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	<title>PR Newswire Asia All News</title>
	<link>http://www.prnasia.com</link>
	<language>zh-CN</language>
	<copyright>prnasia.com</copyright>
	<generator>PR Newswire Asia</generator>
	<description><![CDATA[we tell your story to the world!]]></description>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100221411-1.html</link>
		<title>Suntech Selected to Power Taiwan's Largest Solar Power Plant</title>
		<author>PR Newswire Asia</author>
		
		<category>Energy/Natural Sources </category>
		
		<pubDate>Wed, 17 Mar 2010 12:30:00 +0800</pubDate>
		<guid>4028ee8c2769720901276a5c891f0011</guid>
		<description><![CDATA[- Recent Initiative Reflects Growing Demand Throughout Asia Pacific -

　　WUXI, China, March 17 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest producer of crystalline silicon photovoltaic modules, will supply solar panels for what will be the biggest solar power plant in Taiwan. Owned and operated by the Taiwan Power Company, and developed by Fortune Electric Co., Ltd., the new 4.7MW solar plant in Young'an, Kaohsiung, Taiwan, will nearly double the island's current installed solar capacity of about 5MW. 
　　"We chose Suntech modules for superior performance and reliability, as seen in utility-scale installations across Asia, Europe, and the Americas," said Liao Wen Sing, Vice President of Fortune Electric Co., Ltd. "We look forward to working with Suntech on this momentous project - hopefully the first of many large-scale solar plants in Taiwan."
　　Delivery of the 16,640 advanced polycrystalline modules, each with a peak power output of up to 280 watts, will begin in June 2010. The system is scheduled to start supplying decades of clean power in early 2011. The project is a milestone in Taiwan's efforts to raise renewable energy production capacity by more than 10GW in the next 20 years, diminish its reliance on imported fossil fuels, and to reduce carbon emissions to year-2000 levels by 2025. Given the island's abundant sunlight, solar is expected to comprise a substantial share of Taiwan's future energy portfolio. 
　　"We have great expectations for the entire region. Asia and the Pacific already account for about one-third of the world's total energy demand, although its per-capita consumption is far less than the world's average," said Roger Ye, Suntech's President of Asia Pacific, Middle East, and Africa (APMEA). "The region's booming populations, strong economic growth engines, and abundant sunlight represent an exciting opportunity for solar and for Suntech." According to a November 2009 report by the Asian Development Bank, energy demand in Asia and the Pacific will grow by an estimated 2.4 percent annually for the next twenty years, a cumulative 80% increase between 2005 and 2030. 
　　Suntech's industry-leading products have already been utilized all around the region, including in Japan, Indonesia, the Philippines, Australia, Korea, Thailand and mainland China, among others. Around the world, Suntech has delivered products to thousands of customers in more than 80 countries. This global track record is a key differentiator for the brand in both established and emerging solar markets, according to Suntech executives.
　　"The global nature of our operations and experience provides a unique competitive advantage as we grow in emerging Asian markets and around the world," said Dr. Zhengrong Shi, Chairman and CEO of Suntech. "We are working across borders and regions to power sustainable economic growth everywhere under the sun."

　　About Suntech Power
　　Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of crystalline silicon solar modules. Suntech designs, develops, manufactures, and markets premium quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers an extensive range of customer-centric innovations, including its patent-pending Pluto technology for crystalline silicon solar cells, which improves power output by up to 12% compared to conventional production methods, its Reliathon(TM) module and platform, the industry's first fully integrated utility-scale solar platform, and its broad range of building-integrated solar products. 
　　Suntech designs and delivers residential, commercial and utility-scale solar power systems in China and the United States. With regional headquarters in China, Switzerland and San Francisco and sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visit http://www.suntech-power.com .

　　Safe Harbor Statement 
　　This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements, and includes the delivery date of modules to the plant, the completion date of the plant, the ability of Taiwan to achieve its goals in renewable energy, and the growth of energy consumption in Asia and the Pacific. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. 

　　For more information, please contact:

　　For Suntech Power:
　　 Rory Macpherson
　　 Investor Relations Director
　　 Suntech Power Holdings Co., Ltd. 
　　 Tel:   +86-21-6288-5574
　　 Email: rory@suntech-power.com

　　 Walker E. Frost
　　 Senior Supervisor
　　 Marketing &amp; Communications
　　 Suntech Power Holdings Co., Ltd.
　　 Tel:   +86-21-6288-5574
　　 Email: walker.frost@suntech-power.com]]></description>
		<detail><![CDATA[- Recent Initiative Reflects Growing Demand Throughout Asia Pacific -

　　WUXI, China, March 17 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest producer of crystalline silicon photovoltaic modules, will supply solar panels for what will be the biggest solar power plant in Taiwan. Owned and operated by the Taiwan Power Company, and developed by Fortune Electric Co., Ltd., the new 4.7MW solar plant in Young'an, Kaohsiung, Taiwan, will nearly double the island's current installed solar capacity of about 5MW. 
　　"We chose Suntech modules for superior performance and reliability, as seen in utility-scale installations across Asia, Europe, and the Americas," said Liao Wen Sing, Vice President of Fortune Electric Co., Ltd. "We look forward to working with Suntech on this momentous project - hopefully the first of many large-scale solar plants in Taiwan."
　　Delivery of the 16,640 advanced polycrystalline modules, each with a peak power output of up to 280 watts, will begin in June 2010. The system is scheduled to start supplying decades of clean power in early 2011. The project is a milestone in Taiwan's efforts to raise renewable energy production capacity by more than 10GW in the next 20 years, diminish its reliance on imported fossil fuels, and to reduce carbon emissions to year-2000 levels by 2025. Given the island's abundant sunlight, solar is expected to comprise a substantial share of Taiwan's future energy portfolio. 
　　"We have great expectations for the entire region. Asia and the Pacific already account for about one-third of the world's total energy demand, although its per-capita consumption is far less than the world's average," said Roger Ye, Suntech's President of Asia Pacific, Middle East, and Africa (APMEA). "The region's booming populations, strong economic growth engines, and abundant sunlight represent an exciting opportunity for solar and for Suntech." According to a November 2009 report by the Asian Development Bank, energy demand in Asia and the Pacific will grow by an estimated 2.4 percent annually for the next twenty years, a cumulative 80% increase between 2005 and 2030. 
　　Suntech's industry-leading products have already been utilized all around the region, including in Japan, Indonesia, the Philippines, Australia, Korea, Thailand and mainland China, among others. Around the world, Suntech has delivered products to thousands of customers in more than 80 countries. This global track record is a key differentiator for the brand in both established and emerging solar markets, according to Suntech executives.
　　"The global nature of our operations and experience provides a unique competitive advantage as we grow in emerging Asian markets and around the world," said Dr. Zhengrong Shi, Chairman and CEO of Suntech. "We are working across borders and regions to power sustainable economic growth everywhere under the sun."

　　About Suntech Power
　　Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of crystalline silicon solar modules. Suntech designs, develops, manufactures, and markets premium quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers an extensive range of customer-centric innovations, including its patent-pending Pluto technology for crystalline silicon solar cells, which improves power output by up to 12% compared to conventional production methods, its Reliathon(TM) module and platform, the industry's first fully integrated utility-scale solar platform, and its broad range of building-integrated solar products. 
　　Suntech designs and delivers residential, commercial and utility-scale solar power systems in China and the United States. With regional headquarters in China, Switzerland and San Francisco and sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visit http://www.suntech-power.com .

　　Safe Harbor Statement 
　　This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements, and includes the delivery date of modules to the plant, the completion date of the plant, the ability of Taiwan to achieve its goals in renewable energy, and the growth of energy consumption in Asia and the Pacific. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. 

　　For more information, please contact:

　　For Suntech Power:
　　 Rory Macpherson
　　 Investor Relations Director
　　 Suntech Power Holdings Co., Ltd. 
　　 Tel:   +86-21-6288-5574
　　 Email: rory@suntech-power.com

　　 Walker E. Frost
　　 Senior Supervisor
　　 Marketing &amp; Communications
　　 Suntech Power Holdings Co., Ltd.
　　 Tel:   +86-21-6288-5574
　　 Email: walker.frost@suntech-power.com]]></detail>
		<source><![CDATA[SOURCE  Suntech Power Holdings Co., Ltd.]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100042812-1.html</link>
		<title>Trayport(R) Exchange Systems Helps the J-Oil Exchange Add New Rack Fix, Float and Swap Contracts</title>
		<author>PR Newswire Asia</author>
		
		<category>Energy/Natural Sources </category>
		
		<category>Finance</category>
		
		<pubDate>Wed, 17 Mar 2010 10:00:00 +0800</pubDate>
		<guid>4028ee8c2766a90301276898a1220020</guid>
		<description><![CDATA[

　　HONG KONG, March 17 /PRNewswire-Asia/ -- Trayport(R) Exchange Systems today announced the addition of new oil contracts for Rack Fix, Float and Swap to the J-Oil Exchange (JOX). Trayport supplies JOX with its GlobalVision Exchange Trading System(SM) and the contracts added have extended the number traded on JOX to 609.

　　JOX was established in 2001 as a market place in which traders could buy and sell physical spot ("dated") and forward oil products and paper swaps. Based out of Singapore, it was set up as a new venture with approximately 40 trading companies, and around 80 traders. JOX offers different tiers of membership in terms of participation, and there are currently 29 active trading members covering almost all the main players in Japan, plus some with read-only trader access to prices on the exchange. The product portfolio includes gasoline, kerosene, gasoil, low sulphur additive oil, "A" class and high sulphur "C" fuel oil. These have delivery destinations of Chukyo, Ohnishi, Hanshine and East Japan. 

　　Trayport Exchange Systems was able to complete the addition of the additional oil contracts in 7 working days to take the new Rack Fix and Float contracts (70 in total) from concept though implementation and testing to deployment. Trayport has worked with JOX since 2007 and the recent project was completed by Trayport's team based in its Hong Kong regional office.

　　"We believe JOX's model for offering domestic oil contracts electronically has been proven a successful one. JOX is the only forward contracts oil exchange using electronic trading and it is the only successful IT led oil business in Japan. Trayport's help in achieving this has therefore been crucial," said Kazunori Yamamoto, Chief Operating Officer of JOX and Corporate Executive Officer of Showa Shell Sekiyu KK. "Trayport's GlobalVision Exchange Trading System represents a $1mn difference in potential revenue gains from our old system, which is a substantial benefit."

　　For 2010, JOX wants to add more capability and in doing so increase membership above its 29 main members. These 29 members are the largest corporate trading companies in Japan. To increase membership further will mean JOX targeting small to medium size trading companies and wholesalers. 

　　JOX is also starting to initiate links to clearing houses. JOX expects to see the first cleared transactions on its exchange from the third quarter 2010. Trayport is assisting JOX by building links to clearing systems and also by developing a system to offer bilateral position keeping, a necessity for those hedging physical oil forwards on JOX.

　　Jeremy Harris, VP for Asia Pacific at Trayport, said, "We looked carefully at how we could support JOX to produce a fully integrated front and back office system to allow the exchange to develop as it needs. Key features of the Trayport Exchange Trading System include its multi-asset class capabilities, the ability to support cleared and over-the-counter (OTC) markets, integration capabilities for straight through processing, flexibility and scalability. This provides JOX with the capacity to add new contracts and so increase membership numbers.

　　Mr. Harris concluded, "The introduction of clearing links for JOX is an exciting opportunity that will complement and strengthen JOX's existing position as a significant player in the oil industry. We are proud to partner and assist JOX. Trayport's Exchange Trading System has allowed JOX to continually adapt to meet the needs of its customers and markets in the largest domestic oil market in Asia. We look forward to continuing to work closely with JOX over coming years."

　　 For more information please contact:

　　 Trayport: 
　　 Marcel Kay
　　 Tel:   +44-207-960-5500
　　 Email: marcel.kay@trayport.com

]]></description>
		<detail><![CDATA[

　　HONG KONG, March 17 /PRNewswire-Asia/ -- Trayport(R) Exchange Systems today announced the addition of new oil contracts for Rack Fix, Float and Swap to the J-Oil Exchange (JOX). Trayport supplies JOX with its GlobalVision Exchange Trading System(SM) and the contracts added have extended the number traded on JOX to 609.

　　JOX was established in 2001 as a market place in which traders could buy and sell physical spot ("dated") and forward oil products and paper swaps. Based out of Singapore, it was set up as a new venture with approximately 40 trading companies, and around 80 traders. JOX offers different tiers of membership in terms of participation, and there are currently 29 active trading members covering almost all the main players in Japan, plus some with read-only trader access to prices on the exchange. The product portfolio includes gasoline, kerosene, gasoil, low sulphur additive oil, "A" class and high sulphur "C" fuel oil. These have delivery destinations of Chukyo, Ohnishi, Hanshine and East Japan. 

　　Trayport Exchange Systems was able to complete the addition of the additional oil contracts in 7 working days to take the new Rack Fix and Float contracts (70 in total) from concept though implementation and testing to deployment. Trayport has worked with JOX since 2007 and the recent project was completed by Trayport's team based in its Hong Kong regional office.

　　"We believe JOX's model for offering domestic oil contracts electronically has been proven a successful one. JOX is the only forward contracts oil exchange using electronic trading and it is the only successful IT led oil business in Japan. Trayport's help in achieving this has therefore been crucial," said Kazunori Yamamoto, Chief Operating Officer of JOX and Corporate Executive Officer of Showa Shell Sekiyu KK. "Trayport's GlobalVision Exchange Trading System represents a $1mn difference in potential revenue gains from our old system, which is a substantial benefit."

　　For 2010, JOX wants to add more capability and in doing so increase membership above its 29 main members. These 29 members are the largest corporate trading companies in Japan. To increase membership further will mean JOX targeting small to medium size trading companies and wholesalers. 

　　JOX is also starting to initiate links to clearing houses. JOX expects to see the first cleared transactions on its exchange from the third quarter 2010. Trayport is assisting JOX by building links to clearing systems and also by developing a system to offer bilateral position keeping, a necessity for those hedging physical oil forwards on JOX.

　　Jeremy Harris, VP for Asia Pacific at Trayport, said, "We looked carefully at how we could support JOX to produce a fully integrated front and back office system to allow the exchange to develop as it needs. Key features of the Trayport Exchange Trading System include its multi-asset class capabilities, the ability to support cleared and over-the-counter (OTC) markets, integration capabilities for straight through processing, flexibility and scalability. This provides JOX with the capacity to add new contracts and so increase membership numbers.

　　Mr. Harris concluded, "The introduction of clearing links for JOX is an exciting opportunity that will complement and strengthen JOX's existing position as a significant player in the oil industry. We are proud to partner and assist JOX. Trayport's Exchange Trading System has allowed JOX to continually adapt to meet the needs of its customers and markets in the largest domestic oil market in Asia. We look forward to continuing to work closely with JOX over coming years."

　　 For more information please contact:

　　 Trayport: 
　　 Marcel Kay
　　 Tel:   +44-207-960-5500
　　 Email: marcel.kay@trayport.com

]]></detail>
		<source><![CDATA[SOURCE  Trayport]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100220811-1.html</link>
		<title>GENIVI Alliance Marks First Anniversary with Unprecedented Accomplishments</title>
		<author>PR Newswire Asia</author>
		
		<category>Automotive</category>
		
		<pubDate>Wed, 17 Mar 2010 09:45:00 +0800</pubDate>
		<guid>4028ee8c27697209012769ca6a7e000c</guid>
		<description><![CDATA[- Innovative Alliance Driving Auto Industry Transformation

　　SAN ROMAN, California, March 17 /PRNewswire-Asia/ -- The GENIVI Alliance, an automotive and consumer electronics industry association driving the development and adoption of an open In-vehicle Infotainment (IVI) reference platform, celebrated its first anniversary, and its noteworthy accomplishments.
　　
　　- Launched at CeBIT in March 2009 with just eight charter members, the
　　  GENIVI Alliance now boasts over 60 members.

