |   |                  Change |   |
| Net                cash provided by (used in) operating activities                                |   | $                                                | 2,572,133  |                       | $      | 357,219 |   | $ | 2,214,914 |   |
| Net                cash provided by (used in) investing activities                                |   | $                                                | (2,198,185 | )                          | $      | 33,645 |   | $ | -2,231,830 |   |
| Net                cash provided by (used in) financing activities                                |   | $                                                | 0          |                       | $      | 0 |   | $ | 0 |   |
| Effect                of foreign currency translation on cash and cash                equivalents |   | $                                                | 262,621    |                       | $      | -49,918 |   | $ | 312,539 |   |
| cash                and cash equivalents at beginning of year                                     |   | $                                                | 5,820,100  |                       | $      | 1,749,048 |   | $ | 4,071,052 |   |
| Cash                and cash equivalents-end of year                                              |   | $                                                | 6,456,669  |                       | $      | 2,089,994 |   | $ | 4,366,675 |   |

**Operating      Activities**

**Investing      Activities**

**Critical      Accounting Policies**

*Impairment      of long-lived assets*
*Accounting      for Impairment of Long-Lived Assets to be Disposed Of*

----

*Inventories*.      Inventories consist of finished goods and raw materials, and stated at the      lower      of cost or market value. Substantially all inventory costs are determined using      the weighted average basis. Finished goods are comprised of direct materials,      direct labor and an appropriate proportion of overhead. The management regularly      evaluates the composition of its inventory to identify slow-moving and obsolete      inventories to determine if additional write-downs are required. Changes in      sales volumes due to unexpected economic or competitive conditions are among      the      factors that could materially affect the adequacy of such write down. Changes      in      sales volumes due to unexpected economic or competitive conditions are among      the      factors that could materially affect the adequacy of such write      down.

*Trade      receivable*

*Revenue      recognition*

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK.**

**ITEM      4T. CONTROLS AND PROCEDURES.**

**Evaluation      of Disclosure Controls and Procedures**

----

**Changes      in internal controls**

----

**PART      II**

**OTHER      INFORMATION**

**ITEM      1 - LEGAL PROCEEDINGS **

**ITEM      1A. RISK FACTORS **

**ITEM      2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**None**

**ITEM      3 - DEFAULTS UPON SENIOR SECURITIES **

**ITEM      4 - SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS**

**ITEM      5 - OTHER INFORMATION **

**ITEM      6 - EXHIBITS.**

| **Exhibit****No.** |   | **Description of Exhibit**                                                                                                      |
|--------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1               |   | Certification                by Chief Executive Officer pursuant to Sarbanes Oxley Act of 2002                Section                302. |
| 31.2               |   | Certification                by Chief Financial Officer pursuant to Sarbanes Oxley Act of 2002                Section                302. |
| 32.1               |   | Certification                by Chief Executive Officer pursuant to Sarbanes-Oxley Act of 2002                Section                906. |
| 32.2               |   | Certification                by Chief Financial Officer pursuant to Sarbanes-Oxley Act of 2002                Section                906. |

----

**SIGNATURES**

|                                       | **SUNWAY                GLOBAL, INC.** |
|--------------------------------------------|----------------------------------------|
|                                       |                                   |   |
| Dated:                  July 25, 2008 | By:                          | /s/                *Liu Bo* |
|                                       | Liu                Bo                  |
|                                       | Chief                Executive Officer |
|                                       |                                   |   |
| Dated:                  July 25, 2008 | By:                          | /s/*Samuel Sheng* |
|                                       | Samuel                Sheng            |
|                                       | Chief                Financial Officer |

----