　　- Membership now spans the entire automotive ecosystem across all major
　　  geographies, including five OEMs, key first tier suppliers, and the 
　　  majority of semiconductor providers to the In-Vehicle Infotainment 
　　   (IVI) market.

　　- Through its membership, GENIVI is redefining the boundaries of the
　　  automotive ecosystem by engaging consumer electronics-related companies 
　　  in the IVI market.

　　- Also during its first year, the GENIVI Alliance, while maintaining its
　　  rapid growth, developed and released to members its first version of 
　　  the Alliance Platform just nine months after launch. The platform was
　　  demonstrated publicly for the first time at the Consumer Electronics 
　　  Show (CES) in Las Vegas in January.

　　Most importantly, the GENIVI Alliance has triggered the transformation of the automotive IVI industry and the way that IVI solutions will be developed in the future. With the continuing success of the Alliance, the acceptance of an open source software approach for automotive applications has reached new levels. By focusing on "pre-competitive" layers of the IVI software stack, GENIVI has facilitated cooperation among competing companies across the value chain.

　　"GENIVI’s performance for our first year has exceeded expectations thanks to the cooperation and efforts of our member companies," said Graham Smethurst, GENIVI president. "The short development time for the first GENIVI platform version and the CES demonstrations serve as tangible proof points that GENIVI’s approach will deliver on its promise of shortening product development cycles and reducing costs while maintaining high quality and supporting product differentiation. Our industry needs GENIVI now more than ever."

　　"GENIVI promises to permanently change the way the automotive industry develops products, values components, and collaborates to build both," said Roger Lanctot, senior analyst at Strategy Analytics. "The first products built around GENIVI code are just now entering development and industry participation in the alliance has grown from a small core of industry leaders to nearly universal participation."

　　In January 2010, ARM joined GENIVI to work directly with their licensees to ensure the applicability of the GENIVI stack across multiple microprocessor architectures. As GENIVI moves into its second year of operation the Board of Directors has been expanded and strengthened through the election of ARM, MontaVista Software and Renault.

　　About GENIVI Alliance
　　GENIVI Alliance is a non-profit industry association whose mission is to drive the broad adoption of an In-Vehicle Infotainment (IVI) open source development platform. GENIVI will accomplish this by aligning requirements, delivering reference implementations, offering certification programs and fostering a vibrant open source IVI community. GENIVI’s work will result in shortened development cycles, quicker time-to-market, and reduced costs for companies developing IVI equipment and software. GENIVI is headquartered in San Ramon, Calif. http://www.genivi.org.]]></description>
		<detail><![CDATA[- Innovative Alliance Driving Auto Industry Transformation

　　SAN ROMAN, California, March 17 /PRNewswire-Asia/ -- The GENIVI Alliance, an automotive and consumer electronics industry association driving the development and adoption of an open In-vehicle Infotainment (IVI) reference platform, celebrated its first anniversary, and its noteworthy accomplishments.
　　
　　- Launched at CeBIT in March 2009 with just eight charter members, the
　　  GENIVI Alliance now boasts over 60 members.

　　- Membership now spans the entire automotive ecosystem across all major
　　  geographies, including five OEMs, key first tier suppliers, and the 
　　  majority of semiconductor providers to the In-Vehicle Infotainment 
　　   (IVI) market.

　　- Through its membership, GENIVI is redefining the boundaries of the
　　  automotive ecosystem by engaging consumer electronics-related companies 
　　  in the IVI market.

　　- Also during its first year, the GENIVI Alliance, while maintaining its
　　  rapid growth, developed and released to members its first version of 
　　  the Alliance Platform just nine months after launch. The platform was
　　  demonstrated publicly for the first time at the Consumer Electronics 
　　  Show (CES) in Las Vegas in January.

　　Most importantly, the GENIVI Alliance has triggered the transformation of the automotive IVI industry and the way that IVI solutions will be developed in the future. With the continuing success of the Alliance, the acceptance of an open source software approach for automotive applications has reached new levels. By focusing on "pre-competitive" layers of the IVI software stack, GENIVI has facilitated cooperation among competing companies across the value chain.

　　"GENIVI’s performance for our first year has exceeded expectations thanks to the cooperation and efforts of our member companies," said Graham Smethurst, GENIVI president. "The short development time for the first GENIVI platform version and the CES demonstrations serve as tangible proof points that GENIVI’s approach will deliver on its promise of shortening product development cycles and reducing costs while maintaining high quality and supporting product differentiation. Our industry needs GENIVI now more than ever."

　　"GENIVI promises to permanently change the way the automotive industry develops products, values components, and collaborates to build both," said Roger Lanctot, senior analyst at Strategy Analytics. "The first products built around GENIVI code are just now entering development and industry participation in the alliance has grown from a small core of industry leaders to nearly universal participation."

　　In January 2010, ARM joined GENIVI to work directly with their licensees to ensure the applicability of the GENIVI stack across multiple microprocessor architectures. As GENIVI moves into its second year of operation the Board of Directors has been expanded and strengthened through the election of ARM, MontaVista Software and Renault.

　　About GENIVI Alliance
　　GENIVI Alliance is a non-profit industry association whose mission is to drive the broad adoption of an In-Vehicle Infotainment (IVI) open source development platform. GENIVI will accomplish this by aligning requirements, delivering reference implementations, offering certification programs and fostering a vibrant open source IVI community. GENIVI’s work will result in shortened development cycles, quicker time-to-market, and reduced costs for companies developing IVI equipment and software. GENIVI is headquartered in San Ramon, Calif. http://www.genivi.org.]]></detail>
		<source><![CDATA[SOURCE  GENIVI Alliance]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100042212-1.html</link>
		<title>Cable&amp;Wireless Worldwide and PLDT Strengthen Partnership to Serve Growing Global Telecom Needs of Philippine Enterprises</title>
		<author>PR Newswire Asia</author>
		
		<category>Finance</category>
		
		<category>IT</category>
		
		<pubDate>Wed, 17 Mar 2010 09:00:00 +0800</pubDate>
		<guid>4028ee8c2765857201276658f14b0024</guid>
		<description><![CDATA[
Extends and expands seven-year partnership to tap growing market for business process outsourcing services 

　　MANILA, Philippines, March 17 /PRNewswire-Asia/ -- Cable&amp;Wireless Worldwide and Philippine Long Distance Telecommunications (PLDT) today announced an expansion of their seven-year long strategic partnership to deliver Multi-Protocol Label Switching (MPLS) network connectivity and value-added telecommunications services to enterprise customers in one of the fastest growing economies in Asia today.

　　According to Bangko Sentral (the Central Bank of the Philippines) data released in January 2010, the Philippines logged growth in 36 consecutive quarters at the end of 2009. Telecommunications is a key growth opportunity as demand for broadband services grows. Specifically, there is significant demand from global providers of Business Process Outsourcing (BPO) services for IP-based Contact Centre (IPCC) solutions and support services into and out of the Philippines. 

　　Cable&amp;Wireless Worldwide works with some of the leading providers of BPO services based in India and across the Asia Pacific to provide them high-speed, predictable and secure connectivity services. The company has invested into a resilient and secure network infrastructure in the Philippines - with Points of Presence (POPs) in Manila City and Pasig. As a part of its agreement with PLDT, Cable&amp;Wireless Worldwide will enhance its existing suite of on-net Virtual Private Network (VPN) Quality-of-service (QoS) offerings for its customers in the Philippines.  

　　Cable&amp;Wireless Worldwide and PLDT are also enhancing the international connectivity of their international POPs in Manila by adding an Asia America Gateway (AAG) international leased line trunk between Philippines and Hong Kong. With AAG installed in PLDT's Cable Landing Station in Bauang, La Union, this is ideal for diversity from other existing cable landing stations in the Philippines in response to the growing demand for bandwidth and to provide resiliency versus possible future disasters that may threaten telecom operations similar to the past Taiwan earthquake.  

　　Nerissa S. Ramos, First Vice President of PLDT, said, "The partnership between Cable&amp;Wireless Worldwide and PLDT successfully serves enterprise customers seeking secure high speed global connectivity in and out of the Philippines. Our growing partnership is a clear sign of the inherent economic potential within the Philippines market and that our customer focused investments into the market are driving success."

　　Diarmid Massey, Vice President, International Carrier Services - Global Markets, Cable&amp;Wireless Worldwide, said, "PLDT has a long heritage and a proven track record of efficient and consistent delivery to customers. The partnership extension will allow us to provide next-generation telecommunications solutions that meet the emerging needs of global and local corporations in the Philippines."

　　For more information, please contact:

　　Media Contact
　　Imelda Tan
　　Communications Specialist, Asia Pacific
　　Cable&amp;Wireless Worldwide
　　Tel:   +65-6477-5821
　　Email: Imelda.Tan@cw.com
]]></description>
		<detail><![CDATA[
Extends and expands seven-year partnership to tap growing market for business process outsourcing services 

　　MANILA, Philippines, March 17 /PRNewswire-Asia/ -- Cable&amp;Wireless Worldwide and Philippine Long Distance Telecommunications (PLDT) today announced an expansion of their seven-year long strategic partnership to deliver Multi-Protocol Label Switching (MPLS) network connectivity and value-added telecommunications services to enterprise customers in one of the fastest growing economies in Asia today.

　　According to Bangko Sentral (the Central Bank of the Philippines) data released in January 2010, the Philippines logged growth in 36 consecutive quarters at the end of 2009. Telecommunications is a key growth opportunity as demand for broadband services grows. Specifically, there is significant demand from global providers of Business Process Outsourcing (BPO) services for IP-based Contact Centre (IPCC) solutions and support services into and out of the Philippines. 

　　Cable&amp;Wireless Worldwide works with some of the leading providers of BPO services based in India and across the Asia Pacific to provide them high-speed, predictable and secure connectivity services. The company has invested into a resilient and secure network infrastructure in the Philippines - with Points of Presence (POPs) in Manila City and Pasig. As a part of its agreement with PLDT, Cable&amp;Wireless Worldwide will enhance its existing suite of on-net Virtual Private Network (VPN) Quality-of-service (QoS) offerings for its customers in the Philippines.  

　　Cable&amp;Wireless Worldwide and PLDT are also enhancing the international connectivity of their international POPs in Manila by adding an Asia America Gateway (AAG) international leased line trunk between Philippines and Hong Kong. With AAG installed in PLDT's Cable Landing Station in Bauang, La Union, this is ideal for diversity from other existing cable landing stations in the Philippines in response to the growing demand for bandwidth and to provide resiliency versus possible future disasters that may threaten telecom operations similar to the past Taiwan earthquake.  

　　Nerissa S. Ramos, First Vice President of PLDT, said, "The partnership between Cable&amp;Wireless Worldwide and PLDT successfully serves enterprise customers seeking secure high speed global connectivity in and out of the Philippines. Our growing partnership is a clear sign of the inherent economic potential within the Philippines market and that our customer focused investments into the market are driving success."

　　Diarmid Massey, Vice President, International Carrier Services - Global Markets, Cable&amp;Wireless Worldwide, said, "PLDT has a long heritage and a proven track record of efficient and consistent delivery to customers. The partnership extension will allow us to provide next-generation telecommunications solutions that meet the emerging needs of global and local corporations in the Philippines."

　　For more information, please contact:

　　Media Contact
　　Imelda Tan
　　Communications Specialist, Asia Pacific
　　Cable&amp;Wireless Worldwide
　　Tel:   +65-6477-5821
　　Email: Imelda.Tan@cw.com
]]></detail>
		<source><![CDATA[SOURCE  Cable&Wireless Worldwide]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100219511-1.html</link>
		<title>China Finance Online Reports Fourth Quarter and Fiscal Year 2009 Financial Results</title>
		<author>PR Newswire Asia</author>
		
		<category>Finance</category>
		
		<category>IT</category>
		
		<pubDate>Wed, 17 Mar 2010 06:00:00 +0800</pubDate>
		<guid>4028ee8c2766a903012768885c53001e</guid>
		<description><![CDATA[
-- Registered User Accounts Increased to 14 Million, Q4 Net Operating Cash-Flow Reached $7.4 million --

　　BEIJING, March 16 /PRNewswire-Asia/ -- China Finance Online Co., Ltd. ("China Finance Online"," the Company") (Nasdaq: JRJC), the technology-driven, user-focused market leader in China in providing vertically integrated financial services and products including news, data, analytics and brokerage through web portals, software systems, and mobile handsets, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2009.

　　2009 Financial and Operating Highlights and 2010 Business Outlook
　　-- Registered user accounts increased to 14 million as of Q4 2009; the 
　　   company expects to increase registered user accounts to 20 million by 
　　   year end 2010, up 43% year-over-year;
　　-- Net revenues in the fourth quarter of 2009 reached $15 million; total 
　　   net revenues for 2009 were $53.6 million; the company expects to 
　　   generate net revenues ranging from $56 million to $62 million in the 
　　   2010 year;
　　-- Excluding stock-based compensation expenses, non-GAAP net loss was $1.1 
　　   million for Q4 2009 and non-GAAP net income was $0.4 million for the 
　　   2009 year; non-GAAP net income is anticipated to be between $2 million
　　   to $4 million for the 2010 year; 
　　-- Net loss was $2.7 million for the fourth quarter of 2009 and $6.2 
　　   million for the 2009;
　　-- As of December 31, 2009, total cash and cash equivalents were $107.4 
　　   million.
　　-- Net cash provided by operating activities was $7.4 million in Q4 2009,
　　   and $16.3 million in fiscal year of 2009; the company intends to 
　　   achieve positive free cash flow of over $8 million in 2010, excluding 
　　   potential M&amp;A activities.

　　Fourth Quarter Results

　　As of December 31, 2009, registered user accounts on the Company's web portals (http://www.jrj.com and http://www.stockstar.com ) were 14 million, compared to 11.3 million at the 2008 year end, and 13.1 million at the end of September 2009. Active paid subscribers were approximately 117,900 as of December 31, 2009, compared to approximately 116,200 at the 2008 year end and approximately 112,000 at the end of September 2009. As of December 31, 2009, the Company's Hong Kong-based brokerage service, Daily Growth, had approximately 1,650 customer accounts.

　　Net revenues for the fourth quarter of 2009 were $15.0 million, compared to $15.3 million for the same period in 2008 and compared with $14.6 million for the third quarter of 2009, down slightly compared with a year ago and up 2.9% quarter-over-quarter. 

　　For the fourth quarter of 2009, gross profit was $12.7 million, up 1.8% from $12.5 million for the same period in 2008 and up 3.7% from $12.3 million for the 2009 third quarter. Gross margin for the fourth quarter of 2009 was 84.8% compared to 81.8% for the same period in 2008 and versus 84.2% in the third quarter of 2009. Gross margin for the quarter increased from the same period last year due to a product mix change.  

　　General and administrative expenses for the 2009 fourth quarter were $4.0 million, in line with $3.9 million for the same period of 2008 and down from $5.0 million for the third quarter of 2009. The decline in general and administrative expenses was primarily related to effective cost control measures and the further streamlining of existing operations. Excluding stock-based compensation of $1.5 million, adjusted general and administrative expenses were $2.5 million for the 2009 fourth quarter, compared to $1.8 million in the fourth quarter of 2008 and $3.4 million in the third quarter of 2009, reflecting the corresponding stock-based compensation excluded in those quarters.

　　Sales and marketing expenses for the fourth quarter were $8.5 million compared with $3.8 million in fourth quarter in 2008 and $6.4 million in the 2009 third quarter. The increase in sales and marketing expenses was due to a special year-end bonus paid to the sales and marketing team for their achievements in the challenging environment in 2009 and the expenses related to the expansion of current programs and new initiatives to acquire new registered users and enhance the company's brand equity.  

　　Product development expenses for the fourth quarter of 2009 were $2.9 million compared with $1.9 million in the same quarter in 2008 and $2.9 million in the third quarter of 2009. In the quarter the Company continued its efforts in integrating product teams, and centralizing data management and software development organizations to streamline operations, which will lead to improved efficiency in 2010.

　　Total operating expenses for the fourth quarter of 2009 were $15.4 million compared with $9.6 million in the fourth quarter of 2008 and $14.3 million in the third quarter of 2009. The increase is mostly related to higher sales and marketing expenses in the 2009 fourth quarter. Excluding total stock-based compensation of $1.6 million, adjusted operating expenses were $13.8 million in the 2009 fourth quarter compared with adjusted operating expenses of $7.5 million for the fourth quarter of 2008, and $12.7 million in the third quarter of 2009. 

　　Non-GAAP loss from operations, which excluded stock-based compensation expenses, was $1.0 million for the 2009 fourth quarter, compared to non-GAAP income from operations of $5.4 million for the same quarter of 2008. The GAAP loss from operations for the fourth quarter of 2009 was $2.6 million, compared to income of $3.3 million in the fourth quarter of 2008.  

　　Non-GAAP net loss attributable to China Finance Online, which excluded all the stock-based compensation expenses of $1.6 million, was $1.1 million for the 2009 fourth quarter, compared to non-GAAP net income of $8.3 million for the same quarter of 2008, and non-GAAP net income of $0.6 million for the third quarter of 2009. GAAP net loss attributable to China Finance Online for the fourth quarter of 2009 was $2.7 million compared with a net income of $6.2 million in the 2008 fourth quarter and compared with a net loss of $1.0 million in the third quarter of 2009.

　　As of December 31, 2009, total cash and cash equivalents were $107.4 million. Shareholders' equity was $97.4 million. Net cash provided by operating activities for the 2009 fourth quarter was $7.4 million.  

　　Deferred revenue at the end of the fourth quarter of 2009, which represents prepaid service fees made by customers for subscription services that have not been rendered as of December 31, 2009, was $45.2 million.

　　Mr. Zhiwei Zhao, Chief Executive Officer of China Finance Online, commented, "We are pleased to see our fourth quarter top line exceeded the high end of our quarterly guidance of $14 million. During 2009, the unlawful, poor-quality copycats distorted the marketplace, which caused some confusion among our potential customers and negatively affected our expansion in the subscription business. However, we are encouraged to see that, beginning in 2010, the Chinese government has stepped up with more stringent regulations, which can be very constructive for the sustainability and overall health of the sector in the long run."

　　Mr. Zhao continued, "In the fourth quarter, we not only continued to make progress in integrating and streamlining all our operations to improve efficiency and lower costs, but also undertook substantial efforts in our product development, web portal operations and sales and marketing to focus on new registered user expansion. We are pleased to see that as a result of our above efforts, in the fourth quarter we optimized server utilization and lowered overall headcount as well as improved top line and increased both registered user accounts and paid subscribers."

　　"On the strategic partnership front, we signed with HKEx Information Service to become the first financial portal from China to provide free real-time quotes of securities traded on the Hong Kong Stock Exchange. We also successfully launched two applications for China's largest online shopping website, Taobao.com, and sealed a partnership with the leading 3G mobile operator, China Unicom, to become the exclusive financial content provider for its iPhone mobile portal. We are confident that all these strategic alignments will expand our registered user base and propel our paid subscription service growth for the future," Mr. Zhao concluded.

　　Fiscal Year 2009 Financial Results 

　　Total net revenues for the year ended on December 31, 2009, were $53.6 million compared to $56.2 million for 2008. 

　　The gross profit was $45.5 million for 2009 compared to $46.9 million for 2008. For 2009, the gross margin was 84.8% compared with 83.3% in 2008. The gross margin increased due to a product mix change. 

　　GAAP loss from operations in 2009 was $7.8 million compared with operating income of $12.8 million in 2008. Total operating expenses were $53.8 million in 2009 compared with $34.5 million a year ago. The higher operating expenses were primarily related to increased headcount in sales and marketing, product development and web portal operations as well as additional marketing expenses associated with partnership expansion. Non-GAAP loss from operations in 2009 was $1.2 million compared with Non-GAAP income of $20.8 million in 2008.

　　The GAAP net loss attributable to China Finance Online was $6.2 million for the 2009 year compared to a net profit of $19.0 million for 2008, with fully diluted loss per ADS of $0.30 in 2009 versus fully diluted earnings per ADS of $0.84 in 2008. Non-GAAP annual net income attributable to China Finance Online was $0.4 million in 2009. 

　　Net cash flow from operations in 2009 was 16.3 million, compared to 26.3 million 2008.
 
　　Latest Developments

　　In October 2009, China Finance Online announced that it entered into a definitive agreement with HKEx Information Services Limited (HKEx-IS), a business subsidiary of Hong Kong Exchanges and Clearing Limited Group whereby, http://www.JRJ.com , would become the first HKEx-IS designated finance portal in mainland China to provide free real-time basic market quotes to mainland China investors. JRJ.com is authorized to provide free real-time quotes of securities traded on the Hong Kong Stock Exchange. 

　　In October 2009, the Company established a strategic partnership with Taobao.com ("Taobao"), an Alibaba.com company. As the largest online shopping website in China, Taobao currently has over 145 million registered online users. Alitalk, Taobao's instant messenger platform, features 123 million registered users. Through this partnership, China Finance Online successfully developed a plug-in application for Alitalk and introduced an online trading simulation platform. Both applications are well received by Taobao's users.

　　In October 2009, China Finance Online formed a strategic partnership with China Unicom to become the exclusive content provider of financial news and market data for its 3G mobile portal (http://iphone.wo.com.cn ). China Unicom is the designated mobile carrier to offer the iPhone and its related 3G data services in China. The beta site went live in late October 2009 and Phase II has been up and running since March 12, 2010.

　　In March 2010, Mr. Alex Xu, the Company's Chief Strategy Officer, resigned to pursue other interests. There is no disagreement between Mr. Xu and the Company. Subsequently, Mr. Jeff Wang, Chief Financial Officer of the Company undertook the responsibilities previously assumed by Alex Xu.

　　"On behalf of everyone at China Finance Online, I would like to thank Alex for his contributions to the Company. We wish him all the best for his new pursuit," Mr. Zhiwei Zhao, Chief Executive Officer of China Finance Online, commented.

　　Business Outlook

　　The Company currently expects to increase the registered user accounts to 20 million by year end 2010, up 43% from 14 million at the year end of 2009, and up 82% from 11 million at the year end of 2008, respectively. 

　　The Company also expects to generate net revenues in an amount ranging from $56 million to $62 million for the 2010 year. Non-GAAP net income, which is defined as net income excluding stock-based compensations, for the 2010 year is anticipated to be between $2 million and $4 million. The Company intends to achieve positive free cash flow of over $8 million in 2010, excluding potential M&amp;A activities. Management has decided to discontinue quarterly guidance effective immediately and will periodically update the 2010 annual guidance. 

　　The above forecast reflects the Company's current and preliminary view, which is subject to change. A number of important factors including, but not limited to, fluctuation in the Chinese stock market, could cause the actual results to differ materially from those contained in the above guidance.

　　Mr. Zhiwei Zhao, Chief Executive Officer of China Finance Online, stated, "The most difficult two years are now behind us. With the strong advancement of the Chinese economy, the rapid growth of disposable income and individuals' savings, and individual investors' on-going investment interest, we see a promising 2010 ahead of us. With the IPO activities, or massive daily trading volume, or the newly introduced index futures investment products as well as potential shorting and margin mechanisms coming into play, we are very pleased to see Chinese stock exchanges are emerging as a major force in the global financial markets. Being the market leader with superior brand name, sustainable resources and highly-scalable operations, China Finance Online is well positioned to benefit from this favorable macro trend in the long run."  

　　"We also anticipate that 2010 will be a better year, as more government regulation of those unlawful copycats will help improve the overall competitive landscape. To further service 172 million investment trading accounts in China, we continue to build out our brand recognition through our robust online presence, superior product portfolio, and high-quality financial database. We continue to seek high-caliber strategic partnerships to help grow our registered user base, which will serve as the growth engine for our paid subscription business and other value-added services in the future. With our solid cash position and strong capability of cash generation, we have the financial resources to support our plan to expand registered user base and strengthen product and service offerings, which will further extend our market leadership," Mr. Zhao concluded.

　　Conference Call Information

　　The Company will host a conference call and a simultaneous webcast, on March 16, 2010 at 8:00 p.m. Eastern Daylight Time / March 17, 2010 8:00 a.m. Beijing Time. Interested parties may participate in the conference call by dialing approximately five to ten minutes before the call start time at U.S. Toll Free Number +1-877-847-0047, Hong Kong Number +852-3006-8101, or China Toll free Number 800 876 5011, and pass code for all regions is 610327.

　　A replay of the conference call will be available from approximately 10:00PM Eastern Daylight Time on March 16, 2010 (or 10:00AM March 17, 2010 in the Beijing/HK time zone) to 10:00PM Eastern Daylight Time on March 23, 2010 (or 10:00AM March 24, 2010 in the Beijing/HK time zone). The dial-in details for the replay: U.S. Toll Free Number +1-866-572-7808, Hong Kong Dial In Number +852- 3012-8000, and Access code: 610327. 

　　The conference call will also be available on webcast live and replay at: http://tinyurl.com/yfmle4g . The call will be archived for 12 months at this website.

　　About China Finance Online

　　China Finance Online Co. Limited is the technology-driven, user-focused market leader in China in providing vertically integrated financial services and products including news, data, analytics and brokerage through web portals, software systems, and mobile handsets. Through its web portals, http://www.jrj.com and http://www.stockstar.com , the Company provides individual users with subscription-based service packages that integrate financial and listed company data, information and analytics from multiple sources with features and functions such as data and information search, retrieval, delivery, storage and analysis. These features and functions are delivered through proprietary software available by download, through internet or through mobile handsets. Through its subsidiary, Genius, the Company provides financial information database and analytics to institutional customers including domestic securities and investment firms. Through its subsidiary, Daily Growth, the Company provides securities brokerage services for stocks listed on Hong Kong Stock Exchange.

　　Safe Harbor Statement

　　This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's strategic operational plans and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The Company believes that the Chinese economy continues to expand; however, the expansion may be uneven with certain sectors being affected more than others with resulting volatility in the Chinese equity market which could influence the Company's operating results in the coming quarters. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

　　Non-GAAP Measures

　　To supplement the unaudited condensed consolidated financial information presented in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"), the Company uses non-GAAP measures of income (loss)from operations, net income (loss), net income (loss) per share and net income (loss) per ADS, which are adjusted from results based on GAAP to exclude the stock-based compensation expenses due to the adoption of authoritative guidance on stock-based compensation, previously issued as SFAB123R, now Codified in Accounting Standards Codification Topic - ASC 718, which became effective on January 1, 2006. Adjusted EBITDA (non-GAAP) is defined as earnings before interest, taxes, depreciation, amortization, other non-operating income (loss), and stock-based compensation expenses. The non-GAAP financial measures are provided to enhance the investors' overall understanding of the Company's current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and therefore deems it important to provide all of this information to investors.

　　For more information, please contact:

　　In China:
　　 Lily Zhang 
　　 Investor Relations 
　　 China Finance Online Co., Ltd.
　　 Email: ir@jrj.com

　　In the United States:
　　 Kevin Theiss
　　 Grayling
　　 Tel:   +1-646-284-9409
　　 Email: kevin.theiss@grayling.com



　　　　　　　　　　　　　　　　 Tables Follow


　　　　　　　　　　　　China Finance Online Co. Limited
　　　　　　　　 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
　　　　　　　　　　　　 (In thousands of U.S. dollars)

　　　　　　　　　　　　　　　　　　　　　　 Dec. 31, 2009　　 Dec. 31, 2008
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  as adjusted (1)
　　Assets
　　Current assets:
　　　　  RMB account　　　　　　　　　　　　　　   93,754　　　　　　80,308
　　　　  Foreign currency account　　　　　　　　  13,637　　　　　　17,236
　　   Cash and cash equivalents　　　　　　　　   107,391　　　　　　97,544
　　   Trust bank balances held on behalf
　　　　of customers　　　　　　　　　　　　　　　　13,310　　　　　　 2,010
　　   Advance to employees　　　　　　　　　　　　　　 --　　　　　　   161
　　   Accounts receivable, net　　　　　　　　　　  5,370　　　　　　 2,876
　　   Short term investment　　　　　　　　　　　　　　68　　　　　　　　--
　　   Prepaid expenses and other current
　　　　assets　　　　　　　　　　　　　　　　　　   4,281　　　　　　 8,582
　　   Deferred tax assets, current　　　　　　　　  3,237　　　　　　 2,526
　　Total current assets　　　　　　　　　　　　   133,657　　　　   113,699
　　   Cost method investment　　　　　　　　　　　　1,480　　　　　　 1,480
　　   Property and equipment, net　　　　　　　　  10,268　　　　　　 8,589
　　   Acquired intangible assets, net　　　　　　   4,779　　　　　　 3,473
　　   Rental deposits　　　　　　　　　　　　　　　　 725　　　　　　   592
　　   Goodwill　　　　　　　　　　　　　　　　　　 12,603　　　　　　12,019
　　   Deferred tax assets, non-current　　　　　　  1,879　　　　　　 1,754
　　   Other deposits　　　　　　　　　　　　　　　　  219　　　　　　   218
　　Total assets　　　　　　　　　　　　　　　　   165,610　　　　   141,824
　　
　　Liabilities and shareholders' equity
　　Current liabilities:
　　   Deferred revenue, current　　　　　　　　　　30,620　　　　　　28,202
　　   Accrued expenses and other current
　　　　liabilities　　　　　　　　　　　　　　　　  8,243　　　　　　 4,897
　　   Amount due to customers for trust 
　　　　bank balances held on behalf of  
　　　　customers　　　　　　　　　　　　　　　　   13,310　　　　　　 2,010
　　   Accounts payable　　　　　　　　　　　　　　　　102　　　　　　   222
　　   Income taxes payable　　　　　　　　　　　　　　124　　　　　　   142
　　Total current liabilities　　　　　　　　　　   52,399　　　　　　35,473
　　   Deferred tax liability, non-　　  
　　　　current　　　　　　　　　　　　　　　　　　　　995　　　　　　   623
　　   Deferred revenue, non-current　　　　　　　　14,547　　　　　　 8,786
　　Total liabilities　　　　　　　　　　　　　　   67,941　　　　　　44,882
　　Noncontrolling interests　　　　　　　　　　　　   264　　　　　　　　--
　　Total shareholders' equity　　　　　　　　　　  97,405　　　　　　96,942
　　Total liabilities and shareholders'  
　　 equity　　　　　　　　　　　　　　　　　　　　165,610　　　　   141,824

　　(1) Amount in relation to noncontrolling interest, formerly named minority 
　　　　interest, as of December 31, 2008 is reclassified in accordance with 
　　　　ASC 810 (formerly FASB Statement No. 160, Noncontrolling Interest), 
　　　　which was adopted by the Company on January 1, 2009.



　　　　　　　　　　　　 China Finance Online Co. Limited　　　　　　　　　　 
　　　　　　　　 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS　　　　　　  
　　　　　　  (in thousands of U.S. dollars, except per share data)　　　　   

　　　　　　　　　　　　　　 Three months ended　　　　　　Year ended Dec. 31 
　　　　　　　　　　   Dec. 31,　　Dec. 31,　　Sep. 30,　　　　 
　　　　　　　　　　　　 2009　　　　2008　　　　2009　　   2009　　　　 2008　　 
　　　　　　　　　　　　　　　　 as adjusted　　　　　　　　　　   as adjusted 
　　Net revenues　　　　14,995　　  15,281　　  14,577　　  53,606　　  56,243 
　　Cost of revenues　　(2,275)　　 (2,781)　　 (2,309)　　 (8,147)　　 (9,367)
　　Gross profit　　　　12,720　　  12,500　　  12,268　　  45,459　　  46,876 
　　Operating expenses　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　General and　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 administrative
　　 (includes share-
　　 based compensation　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 expenses of $1,556,
　　 $2,065, $1,599,
　　 $6,436 and $7,768,
　　 respectively)　　  (4,024)　　 (3,911)　　 (5,004)　　(16,982)　　(15,371)
　　Sales and
　　 marketing　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (includes　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 share-based
　　 compensation　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 expenses　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 of $18, $19,
　　 $21, $108　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 and $213,　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 respectively)　　  (8,493)　　 (3,789)　　 (6,416)　　(26,095)　　(13,521)
　　Product
　　 development　　　　　　　　　　　　　　　　　　　　　　　　  
　　 (includes　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 share-based 
　　 compensation　　　　　　　　　　　　　　　　　　　　　　 
　　 expenses of 
　　 $10, $12, $13,
　　 $57 and $59,　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 respectively)　　  (2,902)　　 (1,906)　　 (2,873)　　(10,754)　　 (5,635)
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Total operating
　　 expenses　　　　  (15,419)　　 (9,606)　　(14,293)　　(53,831)　　(34,527)
　　Subsidy income　　　　 132　　　　 437　　　　 219　　　　 567　　　　 437 
　　Income (loss) from　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 operations　　　　 (2,567)　　  3,331　　  (1,806)　　 (7,805)　　 12,786 
　　Interest income　　　　372　　　　 404　　　　 379　　   1,352　　   1,608 
　　Investment gain
　　 (loss)　　　　　　　　 41　　　　 (59)　　　　 --　　　　  41　　　　(135)
　　Other loss, net　　   (148)　　　　(22)　　　　(70)　　   (258)　　　　(34)
　　Exchange gain
　　 (loss), net　　　　　　(6)　　   (123)　　　　  8　　　　   2　　   1,490 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Income (loss)
　　 before income
　　 tax benefit　　　　(2,308)　　  3,531　　  (1,489)　　 (6,668)　　 15,715 
　　Income tax
　　 benefit　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 (provision)　　　　  (357)　　  2,647　　　　 456　　　　 446　　   3,047 
　　Purchased pre-
　　 acquisition　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 earning　　　　　　　　--　　　　  --　　　　  --　　　　  --　　　　 227 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Net income (loss)   (2,665)　　  6,178　　  (1,033)　　 (6,222)　　 18,989 
　　Less: Net loss　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable to
　　 the noncontrolling
　　 interest　　　　　　   (2)　　　　 --　　　　  --　　　　  (2)　　　　 31 
　　Income (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 attributable to　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 China Finance
　　 Online Co.,　　　　　　　　　　　　　　　　　　　　　　
　　 Limited　　　　　　(2,667)　　  6,178　　  (1,033)　　 (6,224)　　 19,020 
　　Income (loss)
　　 per share　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　Basic　　　　　　　　(0.03)　　   0.06　　   (0.01)　　  (0.06)　　   0.19 
　　Diluted　　　　　　  (0.03)　　   0.06　　   (0.01)　　  (0.06)　　   0.17 
　　Income (loss)
　　 per ADS　　　　　　　　　　　　　　　　　　　　　　　　
　　Basic　　　　　　　　(0.13)　　   0.31　　   (0.05)　　  (0.30)　　   0.96 
　　Diluted　　　　　　  (0.13)　　   0.28　　   (0.05)　　  (0.30)　　   0.84 
　　Weighted average
　　 ordinary　　　　　　　　　　　　　　　　　　　　　　
　　 shares　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Basic　　　　  106,359,313  99,287,039 105,621,910 105,203,564  98,957,993 
　　Diluted　　　　106,359,313 109,417,794 105,621,910 105,203,564 112,984,532 
　　Weighted
　　 Average ADSs　　　　　　　　　　　　　　　　　　　　　　　　
　　Basic　　　　   21,271,863  19,857,408  21,124,382  21,040,713  19,791,599 
　　Diluted　　　　 21,271,863  21,894,359  21,124,382  21,040,713  22,596,906 



　　　　　　　　　　　　China Finance Online Co. Limited
　　　　   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
　　　　　　　　　　　　 (in thousands of U.S. dollars)
　　
　　　　　　　　　　　　　　　　　　　　　　　　 Three months ended
　　　　　　　　　　　　　　　　　　　　　　 Dec. 31,　　Dec. 31,　　Sep. 30,  
　　　　　　　　　　　　　　　　　　　　　　   2009　　   2008　　　　2009
　　Cash flows from operating activities:
　　Net income (loss)　　　　　　　　　　　　 (2,665)　　 6,178　　  (1,033)
　　Adjustments to reconcile net income  
　　 (loss) to net cash provided by　　  
　　 operating activities:
　　Stock-based compensation　　　　　　　　   1,584　　  2,096　　   1,633
　　Depreciation and amortization　　　　　　　　889　　　　681　　　　 751
　　Gain from sales of trading securities　　　　(41)　　　　--　　　　  --
　　Deferred taxes　　　　　　　　　　　　　　   211　　 (2,783)　　   (596)
　　Loss on disposal of property and　　 
　　 equipment　　　　　　　　　　　　　　　　   148　　　　  5　　　　  --
　　Changes in assets and liabilities:
　　Accounts receivable　　　　　　　　　　   (1,947)　　 1,535　　　　(658)
　　Advance to customers　　　　　　　　　　   4,008　　　　 --　　　 (1,526)
　　Prepaid expenses and other current   
　　 assets　　　　　　　　　　　　　　　　　　1,075　　  2,632　　   2,314
　　Advance to employees　　　　　　　　　　　　  --　　  2,614　　　　  --
　　Trust bank balances held on behalf of
　　 customers　　　　　　　　　　　　　　　　(7,832)　　   214　　  (2,143)
　　Rental deposits　　　　　　　　　　　　　　   34　　　　  1　　　　  --
　　Deferred revenue　　　　　　　　　　　　   1,786　　  1,870　　   1,572
　　Accounts payable　　　　　　　　　　　　　　 (95)　　   (13)　　   (152)
　　Amount due to customers for trust　　
　　 bank balances held on behalf of　　 
　　 customers　　　　　　　　　　　　　　　　 7,832　　   (214)　　  2,143
　　Accrued expenses and other current   
　　 liabilities　　　　　　　　　　　　　　   2,402　　   (588)　　　　270
　　Income taxes payable　　　　　　　　　　　　 (20)　　   142　　　　  (4)
　　Net cash provided by operating　　   
　　 activities　　　　　　　　　　　　　　　　7,369　　 14,370　　   2,571
　　
　　Cash flows from investing activities:
　　Acquisition of businesses　　　　　　　　 (1,083)　　 1,520　　　　  --
　　Purchase of trading securities　　　　　　  (268)　　　　--　　　　  -- 
　　Proceeds from sales of trading　　   
　　 securities　　　　　　　　　　　　　　　　  241　　　　 --　　　　  --
　　Purchase of property and equipment　　　　  (512)　　  (633)　　 (1,696)
　　Proceeds from disposal of fixed　　  
　　 assets　　　　　　　　　　　　　　　　　　　　1　　　　 --　　　　  --
　　Net cash provided by (used in)　　   
　　 investing activities　　　　　　　　　　 (1,621)　　   887　　  (1,696)
　　
　　Cash flows from financing activities:
　　Proceeds from stock options exercised
　　 by employees　　　　　　　　　　　　　　　　 62　　　　 12　　　　  40
　　Proceeds from exercise of options　　
　　 granted to non-employee　　　　　　　　　　  --　　　　  8　　　　  -- 
　　Repayment of bank loan　　　　　　　　　　(2,839)　　　　--　　　　  --
　　Proceeds from bank loan　　　　　　　　　　   --　　　　 --　　   2,839
　　Net cash provided by (used in)　　   
　　 financing activities　　　　　　　　　　 (2,777)　　　　20　　   2,879
　　
　　Effect of exchange rate changes　　　　　　   11　　   (128)　　　　 27
　　
　　Net increase in cash and cash　　　　
　　 equivalents　　　　　　　　　　　　　　   2,982　　 15,149　　   3,781
　　Cash and cash equivalents, beginning 
　　 of quarter　　　　　　　　　　　　　　  104,409　　 82,395　　 100,628
　　Cash and cash equivalents, end of　　
　　 quarter　　　　　　　　　　　　　　　　 107,391　　 97,544　　 104,409



　　Non-GAAP Measures　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　 Three months ended Dec. 31, 2009　　　　　　　　
　　　　　　　　　　　　   (U.S. Dollars in thousands)   
　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　 
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 from　　　　　　　　 (2,567)　　　　 1,584　　　　   (983)　　 
　　 operations　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　  Three months ended Dec. 31, 2008　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)   
 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　 
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 from　　　　　　　　  3,331　　　　  2,096　　　　  5,427　　　　 
　　 operations　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　  Three months ended Sep. 30, 2009　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　
　　　　　　　　　　　　
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 from　　　　　　　　(1,806)　　　　  1,633　　　　   (173)　　　　　　　　   
　　 operations　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　  Three months ended Dec. 31, 2009　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　   
　　　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　   
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　 (2,667)　　　　  1,584　　　　 (1,083)  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　  Three months ended Dec. 31, 2008　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　　　  
　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results  
　　　　　　　　　　　　　　　　　　　　  (a)  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　 6,178　　　　   2,096　　　　  8,274 
 
　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　　　　　　　　　Three months ended Sep. 30, 2009　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　  
　　　　　　　　　　
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　　　  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　(1,033)　　　　  1,633　　　　　　600
　　　　　　　　　　　　　　　　　　　　　　　　
　　　　　　　　　　　　　　Year ended Dec. 31, 2009　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)  
　　　　　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　  
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 from　　　　　　　　　　　　　　　　
　　 operations　　　　 (7,805)　　　　  6,601　　　　 (1,204)　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　　　　　　　　　　　Year ended Dec. 31, 2008　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　
　　　　　　　　　　   
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　  

　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 from　　　　　　　　　　　　　　　　　　　　　　　　   
　　 operations　　　　 12,786　　　　   8,040　　　　 20,826　　　　　　　　　　　　　　   
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　　　　　　　　　　　Year ended Dec. 31, 2009　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　　　   
　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　(6,224)　　　　  6,601　　　　　　377
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　　　Year ended Dec. 31, 2008　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　　　
　　　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　　　  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　19,020　　　　   8,040　　　　 27,060　　　　　　　　　　　　　　　　　　　　　　  
　　(a) The adjustment is for share-based compensation expenses.

　　
]]></description>
		<detail><![CDATA[
-- Registered User Accounts Increased to 14 Million, Q4 Net Operating Cash-Flow Reached $7.4 million --

　　BEIJING, March 16 /PRNewswire-Asia/ -- China Finance Online Co., Ltd. ("China Finance Online"," the Company") (Nasdaq: JRJC), the technology-driven, user-focused market leader in China in providing vertically integrated financial services and products including news, data, analytics and brokerage through web portals, software systems, and mobile handsets, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2009.

　　2009 Financial and Operating Highlights and 2010 Business Outlook
　　-- Registered user accounts increased to 14 million as of Q4 2009; the 
　　   company expects to increase registered user accounts to 20 million by 
　　   year end 2010, up 43% year-over-year;
　　-- Net revenues in the fourth quarter of 2009 reached $15 million; total 
　　   net revenues for 2009 were $53.6 million; the company expects to 
　　   generate net revenues ranging from $56 million to $62 million in the 
　　   2010 year;
　　-- Excluding stock-based compensation expenses, non-GAAP net loss was $1.1 
　　   million for Q4 2009 and non-GAAP net income was $0.4 million for the 
　　   2009 year; non-GAAP net income is anticipated to be between $2 million
　　   to $4 million for the 2010 year; 
　　-- Net loss was $2.7 million for the fourth quarter of 2009 and $6.2 
　　   million for the 2009;
　　-- As of December 31, 2009, total cash and cash equivalents were $107.4 
　　   million.
　　-- Net cash provided by operating activities was $7.4 million in Q4 2009,
　　   and $16.3 million in fiscal year of 2009; the company intends to 
　　   achieve positive free cash flow of over $8 million in 2010, excluding 
　　   potential M&amp;A activities.

　　Fourth Quarter Results

　　As of December 31, 2009, registered user accounts on the Company's web portals (http://www.jrj.com and http://www.stockstar.com ) were 14 million, compared to 11.3 million at the 2008 year end, and 13.1 million at the end of September 2009. Active paid subscribers were approximately 117,900 as of December 31, 2009, compared to approximately 116,200 at the 2008 year end and approximately 112,000 at the end of September 2009. As of December 31, 2009, the Company's Hong Kong-based brokerage service, Daily Growth, had approximately 1,650 customer accounts.

　　Net revenues for the fourth quarter of 2009 were $15.0 million, compared to $15.3 million for the same period in 2008 and compared with $14.6 million for the third quarter of 2009, down slightly compared with a year ago and up 2.9% quarter-over-quarter. 

　　For the fourth quarter of 2009, gross profit was $12.7 million, up 1.8% from $12.5 million for the same period in 2008 and up 3.7% from $12.3 million for the 2009 third quarter. Gross margin for the fourth quarter of 2009 was 84.8% compared to 81.8% for the same period in 2008 and versus 84.2% in the third quarter of 2009. Gross margin for the quarter increased from the same period last year due to a product mix change.  

　　General and administrative expenses for the 2009 fourth quarter were $4.0 million, in line with $3.9 million for the same period of 2008 and down from $5.0 million for the third quarter of 2009. The decline in general and administrative expenses was primarily related to effective cost control measures and the further streamlining of existing operations. Excluding stock-based compensation of $1.5 million, adjusted general and administrative expenses were $2.5 million for the 2009 fourth quarter, compared to $1.8 million in the fourth quarter of 2008 and $3.4 million in the third quarter of 2009, reflecting the corresponding stock-based compensation excluded in those quarters.

　　Sales and marketing expenses for the fourth quarter were $8.5 million compared with $3.8 million in fourth quarter in 2008 and $6.4 million in the 2009 third quarter. The increase in sales and marketing expenses was due to a special year-end bonus paid to the sales and marketing team for their achievements in the challenging environment in 2009 and the expenses related to the expansion of current programs and new initiatives to acquire new registered users and enhance the company's brand equity.  

　　Product development expenses for the fourth quarter of 2009 were $2.9 million compared with $1.9 million in the same quarter in 2008 and $2.9 million in the third quarter of 2009. In the quarter the Company continued its efforts in integrating product teams, and centralizing data management and software development organizations to streamline operations, which will lead to improved efficiency in 2010.

　　Total operating expenses for the fourth quarter of 2009 were $15.4 million compared with $9.6 million in the fourth quarter of 2008 and $14.3 million in the third quarter of 2009. The increase is mostly related to higher sales and marketing expenses in the 2009 fourth quarter. Excluding total stock-based compensation of $1.6 million, adjusted operating expenses were $13.8 million in the 2009 fourth quarter compared with adjusted operating expenses of $7.5 million for the fourth quarter of 2008, and $12.7 million in the third quarter of 2009. 

　　Non-GAAP loss from operations, which excluded stock-based compensation expenses, was $1.0 million for the 2009 fourth quarter, compared to non-GAAP income from operations of $5.4 million for the same quarter of 2008. The GAAP loss from operations for the fourth quarter of 2009 was $2.6 million, compared to income of $3.3 million in the fourth quarter of 2008.  

　　Non-GAAP net loss attributable to China Finance Online, which excluded all the stock-based compensation expenses of $1.6 million, was $1.1 million for the 2009 fourth quarter, compared to non-GAAP net income of $8.3 million for the same quarter of 2008, and non-GAAP net income of $0.6 million for the third quarter of 2009. GAAP net loss attributable to China Finance Online for the fourth quarter of 2009 was $2.7 million compared with a net income of $6.2 million in the 2008 fourth quarter and compared with a net loss of $1.0 million in the third quarter of 2009.

　　As of December 31, 2009, total cash and cash equivalents were $107.4 million. Shareholders' equity was $97.4 million. Net cash provided by operating activities for the 2009 fourth quarter was $7.4 million.  

　　Deferred revenue at the end of the fourth quarter of 2009, which represents prepaid service fees made by customers for subscription services that have not been rendered as of December 31, 2009, was $45.2 million.

　　Mr. Zhiwei Zhao, Chief Executive Officer of China Finance Online, commented, "We are pleased to see our fourth quarter top line exceeded the high end of our quarterly guidance of $14 million. During 2009, the unlawful, poor-quality copycats distorted the marketplace, which caused some confusion among our potential customers and negatively affected our expansion in the subscription business. However, we are encouraged to see that, beginning in 2010, the Chinese government has stepped up with more stringent regulations, which can be very constructive for the sustainability and overall health of the sector in the long run."

　　Mr. Zhao continued, "In the fourth quarter, we not only continued to make progress in integrating and streamlining all our operations to improve efficiency and lower costs, but also undertook substantial efforts in our product development, web portal operations and sales and marketing to focus on new registered user expansion. We are pleased to see that as a result of our above efforts, in the fourth quarter we optimized server utilization and lowered overall headcount as well as improved top line and increased both registered user accounts and paid subscribers."

　　"On the strategic partnership front, we signed with HKEx Information Service to become the first financial portal from China to provide free real-time quotes of securities traded on the Hong Kong Stock Exchange. We also successfully launched two applications for China's largest online shopping website, Taobao.com, and sealed a partnership with the leading 3G mobile operator, China Unicom, to become the exclusive financial content provider for its iPhone mobile portal. We are confident that all these strategic alignments will expand our registered user base and propel our paid subscription service growth for the future," Mr. Zhao concluded.

　　Fiscal Year 2009 Financial Results 

　　Total net revenues for the year ended on December 31, 2009, were $53.6 million compared to $56.2 million for 2008. 

　　The gross profit was $45.5 million for 2009 compared to $46.9 million for 2008. For 2009, the gross margin was 84.8% compared with 83.3% in 2008. The gross margin increased due to a product mix change. 

　　GAAP loss from operations in 2009 was $7.8 million compared with operating income of $12.8 million in 2008. Total operating expenses were $53.8 million in 2009 compared with $34.5 million a year ago. The higher operating expenses were primarily related to increased headcount in sales and marketing, product development and web portal operations as well as additional marketing expenses associated with partnership expansion. Non-GAAP loss from operations in 2009 was $1.2 million compared with Non-GAAP income of $20.8 million in 2008.

　　The GAAP net loss attributable to China Finance Online was $6.2 million for the 2009 year compared to a net profit of $19.0 million for 2008, with fully diluted loss per ADS of $0.30 in 2009 versus fully diluted earnings per ADS of $0.84 in 2008. Non-GAAP annual net income attributable to China Finance Online was $0.4 million in 2009. 

　　Net cash flow from operations in 2009 was 16.3 million, compared to 26.3 million 2008.
 
　　Latest Developments

　　In October 2009, China Finance Online announced that it entered into a definitive agreement with HKEx Information Services Limited (HKEx-IS), a business subsidiary of Hong Kong Exchanges and Clearing Limited Group whereby, http://www.JRJ.com , would become the first HKEx-IS designated finance portal in mainland China to provide free real-time basic market quotes to mainland China investors. JRJ.com is authorized to provide free real-time quotes of securities traded on the Hong Kong Stock Exchange. 

　　In October 2009, the Company established a strategic partnership with Taobao.com ("Taobao"), an Alibaba.com company. As the largest online shopping website in China, Taobao currently has over 145 million registered online users. Alitalk, Taobao's instant messenger platform, features 123 million registered users. Through this partnership, China Finance Online successfully developed a plug-in application for Alitalk and introduced an online trading simulation platform. Both applications are well received by Taobao's users.

　　In October 2009, China Finance Online formed a strategic partnership with China Unicom to become the exclusive content provider of financial news and market data for its 3G mobile portal (http://iphone.wo.com.cn ). China Unicom is the designated mobile carrier to offer the iPhone and its related 3G data services in China. The beta site went live in late October 2009 and Phase II has been up and running since March 12, 2010.

　　In March 2010, Mr. Alex Xu, the Company's Chief Strategy Officer, resigned to pursue other interests. There is no disagreement between Mr. Xu and the Company. Subsequently, Mr. Jeff Wang, Chief Financial Officer of the Company undertook the responsibilities previously assumed by Alex Xu.

　　"On behalf of everyone at China Finance Online, I would like to thank Alex for his contributions to the Company. We wish him all the best for his new pursuit," Mr. Zhiwei Zhao, Chief Executive Officer of China Finance Online, commented.

　　Business Outlook

　　The Company currently expects to increase the registered user accounts to 20 million by year end 2010, up 43% from 14 million at the year end of 2009, and up 82% from 11 million at the year end of 2008, respectively. 

　　The Company also expects to generate net revenues in an amount ranging from $56 million to $62 million for the 2010 year. Non-GAAP net income, which is defined as net income excluding stock-based compensations, for the 2010 year is anticipated to be between $2 million and $4 million. The Company intends to achieve positive free cash flow of over $8 million in 2010, excluding potential M&amp;A activities. Management has decided to discontinue quarterly guidance effective immediately and will periodically update the 2010 annual guidance. 

　　The above forecast reflects the Company's current and preliminary view, which is subject to change. A number of important factors including, but not limited to, fluctuation in the Chinese stock market, could cause the actual results to differ materially from those contained in the above guidance.

　　Mr. Zhiwei Zhao, Chief Executive Officer of China Finance Online, stated, "The most difficult two years are now behind us. With the strong advancement of the Chinese economy, the rapid growth of disposable income and individuals' savings, and individual investors' on-going investment interest, we see a promising 2010 ahead of us. With the IPO activities, or massive daily trading volume, or the newly introduced index futures investment products as well as potential shorting and margin mechanisms coming into play, we are very pleased to see Chinese stock exchanges are emerging as a major force in the global financial markets. Being the market leader with superior brand name, sustainable resources and highly-scalable operations, China Finance Online is well positioned to benefit from this favorable macro trend in the long run."  

　　"We also anticipate that 2010 will be a better year, as more government regulation of those unlawful copycats will help improve the overall competitive landscape. To further service 172 million investment trading accounts in China, we continue to build out our brand recognition through our robust online presence, superior product portfolio, and high-quality financial database. We continue to seek high-caliber strategic partnerships to help grow our registered user base, which will serve as the growth engine for our paid subscription business and other value-added services in the future. With our solid cash position and strong capability of cash generation, we have the financial resources to support our plan to expand registered user base and strengthen product and service offerings, which will further extend our market leadership," Mr. Zhao concluded.

　　Conference Call Information

　　The Company will host a conference call and a simultaneous webcast, on March 16, 2010 at 8:00 p.m. Eastern Daylight Time / March 17, 2010 8:00 a.m. Beijing Time. Interested parties may participate in the conference call by dialing approximately five to ten minutes before the call start time at U.S. Toll Free Number +1-877-847-0047, Hong Kong Number +852-3006-8101, or China Toll free Number 800 876 5011, and pass code for all regions is 610327.

　　A replay of the conference call will be available from approximately 10:00PM Eastern Daylight Time on March 16, 2010 (or 10:00AM March 17, 2010 in the Beijing/HK time zone) to 10:00PM Eastern Daylight Time on March 23, 2010 (or 10:00AM March 24, 2010 in the Beijing/HK time zone). The dial-in details for the replay: U.S. Toll Free Number +1-866-572-7808, Hong Kong Dial In Number +852- 3012-8000, and Access code: 610327. 

　　The conference call will also be available on webcast live and replay at: http://tinyurl.com/yfmle4g . The call will be archived for 12 months at this website.

　　About China Finance Online

　　China Finance Online Co. Limited is the technology-driven, user-focused market leader in China in providing vertically integrated financial services and products including news, data, analytics and brokerage through web portals, software systems, and mobile handsets. Through its web portals, http://www.jrj.com and http://www.stockstar.com , the Company provides individual users with subscription-based service packages that integrate financial and listed company data, information and analytics from multiple sources with features and functions such as data and information search, retrieval, delivery, storage and analysis. These features and functions are delivered through proprietary software available by download, through internet or through mobile handsets. Through its subsidiary, Genius, the Company provides financial information database and analytics to institutional customers including domestic securities and investment firms. Through its subsidiary, Daily Growth, the Company provides securities brokerage services for stocks listed on Hong Kong Stock Exchange.

　　Safe Harbor Statement

　　This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's strategic operational plans and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The Company believes that the Chinese economy continues to expand; however, the expansion may be uneven with certain sectors being affected more than others with resulting volatility in the Chinese equity market which could influence the Company's operating results in the coming quarters. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

　　Non-GAAP Measures

　　To supplement the unaudited condensed consolidated financial information presented in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"), the Company uses non-GAAP measures of income (loss)from operations, net income (loss), net income (loss) per share and net income (loss) per ADS, which are adjusted from results based on GAAP to exclude the stock-based compensation expenses due to the adoption of authoritative guidance on stock-based compensation, previously issued as SFAB123R, now Codified in Accounting Standards Codification Topic - ASC 718, which became effective on January 1, 2006. Adjusted EBITDA (non-GAAP) is defined as earnings before interest, taxes, depreciation, amortization, other non-operating income (loss), and stock-based compensation expenses. The non-GAAP financial measures are provided to enhance the investors' overall understanding of the Company's current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and therefore deems it important to provide all of this information to investors.

　　For more information, please contact:

　　In China:
　　 Lily Zhang 
　　 Investor Relations 
　　 China Finance Online Co., Ltd.
　　 Email: ir@jrj.com

　　In the United States:
　　 Kevin Theiss
　　 Grayling
　　 Tel:   +1-646-284-9409
　　 Email: kevin.theiss@grayling.com



　　　　　　　　　　　　　　　　 Tables Follow


　　　　　　　　　　　　China Finance Online Co. Limited
　　　　　　　　 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
　　　　　　　　　　　　 (In thousands of U.S. dollars)

　　　　　　　　　　　　　　　　　　　　　　 Dec. 31, 2009　　 Dec. 31, 2008
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  as adjusted (1)
　　Assets
　　Current assets:
　　　　  RMB account　　　　　　　　　　　　　　   93,754　　　　　　80,308
　　　　  Foreign currency account　　　　　　　　  13,637　　　　　　17,236
　　   Cash and cash equivalents　　　　　　　　   107,391　　　　　　97,544
　　   Trust bank balances held on behalf
　　　　of customers　　　　　　　　　　　　　　　　13,310　　　　　　 2,010
　　   Advance to employees　　　　　　　　　　　　　　 --　　　　　　   161
　　   Accounts receivable, net　　　　　　　　　　  5,370　　　　　　 2,876
　　   Short term investment　　　　　　　　　　　　　　68　　　　　　　　--
　　   Prepaid expenses and other current
　　　　assets　　　　　　　　　　　　　　　　　　   4,281　　　　　　 8,582
　　   Deferred tax assets, current　　　　　　　　  3,237　　　　　　 2,526
　　Total current assets　　　　　　　　　　　　   133,657　　　　   113,699
　　   Cost method investment　　　　　　　　　　　　1,480　　　　　　 1,480
　　   Property and equipment, net　　　　　　　　  10,268　　　　　　 8,589
　　   Acquired intangible assets, net　　　　　　   4,779　　　　　　 3,473
　　   Rental deposits　　　　　　　　　　　　　　　　 725　　　　　　   592
　　   Goodwill　　　　　　　　　　　　　　　　　　 12,603　　　　　　12,019
　　   Deferred tax assets, non-current　　　　　　  1,879　　　　　　 1,754
　　   Other deposits　　　　　　　　　　　　　　　　  219　　　　　　   218
　　Total assets　　　　　　　　　　　　　　　　   165,610　　　　   141,824
　　
　　Liabilities and shareholders' equity
　　Current liabilities:
　　   Deferred revenue, current　　　　　　　　　　30,620　　　　　　28,202
　　   Accrued expenses and other current
　　　　liabilities　　　　　　　　　　　　　　　　  8,243　　　　　　 4,897
　　   Amount due to customers for trust 
　　　　bank balances held on behalf of  
　　　　customers　　　　　　　　　　　　　　　　   13,310　　　　　　 2,010
　　   Accounts payable　　　　　　　　　　　　　　　　102　　　　　　   222
　　   Income taxes payable　　　　　　　　　　　　　　124　　　　　　   142
　　Total current liabilities　　　　　　　　　　   52,399　　　　　　35,473
　　   Deferred tax liability, non-　　  
　　　　current　　　　　　　　　　　　　　　　　　　　995　　　　　　   623
　　   Deferred revenue, non-current　　　　　　　　14,547　　　　　　 8,786
　　Total liabilities　　　　　　　　　　　　　　   67,941　　　　　　44,882
　　Noncontrolling interests　　　　　　　　　　　　   264　　　　　　　　--
　　Total shareholders' equity　　　　　　　　　　  97,405　　　　　　96,942
　　Total liabilities and shareholders'  
　　 equity　　　　　　　　　　　　　　　　　　　　165,610　　　　   141,824

　　(1) Amount in relation to noncontrolling interest, formerly named minority 
　　　　interest, as of December 31, 2008 is reclassified in accordance with 
　　　　ASC 810 (formerly FASB Statement No. 160, Noncontrolling Interest), 
　　　　which was adopted by the Company on January 1, 2009.



　　　　　　　　　　　　 China Finance Online Co. Limited　　　　　　　　　　 
　　　　　　　　 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS　　　　　　  
　　　　　　  (in thousands of U.S. dollars, except per share data)　　　　   

　　　　　　　　　　　　　　 Three months ended　　　　　　Year ended Dec. 31 
　　　　　　　　　　   Dec. 31,　　Dec. 31,　　Sep. 30,　　　　 
　　　　　　　　　　　　 2009　　　　2008　　　　2009　　   2009　　　　 2008　　 
　　　　　　　　　　　　　　　　 as adjusted　　　　　　　　　　   as adjusted 
　　Net revenues　　　　14,995　　  15,281　　  14,577　　  53,606　　  56,243 
　　Cost of revenues　　(2,275)　　 (2,781)　　 (2,309)　　 (8,147)　　 (9,367)
　　Gross profit　　　　12,720　　  12,500　　  12,268　　  45,459　　  46,876 
　　Operating expenses　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　General and　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 administrative
　　 (includes share-
　　 based compensation　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 expenses of $1,556,
　　 $2,065, $1,599,
　　 $6,436 and $7,768,
　　 respectively)　　  (4,024)　　 (3,911)　　 (5,004)　　(16,982)　　(15,371)
　　Sales and
　　 marketing　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (includes　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 share-based
　　 compensation　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 expenses　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 of $18, $19,
　　 $21, $108　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 and $213,　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 respectively)　　  (8,493)　　 (3,789)　　 (6,416)　　(26,095)　　(13,521)
　　Product
　　 development　　　　　　　　　　　　　　　　　　　　　　　　  
　　 (includes　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 share-based 
　　 compensation　　　　　　　　　　　　　　　　　　　　　　 
　　 expenses of 
　　 $10, $12, $13,
　　 $57 and $59,　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 respectively)　　  (2,902)　　 (1,906)　　 (2,873)　　(10,754)　　 (5,635)
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Total operating
　　 expenses　　　　  (15,419)　　 (9,606)　　(14,293)　　(53,831)　　(34,527)
　　Subsidy income　　　　 132　　　　 437　　　　 219　　　　 567　　　　 437 
　　Income (loss) from　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 operations　　　　 (2,567)　　  3,331　　  (1,806)　　 (7,805)　　 12,786 
　　Interest income　　　　372　　　　 404　　　　 379　　   1,352　　   1,608 
　　Investment gain
　　 (loss)　　　　　　　　 41　　　　 (59)　　　　 --　　　　  41　　　　(135)
　　Other loss, net　　   (148)　　　　(22)　　　　(70)　　   (258)　　　　(34)
　　Exchange gain
　　 (loss), net　　　　　　(6)　　   (123)　　　　  8　　　　   2　　   1,490 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Income (loss)
　　 before income
　　 tax benefit　　　　(2,308)　　  3,531　　  (1,489)　　 (6,668)　　 15,715 
　　Income tax
　　 benefit　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 (provision)　　　　  (357)　　  2,647　　　　 456　　　　 446　　   3,047 
　　Purchased pre-
　　 acquisition　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 earning　　　　　　　　--　　　　  --　　　　  --　　　　  --　　　　 227 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Net income (loss)   (2,665)　　  6,178　　  (1,033)　　 (6,222)　　 18,989 
　　Less: Net loss　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable to
　　 the noncontrolling
　　 interest　　　　　　   (2)　　　　 --　　　　  --　　　　  (2)　　　　 31 
　　Income (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 attributable to　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 China Finance
　　 Online Co.,　　　　　　　　　　　　　　　　　　　　　　
　　 Limited　　　　　　(2,667)　　  6,178　　  (1,033)　　 (6,224)　　 19,020 
　　Income (loss)
　　 per share　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　Basic　　　　　　　　(0.03)　　   0.06　　   (0.01)　　  (0.06)　　   0.19 
　　Diluted　　　　　　  (0.03)　　   0.06　　   (0.01)　　  (0.06)　　   0.17 
　　Income (loss)
　　 per ADS　　　　　　　　　　　　　　　　　　　　　　　　
　　Basic　　　　　　　　(0.13)　　   0.31　　   (0.05)　　  (0.30)　　   0.96 
　　Diluted　　　　　　  (0.13)　　   0.28　　   (0.05)　　  (0.30)　　   0.84 
　　Weighted average
　　 ordinary　　　　　　　　　　　　　　　　　　　　　　
　　 shares　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Basic　　　　  106,359,313  99,287,039 105,621,910 105,203,564  98,957,993 
　　Diluted　　　　106,359,313 109,417,794 105,621,910 105,203,564 112,984,532 
　　Weighted
　　 Average ADSs　　　　　　　　　　　　　　　　　　　　　　　　
　　Basic　　　　   21,271,863  19,857,408  21,124,382  21,040,713  19,791,599 
　　Diluted　　　　 21,271,863  21,894,359  21,124,382  21,040,713  22,596,906 



　　　　　　　　　　　　China Finance Online Co. Limited
　　　　   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
　　　　　　　　　　　　 (in thousands of U.S. dollars)
　　
　　　　　　　　　　　　　　　　　　　　　　　　 Three months ended
　　　　　　　　　　　　　　　　　　　　　　 Dec. 31,　　Dec. 31,　　Sep. 30,  
　　　　　　　　　　　　　　　　　　　　　　   2009　　   2008　　　　2009
　　Cash flows from operating activities:
　　Net income (loss)　　　　　　　　　　　　 (2,665)　　 6,178　　  (1,033)
　　Adjustments to reconcile net income  
　　 (loss) to net cash provided by　　  
　　 operating activities:
　　Stock-based compensation　　　　　　　　   1,584　　  2,096　　   1,633
　　Depreciation and amortization　　　　　　　　889　　　　681　　　　 751
　　Gain from sales of trading securities　　　　(41)　　　　--　　　　  --
　　Deferred taxes　　　　　　　　　　　　　　   211　　 (2,783)　　   (596)
　　Loss on disposal of property and　　 
　　 equipment　　　　　　　　　　　　　　　　   148　　　　  5　　　　  --
　　Changes in assets and liabilities:
　　Accounts receivable　　　　　　　　　　   (1,947)　　 1,535　　　　(658)
　　Advance to customers　　　　　　　　　　   4,008　　　　 --　　　 (1,526)
　　Prepaid expenses and other current   
　　 assets　　　　　　　　　　　　　　　　　　1,075　　  2,632　　   2,314
　　Advance to employees　　　　　　　　　　　　  --　　  2,614　　　　  --
　　Trust bank balances held on behalf of
　　 customers　　　　　　　　　　　　　　　　(7,832)　　   214　　  (2,143)
　　Rental deposits　　　　　　　　　　　　　　   34　　　　  1　　　　  --
　　Deferred revenue　　　　　　　　　　　　   1,786　　  1,870　　   1,572
　　Accounts payable　　　　　　　　　　　　　　 (95)　　   (13)　　   (152)
　　Amount due to customers for trust　　
　　 bank balances held on behalf of　　 
　　 customers　　　　　　　　　　　　　　　　 7,832　　   (214)　　  2,143
　　Accrued expenses and other current   
　　 liabilities　　　　　　　　　　　　　　   2,402　　   (588)　　　　270
　　Income taxes payable　　　　　　　　　　　　 (20)　　   142　　　　  (4)
　　Net cash provided by operating　　   
　　 activities　　　　　　　　　　　　　　　　7,369　　 14,370　　   2,571
　　
　　Cash flows from investing activities:
　　Acquisition of businesses　　　　　　　　 (1,083)　　 1,520　　　　  --
　　Purchase of trading securities　　　　　　  (268)　　　　--　　　　  -- 
　　Proceeds from sales of trading　　   
　　 securities　　　　　　　　　　　　　　　　  241　　　　 --　　　　  --
　　Purchase of property and equipment　　　　  (512)　　  (633)　　 (1,696)
　　Proceeds from disposal of fixed　　  
　　 assets　　　　　　　　　　　　　　　　　　　　1　　　　 --　　　　  --
　　Net cash provided by (used in)　　   
　　 investing activities　　　　　　　　　　 (1,621)　　   887　　  (1,696)
　　
　　Cash flows from financing activities:
　　Proceeds from stock options exercised
　　 by employees　　　　　　　　　　　　　　　　 62　　　　 12　　　　  40
　　Proceeds from exercise of options　　
　　 granted to non-employee　　　　　　　　　　  --　　　　  8　　　　  -- 
　　Repayment of bank loan　　　　　　　　　　(2,839)　　　　--　　　　  --
　　Proceeds from bank loan　　　　　　　　　　   --　　　　 --　　   2,839
　　Net cash provided by (used in)　　   
　　 financing activities　　　　　　　　　　 (2,777)　　　　20　　   2,879
　　
　　Effect of exchange rate changes　　　　　　   11　　   (128)　　　　 27
　　
　　Net increase in cash and cash　　　　
　　 equivalents　　　　　　　　　　　　　　   2,982　　 15,149　　   3,781
　　Cash and cash equivalents, beginning 
　　 of quarter　　　　　　　　　　　　　　  104,409　　 82,395　　 100,628
　　Cash and cash equivalents, end of　　
　　 quarter　　　　　　　　　　　　　　　　 107,391　　 97,544　　 104,409



　　Non-GAAP Measures　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　 Three months ended Dec. 31, 2009　　　　　　　　
　　　　　　　　　　　　   (U.S. Dollars in thousands)   
　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　 
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 from　　　　　　　　 (2,567)　　　　 1,584　　　　   (983)　　 
　　 operations　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　  Three months ended Dec. 31, 2008　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)   
 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　 
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 from　　　　　　　　  3,331　　　　  2,096　　　　  5,427　　　　 
　　 operations　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　  Three months ended Sep. 30, 2009　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　
　　　　　　　　　　　　
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 from　　　　　　　　(1,806)　　　　  1,633　　　　   (173)　　　　　　　　   
　　 operations　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　  Three months ended Dec. 31, 2009　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　   
　　　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　   
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　 (2,667)　　　　  1,584　　　　 (1,083)  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　  Three months ended Dec. 31, 2008　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　　　  
　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results  
　　　　　　　　　　　　　　　　　　　　  (a)  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　 6,178　　　　   2,096　　　　  8,274 
 
　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　　　　　　　　　Three months ended Sep. 30, 2009　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　  
　　　　　　　　　　
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　　　  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　(1,033)　　　　  1,633　　　　　　600
　　　　　　　　　　　　　　　　　　　　　　　　
　　　　　　　　　　　　　　Year ended Dec. 31, 2009　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)  
　　　　　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　  
　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 from　　　　　　　　　　　　　　　　
　　 operations　　　　 (7,805)　　　　  6,601　　　　 (1,204)　　　　　　　　　　　　　　　　　　　　  
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　　　　　　　　　　　Year ended Dec. 31, 2008　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　
　　　　　　　　　　   
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　  

　　Income　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 (loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 from　　　　　　　　　　　　　　　　　　　　　　　　   
　　 operations　　　　 12,786　　　　   8,040　　　　 20,826　　　　　　　　　　　　　　   
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　　　　　　　　　　　Year ended Dec. 31, 2009　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　　　   
　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　(6,224)　　　　  6,601　　　　　　377
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　　　Year ended Dec. 31, 2008　　　　　　　　　　　　   
　　　　　　　　　　　　   (U.S. Dollars in thousands)　　　　
　　　　　　　　　　 
　　　　　　　　　　　　GAAP Result　　Adjustment　　  Non-GAAP　　
　　　　　　　　　　　　　　　　　　　　　　　　　　　　Results　　
　　　　　　　　　　　　　　　　　　　　  (a)　　　　　　　　　　　　　　　　　　  
　　Net income　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　(loss)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 attributable　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 to China　　　　　　　　　　　　 
　　 Finance　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　 Online Co.　　　　　　　　　　　　　　　　　　　　　　　　　　　　   
　　 Limited　　　　　　19,020　　　　   8,040　　　　 27,060　　　　　　　　　　　　　　　　　　　　　　  
　　(a) The adjustment is for share-based compensation expenses.

　　
]]></detail>
		<source><![CDATA[SOURCE  China Finance Online Co. Limited]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100219011-1.html</link>
		<title>KongZhong Corporation Reports Unaudited Fourth Quarter 2009 Financial Results</title>
		<author>PR Newswire Asia</author>
		
		<category>IT</category>
		
		<pubDate>Wed, 17 Mar 2010 05:30:00 +0800</pubDate>
		<guid>4028ee8c2766a9030127685a3913001b</guid>
		<description><![CDATA[　　BEIJING, March 17 /PRNewswire-Asia/ -- KongZhong Corporation (Nasdaq: KONG), a leading mobile Internet company in China, today announced its unaudited fourth quarter 2009 and full year 2009 financial results. 

　　Fourth Quarter 2009 Financial Highlights:

　　(Note: Unless otherwise indicated, all financial statement amounts used in this press release are based on United States Generally Accepted Accounting Principles (GAAP) and denominated in US dollars)

　　-- Revenues in-line with the guidance - Total revenues for the Fourth 
　　   Quarter of 2009 ("4Q09") increased 28% year-over-year to US$ 34.3 
　　   million ("mn"), in line with the Company's revised 4Q09 revenue 
　　   guidance of US$ 34 mn to US$ 35 mn.
　　-- Gross margin decreased - Total gross margin was 46% in 4Q09, a decrease 
　　   compared with 49% in 3Q09. (Please see note related to change to 
　　   presentation of sales tax)
　　-- Net income increased - Net income in 4Q09 was US$ 2.02 mn, a 286% 
　　   increase compared with 4Q08 net income of US$ 0.52 mn. Basic net 
　　   income per ADS was US$ 0.06 based on 34.33 mn ADS while diluted net 
　　   income per ADS was US$ 0.05 based on 39.27 mn ADS outstanding as of 
　　   December 31, 2009.
　　-- Non-GAAP net income increased - Non-GAAP net income was US$ 5.44 mn, a 
　　   416% increase compared to 4Q08 Non-GAAP net income of US$ 1.09 mn, 
　　   while Non-GAAP diluted net income per ADS was US$ 0.13 (Non-GAAP 
　　   Financial Measures are described and reconciled to the corresponding 
　　   GAAP measures in the section titled "Non-GAAP Financial Measures.") 
　　-- Cash and cash equivalents - As of December 31, 2009, the Company had $ 
　　   139 mn in cash and cash equivalents. 

　　Full Year 2009 Financial Highlights:
　　-- Total revenues were $131.30 million - Total WVAS revenues were $98.24 
　　   million, total mobile games revenues were $27.30 million and total 
　　   Wireless Internet revenues were $5.76 million.
　　-- Gross margin increased - Overall gross margin was 48% for the year 2009, 
　　   an increase compared with overall gross margin of 44% in the year 2008. 
　　   (Please see note related to change to presentation of sales tax)
　　-- Net income increased - Net income in 2009 was US$ 12.58 mn, an increase 
　　   compared with 2008 net loss of US$ 20.66 mn.
　　-- Non-GAAP net income increased - Non-GAAP net income was US$20.15 mn in 
　　   the year of 2009, a 416% increase compared to the year of 2008 Non-GAAP 
　　   net income of US$ 3.91 mn.

　　Commenting on the results, the Company's Chairman and Chief Executive Officer, Leilei Wang, said, "Although we've entered another period of new policies implemented by our mobile operator partners, KongZhong continued to generate positive cashflow but more importantly, through our acquisition of Dacheng Networks have begun to diversify our business across mobile and PC-based Internet gaming platforms, where we believe we are well-positioned to be one of the leading players in the China market.

　　"Although our mobile related businesses will continue to experience some short-term fluctuations due to newly introduced mobile operator policies, we continue to believe that there will be an ongoing rationalization of the mobile Internet market, which will benefit large local players, such as ourselves. As an example, traffic on KONG.net in 4Q09 continued to reach record levels of traffic and users, growing roughly 40% from 3Q09, as the number of high quality large-scale mobile Internet sites remains limited, especially those focused on mobile entertainment.

　　"Loong" (our 3D MMORPG title self-developed by Dacheng) was launched at the end of 2009 and has become of the top domestically developed 3D online games for the mainland China market. We expect to launch a new expansion pack for "Loong" in 2Q10 and through various distribution partners, launch "Loong" commercially in Taiwan and Hong Kong towards the end of 1Q10 and into 2Q10.

　　"I continue to be optimistic about KongZhong's ability to transition through this period as a more diversified, more product driven and more profitable company."

　　Subsequent Events:
　　-- Amendment of acquisition agreement - On January 14th 2010, the Company 
　　   announced that it had entered into an amendment to the share purchase 
　　   agreement with Shanghai Dacheng Network Technology Co., Ltd  (Dacheng) 
　　   and its shareholders, which includes the entering into certain business 
　　   cooperation agreements among Dacheng, its shareholders and one of the 
　　   Company's wholly-owned subsidiaries. Pursuant to these business 
　　   cooperation agreements, the Company will obtain control of Dacheng and 
　　   expects to be able to consolidate Dacheng's financial results into the 
　　   Company's financial statements from January 14th, 2010. The Company 
　　   had previously announced that it expected to obtain control no later 
　　   than February 10th 2010 pursuant to certain closing conditions, which 
　　   were completed sooner than expected.


　　Financial Results:
　　　　　　　　　　　　　　  For the Three　　For the Three   For the Three 
　　　　　　　　　　　　　　   Months Ended　　 Months Ended　　Months Ended 
　　　　　　　　　　　　　　   December 31,　　September 30,　　December 31, 
　　　　　　　　　　　　　　　　　　   2008　　　　　　 2009　　　　　　2009 
　　　　　　　　　　　　　　 (US$ thousands)  (US$ thousands) (US$ thousands)
　　Revenues　　　　　　　　　　　　$26,736　　　　  $35,091　　　　 $34,334 
　　  WVAS　　　　　　　　　　　　   23,246　　　　   25,387　　　　  25,267 
　　  Mobile Games　　　　　　　　　　2,698　　　　　　8,202　　　　   7,349 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  792　　　　　　1,502　　　　   1,718 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Sales Tax　　　　　　　　　　　　  $796　　　　　　 $800　　　　　　$641 
　　  WVAS　　　　　　　　　　　　　　  644　　　　　　  528　　　　　　 406 
　　  Mobile Games　　　　　　　　　　   85　　　　　　  192　　　　　　 148 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　   67　　　　　　   80　　　　　　  87 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Cost of Revenue　　　　　　　　 $13,585　　　　  $17,167　　　　 $18,037 
　　  WVAS　　　　　　　　　　　　   12,201　　　　   13,074　　　　  13,493 
　　  Mobile Games　　　　　　　　　　1,053　　　　　　3,341　　　　   3,511 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  331　　　　　　  752　　　　   1,033 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Gross profit　　　　　　　　　　$12,355　　　　  $17,124　　　　 $15,656 
　　  WVAS　　　　　　　　　　　　   10,401　　　　   11,785　　　　  11,368 
　　  Mobile Games　　　　　　　　　　1,560　　　　　　4,669　　　　   3,690 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  394　　　　　　  670　　　　　　 598 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Gross profit ratio　　　　　　　　  46%　　　　　　  49%　　　　　　 46%
　　  WVAS　　　　　　　　　　　　　　  45%　　　　　　  46%　　　　　　 45%
　　  Mobile Games　　　　　　　　　　  58%　　　　　　  57%　　　　　　 50%
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  50%　　　　　　  45%　　　　　　 35%


　　Revenues

　　WVAS revenues in 4Q09 increased 9% from 4Q08 to US$ 25.27 mn but were down slightly compared to 3Q09. Revenues from 2.5G services accounted for approximately 19% of total WVAS revenues compared to 20% in 3Q09, while revenues from 2G services represented the remaining 81% in 4Q09. The small decrease in WVAS revenues in 4Q09 compared to 3Q09 was primarily due to new Chinese mobile operator policies implemented at the end of November 2009 which led to the suspension of certain billing platforms including WAP and the G+ mobile gaming platform. On December 10th 2009, the Company announced the estimated impact of these new policies on total revenues.

　　Total mobile game revenues in 4Q09 were US$ 7.35 mn, a 172% increase from the same period last year but roughly a 10% decrease from 3Q09. As mentioned above, due to new Chinese mobile operator policies implemented at the end of November 2009, billing was suspended for the G+ mobile game platform, negatively impacting both the Company's downloadable mobile game revenues and online mobile games. In addition, as the industry-wide suspension of WAP billing also negatively impacted various 3rd party mobile game marketing channels, this had a further dampening impact on overall mobile game revenues as our ability to market our mobile games was reduced during the December 2009 period.

　　Revenues from downloadable mobile games were US$ 6.52 mn representing a 218% increase from the same period last year but a decrease of roughly 8% from 3Q09. Revenues from downloadable mobile games made up 89% of total mobile game revenues compared to 86% in 3Q09 as downloadable mobile game revenues were less impacted in 4Q09 compared to online mobile game revenues.

　　Revenues from mobile multi-player online games ("MMO" or "online mobile games") were US$0.83 mn, an increase of 27% from the same period last year but a decrease of 26% from 3Q09. In addition to the factors cited above, the poor performance of "Feng Shen", our newer online mobile game, has not compensated for the gradual decline in revenues for "Tian Jie" our older online mobile game. Depending on market conditions, the Company intends to refresh our online mobile game content portfolio in 2010 by launching new online mobile game titles this year while seeking to improve the performance of our existing online mobile games.

　　Revenues from "Tian Jie" accounted for about 89% of our online mobile game revenues while revenues from "Feng Shen" accounted for the remaining 11%, compared to 3% in 3Q09. In 4Q09, revenues from online mobile games made up roughly 11% of total mobile game revenues compared to 26% in 3Q09.

　　Wireless Internet service ("WIS") revenues were US$ 1.72 mn in 4Q09, representing an increase of 117% from the same period last year and increase of 14% from 3Q09. In 4Q09, 40% of WIS revenues were from wireless advertising with the remaining 60% of revenues were from premium services on the Kong.net mobile Internet site and revenues coming from our newly acquired Internet literature site, Zhulang.com.

　　Change to Presentation of Sales tax

　　Prior to October 1, 2009, the Company recorded sales tax in general and administrative expenses. As of October 1, 2009, the Company has changed the presentation and now discloses sales tax separately as a reduction from revenue. The Company believes that this change provides better comparability to our peers. The Company has applied this change retrospectively to all prior periods presented herein in accordance with ASC 250 "Accounting Changes and Error Corrections." However, this change does not affect prior period results of operations, cash flow or financial positions. 

　　As a result, the gross profit and gross margin discussion below is based on the revised presentation of sales tax as a separate line item vs. as part of general and administrative expenses previously.

　　Gross Profit

　　Total gross profit was US$ 15.66 mn in 4Q09, a 27% increase compared to the same period last year but a 9% decrease compared to 3Q09. Total gross margin was 46%, stable with the same period last year but a 3% decrease from 3Q09. 

　　WVAS gross profit in 4Q09 was US$ 11.37 mn compared to $11.79 mn in 3Q09, or a 9% increase compared to the same period last year but a 4% decrease from 3Q09. 4Q09 WVAS gross margin was 45% compared to 46% in 3Q09 and 45% in 4Q08. The decline in gross margin levels was due to the new Chinese mobile operator policies implemented in the December period.

　　Mobile games gross profit for 4Q09 was US$ 3.69 mn compared to US$ 4.67 mn in 3Q09 and US$ 1.56 mn in the same period last year, or an increase of 137% compared to the same period last year but a 21% decrease compared to 3Q09. Mobile games gross margin was 50% compared to 57% in 3Q09 and 58% in 4Q08. The sharper decline in mobile game gross margins compared to WVAS is due to the Company's proactive shift to a new mobile game billing platform (namely China Mobile's monthly mobile game subscription package) in order to offset the impact of the G+ mobile game billing platform which was suspended at the beginning of December. While this new mobile game platform is expected to be a more stable source of recurring revenue, in the short-term, it relies more on our mobile operator partner's resources and includes an additional operator distribution channel fee. However, as the current mobile services policy environment stabilizes, we expect to be able to leverage more of our own distribution resources, bypassing these additional fees.

　　Wireless Internet service gross profit for 4Q09 was US$0.60 mn compared to $0.67 mn in 3Q09 and $0.39 mn in the same period last year. Wireless Internet gross margins were 35% and decreased from the 45% gross margin level in 3Q09 as the suspension of the WAP billing platform limited our ability to generate revenues in the December period relative to ongoing operational costs required to run our KONG.net and other related mobile Internet and Internet platforms.



　　Operating Expenses
　　　　　　　　　　　　　　 For the Three　　For the Three　　For the Three 
　　　　　　　　　　　　　　  Months Ended　　 Months Ended　　 Months Ended 
　　　　　　　　　　　　　　  December 31,　　September 30,　　 December 31, 
　　　　　　　　　　　　　　　　　　  2008　　　　　　 2009　　　　　　 2009 
　　Product development　　　　　　 $4,165　　　　   $4,829　　　　   $4,221 
　　Sales and marketing　　　　　　  5,816　　　　　　4,338　　　　　　4,953 
　　General and　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 administrative　　　　　　　　  2,775　　　　　　2,630　　　　　　2,856 
　　Total Operating　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 Expenses　　　　　　　　　　  $12,756　　　　  $11,797　　　　  $12,030 


　　Total operating expenses increased 2% sequentially to US$ 12.03 mn in 4Q09 compared to US$ 11.80 mn in 3Q09. 

　　Product development expenses in 4Q09 were US$ 4.22 mn compared to US$ 4.83 mn in 3Q09 or a 13% decrease. The sequential reduction in product development expenses is related to the rationalization of staff bonuses in lieu of the Chinese mobile operator policies introduced during 4Q09.

　　Sales and marketing expenses in 4Q09 were US$ 4.95 mn compared to US$ 4.34 mn in 3Q09 and US$ 5.82 mn in the same period last year. The sequential increase in sales and marketing  expenses is related to seasonal marketing activities the Company traditionally undertakes at year-end.

　　General and administrative expenses in 4Q09 were US$ 2.86 mn compared to US$ 2.63 mn in 3Q09, or an increase of roughly 9% quarter-over-quarter. As discussed previously, general and administrative expenses had previously included sales tax, but as of Oct 1st 2009, the Company has changed it's presentation of sales tax as a separate line item and is no longer included in general and administrative expenses. Once again, this change does not affect prior period results of operations, cash flow or financial positions.

　　The Company's total headcount increased to 1,002 as of December 31, 2009 compared to 922 as of September 30, 2009 with product development team increases continuing to make up the majority of overall headcount growth. This figure however does not include staff as part of our acquisition of Dacheng Network, which will be included in our 2010 financial accounts.

　　Operating Profit

　　Operating profit for 4Q09 was US$ 3.6 mn compared to US$ 5.3 mn in 3Q09. Operating margins were 10.6% in 4Q09 compared to 15.2% in 3Q09. The decline in operating profits and operating margins were due to the impact of new Chinese mobile operator policies across all of our business lines. 

　　Impairment of Long-term Investment

　　During 4Q09, the Company deemed its investment in Hui! Media to be impaired and recognized a US$ 1.5 mn investment impairment loss. The Company's investment in Hui! Media was made in January 2008. As of December 31st 2009, the Company no longer had any value related to our investment in Hui! Media as part of long-term investments.

　　Earnings

　　Net income and Non-GAAP net income in 4Q09 were US$ 2.02 mn and US$ 5.44 mn, respectively. Diluted earnings per ADS and diluted Non-GAAP earnings per ADS were US$ 0.05 and US$ 0.13 for 4Q09, respectively. 

　　Total diluted ADS outstanding as of December 31, 2009 was 39.27 mn, compared to 39.24 mn as of September 30, 2009. 



　　　　　　　　　　　　　　　　　　 Balance as of　　Balance as of December 
　　　　　　　　　　　　　　　　　　　　 September　　　　　　　　　　   31, 
　　　　　　　　　　　　　　　　　　　　  30, 2009　　　　　　　　　　  2009 
　　Basic ADS　　　　　　　　　　　　　　　　34.08　　　　　　　　　　 34.33 
　　Add: Outstanding options　　　　　　　　　　　　　　　　　　　　　　 
　　　　 and nonvested shares　　　　　　　　 3.96　　　　　　　　　　  3.68 
　　　　　　  Warrant to NGP　　　　　　　　  1.20　　　　　　　　　　  1.26 
　　Diluted ADS　　　　　　　　　　　　　　  39.24　　　　　　　　　　 39.27 


　　Balance Sheet

　　As of December 31, 2009, the Company had $139 mn in cash and cash equivalents. 

　　Business Outlook (For the 3-month period ending March 31, 2010):

　　Based on information available on March 17, 2010, the Company expects total revenues to be roughly US$ 37.5 mn with WVAS at US$ 24 mn, mobile games as US$ 8.5 mn, Wireless Internet services at US$ 1.0 mn and our newly formed Internet online game business unit which results from our acquisition of Dacheng Networks with US$ 4.0 mn in revenues.

　　Conference Call:

　　The Company's management team will conduct a conference call at 8:30 am Beijing time on March 17, 2010 (8:30 pm Eastern time and 5:30 pm Pacific time on March 16, 2010). A webcast of this conference call will be accessible on the Company's web site at http://ir.kongzhong.com .



　　　　　　　　　　　　　　　　KongZhong Corporation
　　　　　　　　　　Condensed Consolidated Statements of Income
　　　　　　   (US$ thousands, except per share data, and share count)
　　　　　　　　　　　　　　　　　　(Unaudited)

　　　　　　　　　　　　　　 For the Three　　For the Three　　For the Three 
　　　　　　　　　　　　　　  Months Ended　　 Months Ended　　 Months Ended 
　　　　　　　　　　　　　　  December 31,　　September 30,　　 December 31, 
　　　　　　　　　　　　　　　　　　  2008　　　　　　 2009　　　　　　 2009 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Revenues　　　　　　　　　　   $26,736　　　　  $35,091　　　　  $34,334 
　　Sales Tax　　　　　　　　　　　　  796　　　　　　  800　　　　　　  641 
　　Cost of revenues　　　　　　　　13,585　　　　   17,167　　　　   18,037 
　　Gross profit　　　　　　　　　　12,355　　　　   17,124　　　　   15,656 
　　Operating expenses　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　Product development　　　　  4,165　　　　　　4,829　　　　　　4,221 
　　　　Sales &amp; marketing　　　　　　5,816　　　　　　4,338　　　　　　4,953 
　　　　General &amp;　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　 administrative　　　　　　  2,775　　　　　　2,630　　　　　　2,856 
　　  Total operating　　　　　　　　　　　　　　　　　　　　　　　　　　
　　   expenses　　　　　　　　　　 12,756　　　　   11,797　　　　   12,030 
　　Operating profit (loss)　　　　   (401)　　　　   5,327　　　　　　3,626 
　　Interest income　　　　　　　　  1,103　　　　　　  717　　　　　　  600 
　　Investment income　　　　　　　　   --　　　　　　  117　　　　　　   88 
　　Loss from impairment of 
　　 cost method investment　　　　　　 --　　　　　　   --　　　　　　1,500
　　Interest expense on　　　　　　　　 
　　 convertible notes　　　　　　　　  --　　　　　　  234　　　　　　  234
　　Income before tax expense　　　　  702　　　　　　5,927　　　　　　2,580 
　　Income tax expense　　　　　　　　 180　　　　　　1,431　　　　　　  563 
　　Net income (loss)　　　　　　　　 $522　　　　   $4,496　　　　   $2,017 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Basic earnings (loss)　　　　　　$0.01　　　　　　$0.13　　　　　　$0.06 
　　 per ADS　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Diluted earnings　　　　　　　　 $0.01　　　　　　$0.11　　　　　　$0.05 
　　 (loss) per ADS　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Weighted average ADS　　　　　　 35.64　　　　　　34.08　　　　　　34.33 
　　 outstanding (mn)　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Weighted average ADS used　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 in diluted EPS 
　　 calculation (mn)　　　　　　　　35.93　　　　　　39.24　　　　　　39.27
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 


　　　　　　　　　　　　　　  KongZhong Corporation
　　　　　　　　 Condensed Consolidated Statements of Income
　　　　　　(US$ thousands, except per share data, and share count)
　　　　　　　　　　　　　　　　   (Unaudited)

　　　　　　　　　　　　　　　　　　　　  For the Twelve　　  For the Twelve 
　　　　　　　　　　　　　　　　　　　　　　Months Ended　　　　Months Ended 
　　　　　　　　　　　　　　　　　　　　　　December 31,　　　　December 31,
　　　　　　　　　　　　　　　　　　　　　　　　　　2008　　　　　　　　2009 
　　Revenues　　　　　　　　　　　　　　　　　　 $96,690　　　　　　$131,298 
　　Sales Tax　　　　　　　　　　　　　　　　　　  2,840　　　　　　   2,885 
　　Cost of revenues　　　　　　　　　　　　　　  51,612　　　　　　  65,947 
　　Gross profit　　　　　　　　　　　　　　　　  42,238　　　　　　  62,466 
　　Operating expenses　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　Product development　　　　　　　　　　   15,180　　　　　　  18,272 
　　　　Sales &amp; marketing　　　　　　　　　　　　 21,339　　　　　　  17,821 
　　　　General &amp; administrative　　　　　　　　   8,800　　　　　　  10,187 
　　　　Loss from impairment of　　　　　　　　　　　　　　　　　　　　   
　　　　 goodwill　　　　　　　　　　　　　　　　 21,624　　　　　　　　  -- 
　　  Total operating expenses　　　　　　　　　　66,943　　　　　　  46,280 
　　Operating loss　　　　　　　　　　　　　　   (24,705)　　　　　　 16,186 
　　Interest income　　　　　　　　　　　　　　　　4,897　　　　　　   3,114 
　　Investment income　　　　　　　　　　　　　　　　 --　　　　　　　　 207 
　　Loss from impairment of cost　　　　　　　　　　  
　　 method investment　　　　　　　　　　　　　　　　--　　　　　　   1,500
　　Interest expense on convertible notes　　　　　　 --　　　　　　　　 726 
　　Subtotal　　　　　　　　　　　　　　　　　　   4,897　　　　　　   1,095 
　　Income (loss) before tax expense　　　　　　 (19,808)　　　　　　 17,281 
　　Income tax expense　　　　　　　　　　　　　　   852　　　　　　   4,698 
　　Net income (loss)　　　　　　　　　　　　   ($20,660)　　　　　　$12,583 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Basic earnings (loss) per ADS　　　　　　　　 ($0.58)　　　　　　  $0.40 
　　Diluted earnings (loss) per ADS　　　　　　   ($0.58)　　　　　　  $0.33 
　　Weighted average ADS outstanding　　　　　　   
　　 (million)　　　　　　　　　　　　　　　　　　 35.62　　　　　　   34.63
　　Weighted average ADS used in　　　　　　　　   
　　 diluted EPS calculation (million)　　　　　　 35.62　　　　　　   38.44



　　　　　　　　　　　　　　   KongZhong Corporation
　　　　　　　　 Condensed Consolidated Statements of Cash Flows 
　　　　　　　　　　　　　　　　 (US$ thousands)
　　　　　　　　　　　　　　　　   (Unaudited)

　　　　　　　　　　　　　　　　　　　　　　   For the Year　　 For the Year 
　　　　　　　　　　　　　　　　　　　　　　　　　　  Ended　　　　　　Ended 
　　　　　　　　　　　　　　　　　　　　　　   December 31,　　 December 31, 
　　　　　　　　　　　　　　　　　　　　　　　　　　   2008　　　　　　 2009 
　　Cash Flows From Operating Activities　　　　　　　　　　　　　　　　 
　　Net Income (Loss)　　　　　　　　　　　　　　  $(20,660)　　　　 $12,583 
　　Adjustments to reconcile net income to　　　　　　　　　　　　　　   
　　 net cash provided by operating activities　　　　　　　　　　　　　　　　　　 
　　  Share-based compensation　　　　　　　　　　　　2,281　　　　　　4,212 
　　  Depreciation and amortization　　　　　　　　   2,868　　　　　　2,941 
　　  Disposal of property and equipment　　　　　　　　(20)　　　　　　  72 
　　  Provision of bad debt　　　　　　　　　　　　　　  --　　　　　　  266 
　　  Investment impairment loss　　　　　　　　　　　　 --　　　　　　1,500 
　　  Goodwill impairment loss　　　　　　　　　　   21,624　　　　　　   -- 
　　  Amortization of the debt discount　　　　　　　　  --　　　　　　  300 
　　  Investment income　　　　　　　　　　　　　　　　  --　　　　　　 (207)
　　  Changes in operating assets and　　　　　　　　　　　　　　　　   
　　   liabilities　　　　　　　　　　　　　　　　　　6,428　　　　   (7,553)
　　Net Cash Provided by Operating　　　　　　　　　　　　　　　　　　   
　　 Activities　　　　　　　　　　　　　　　　　　  12,521　　　　   14,114 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Cash Flows From Investing Activities　　　　　　　　　　　　　　　　 
　　Purchases of subsidiaries　　　　　　　　　　　　　　--　　　　   (6,687)
　　Purchase of property and equipment　　　　　　   (1,879)　　　　  (1,599)
　　Purchase of trading securities　　　　　　　　　　   --　　　　　　 (610)
　　Proceeds from disposal of property　　　　　　　　   31　　　　　　　　4 
　　Proceeds from disposal of trading　　　　　　　　　　　　　　　　　　
　　 securities　　　　　　　　　　　　　　　　　　　　  --　　　　　　  718 
　　Purchase of long-term investment　　　　　　　　 (2,964)　　　　　　  -- 
　　Net Cash Used in Investing Activities　　　　　　(4,812)　　　　  (8,174)
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Cash Flows From Financing Activities　　　　　　　　　　　　　　　　 
　　Proceeds from issuance of convertible note　　　　   --　　　　　　6,775 
　　Proceeds from exercise of share options　　　　　　  --　　　　　　1,535 
　　Stock Repurchase　　　　　　　　　　　　　　　　   (760)　　　　 (11,108)
　　Net Cash Used in Financing Activities　　　　　　  (760)　　　　  (2,798)
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Effect of foreign exchange rate changes　　　　   6,762　　　　　　   93 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Net increase in Cash and Cash　　　　　　　　　　　　　　　　　　   
　　 Equivalents　　　　　　　　　　　　　　　　　　 13,711　　　　　　3,235 
　　Cash and Cash Equivalents, Beginning of　　　　　　　　　　　　　　  
　　 Period　　　　　　　　　　　　　　　　　　　　$122,343　　　　 $136,054 
　　Cash and Cash Equivalents, End of　　　　　　　　　　　　　　　　　　
　　 Period　　　　　　　　　　　　　　　　　　　　$136,054　　　　 $139,289 



　　　　　　　　　　　　　　　　KongZhong Corporation
　　　　　　　　　　  Condensed Consolidated Balance Sheets 
　　　　　　　　　　　　　　　　  (US$ thousands)
　　　　　　　　　　　　　　　　　　(Unaudited)

　　　　　　　　　　　　　　　　　　December 30, September 30, December 31,
　　　　　　　　　　　　　　　　　　　　   2008　　　　  2009　　　　2009 
　　Cash and cash equivalents　　　　  $136,054　　  $133,980　　$139,289 
　　Short-term investments　　　　　　　　   --　　　　　　26　　　　 101 
　　Accounts receivable (net)　　　　　　16,196　　　　23,463　　  25,277 
　　Other current assets　　　　　　　　  3,389　　　　 6,745　　   4,908 
　　Total current assets　　　　　　　　155,639　　   164,214　　 169,575 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Rental deposits　　　　　　　　　　　　 524　　　　   582　　　　 597 
　　Intangible assets (net)　　　　　　　　 674　　　　 1,849　　   2,285 
　　Property and equipment (net)　　　　  3,368　　　　 3,107　　   3,116 
　　Long-term investments　　　　　　　　 2,964　　　　 2,964　　   1,464 
　　Goodwill　　　　　　　　　　　　　　 15,683　　　　21,262　　  23,042 
　　Total assets　　　　　　　　　　   $178,852　　  $193,978　　$200,079 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Accounts payable　　　　　　　　　　$10,792　　   $11,161　　 $13,265 
　　Other current liabilities　　　　　　 7,316　　　　10,479　　  10,300 
　　Total current liabilities　　　　　　18,108　　　　21,640　　  23,565 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Convertible notes　　　　　　　　　　　　--　　　　 2,767　　   3,001 
　　Non-current deferred tax　　　　　　　　　　　　　　　　　　　　　　 
　　 liability　　　　　　　　　　　　　　   56　　　　   400　　　　 472 
　　Total liabilities　　　　　　　　   $18,164　　   $24,807　　 $27,038 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Shareholders' equity　　　　　　　　160,688　　   169,171　　 173,041 
　　Total liabilities &amp;　　　　　　　　　　　　　　　　　　　　　　　　  
　　 shareholders' equity　　　　　　  $178,852　　  $193,978　　$200,079 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 

　　Non-GAAP Financial Measures 

　　To supplement the unaudited condensed statements of income presented in accordance with US GAAP, the Company uses non-GAAP financial measures (Non-GAAP Financial Measures) of net income and net income per diluted ADS, which are adjusted from results based on GAAP to exclude certain infrequent or unusual or non-cash based expenses, gains and losses. The Non-GAAP Financial Measures are provided as additional information to help both management and investors compare business trends among different reporting periods on a consistent and more meaningful basis and enhance investors' overall understanding of the Company's current financial performance and prospects for the future. 

　　The Non-GAAP Financial Measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. In addition, our calculation of the Non-GAAP Financial Measures may be different from the calculation used by other companies, and therefore comparability may be limited. 

　　For the periods presented, the Company's non-GAAP net income and non-GAAP net income per diluted ADS exclude, as applicable, the amortization of intangibles, share-based compensation expense and interest expense on convertible notes. 

　　Reconciliation of the Company's Non-GAAP financial measures to the GAAP financial measures is set forth below. 


　　　　　　　　　　　　　　　　   For the Three For the Three For the Three 
　　　　　　　　　　　　　　　　　　Months Ended  Months Ended  Months Ended 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　　　　　　　 December 31, September 30,  December 31, 
　　　　　　　　　　　　　　　　　　　　　　2008　　　　  2009　　　　  2009 
　　　　　　　　　　　　　　　　 (US$ thousands) (US$ thousands)(US$ thousands)
　　GAAP Net  Income (Loss)　　　　　　　　 $522　　　　$4,496　　　　$2,017 
　　Share-based compensation　　　　　　　　 418　　　　 1,229　　　　 1,248 
　　Financial expense on　　　　　　　　　　　　　　　　　　　　　　　　 
　　 convertible notes　　　　　　　　　　　　--　　　　   234　　　　   234 
　　Amortization of intangibles　　　　　　  152　　　　   319　　　　   441 
　　Investment impairment  loss　　　　　　   --　　　　　　--　　　　 1,500 
　　Non-GAAP Net Income　　　　　　　　   $1,092　　　　$6,278　　　　$5,440 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Non-GAAP diluted net income　　　　　　
　　 per ADS (Note 1)　　　　　　　　　　  $0.03　　　　 $0.16　　　　 $0.13

　　Note 1: The non-GAAP adjusted net income per ADS is computed using 
　　non-GAAP net income and number of ADS used in GAAP diluted EPS calculation, 
　　where the number of ADS is adjusted for dilution due to convertible notes 
　　issued to Nokia Growth Partners, or equivalent to 41.17 million ADS.


　　About KongZhong:

　　KongZhong Corporation is a leading mobile Internet company in China. The Company delivers wireless value-added services to consumers in China through multiple technology platforms including WAP, multimedia messaging service (MMS), JAVATM, short messaging service (SMS), interactive voice response (IVR), and color ring-back tone (CRBT). The Company operates three wireless Internet sites, Kong.net, Ko.cn and cn.NBA.com, which enable users to access media, entertainment and community content directly from their mobile phones. The Company also designs and operates mobile games, including mobile online games, JAVA games and WAP games.

　　Safe Harbor Statement: 

　　This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding trends in the wireless value-added services, wireless media and mobile games industries and our future results of operations, financial condition and business prospects. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends and our results may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, continued competitive pressure in China's wireless value-added services, wireless media and mobile games industries and the effect of such pressure on prices; unpredictable changes in technology, consumer demand and usage preferences in the market; the state of and any change in our relationship with China's telecommunications operators; our dependence on the billing systems of telecommunications operators for our performance; the outcome of our investment of operating income generated from the WVAS segment into the development of our wireless Internet segment and mobile games segment; changes in the regulations or policies of the Ministry of Industry and Information Technology and other relevant government authorities; and changes in political, economic, legal and social conditions in China, including the Chinese government's policies with respect to economic growth, foreign exchange, foreign investment and entry by foreign companies into China's telecommunications market. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.]]></description>
		<detail><![CDATA[　　BEIJING, March 17 /PRNewswire-Asia/ -- KongZhong Corporation (Nasdaq: KONG), a leading mobile Internet company in China, today announced its unaudited fourth quarter 2009 and full year 2009 financial results. 

　　Fourth Quarter 2009 Financial Highlights:

　　(Note: Unless otherwise indicated, all financial statement amounts used in this press release are based on United States Generally Accepted Accounting Principles (GAAP) and denominated in US dollars)

　　-- Revenues in-line with the guidance - Total revenues for the Fourth 
　　   Quarter of 2009 ("4Q09") increased 28% year-over-year to US$ 34.3 
　　   million ("mn"), in line with the Company's revised 4Q09 revenue 
　　   guidance of US$ 34 mn to US$ 35 mn.
　　-- Gross margin decreased - Total gross margin was 46% in 4Q09, a decrease 
　　   compared with 49% in 3Q09. (Please see note related to change to 
　　   presentation of sales tax)
　　-- Net income increased - Net income in 4Q09 was US$ 2.02 mn, a 286% 
　　   increase compared with 4Q08 net income of US$ 0.52 mn. Basic net 
　　   income per ADS was US$ 0.06 based on 34.33 mn ADS while diluted net 
　　   income per ADS was US$ 0.05 based on 39.27 mn ADS outstanding as of 
　　   December 31, 2009.
　　-- Non-GAAP net income increased - Non-GAAP net income was US$ 5.44 mn, a 
　　   416% increase compared to 4Q08 Non-GAAP net income of US$ 1.09 mn, 
　　   while Non-GAAP diluted net income per ADS was US$ 0.13 (Non-GAAP 
　　   Financial Measures are described and reconciled to the corresponding 
　　   GAAP measures in the section titled "Non-GAAP Financial Measures.") 
　　-- Cash and cash equivalents - As of December 31, 2009, the Company had $ 
　　   139 mn in cash and cash equivalents. 

　　Full Year 2009 Financial Highlights:
　　-- Total revenues were $131.30 million - Total WVAS revenues were $98.24 
　　   million, total mobile games revenues were $27.30 million and total 
　　   Wireless Internet revenues were $5.76 million.
　　-- Gross margin increased - Overall gross margin was 48% for the year 2009, 
　　   an increase compared with overall gross margin of 44% in the year 2008. 
　　   (Please see note related to change to presentation of sales tax)
　　-- Net income increased - Net income in 2009 was US$ 12.58 mn, an increase 
　　   compared with 2008 net loss of US$ 20.66 mn.
　　-- Non-GAAP net income increased - Non-GAAP net income was US$20.15 mn in 
　　   the year of 2009, a 416% increase compared to the year of 2008 Non-GAAP 
　　   net income of US$ 3.91 mn.

　　Commenting on the results, the Company's Chairman and Chief Executive Officer, Leilei Wang, said, "Although we've entered another period of new policies implemented by our mobile operator partners, KongZhong continued to generate positive cashflow but more importantly, through our acquisition of Dacheng Networks have begun to diversify our business across mobile and PC-based Internet gaming platforms, where we believe we are well-positioned to be one of the leading players in the China market.

　　"Although our mobile related businesses will continue to experience some short-term fluctuations due to newly introduced mobile operator policies, we continue to believe that there will be an ongoing rationalization of the mobile Internet market, which will benefit large local players, such as ourselves. As an example, traffic on KONG.net in 4Q09 continued to reach record levels of traffic and users, growing roughly 40% from 3Q09, as the number of high quality large-scale mobile Internet sites remains limited, especially those focused on mobile entertainment.

　　"Loong" (our 3D MMORPG title self-developed by Dacheng) was launched at the end of 2009 and has become of the top domestically developed 3D online games for the mainland China market. We expect to launch a new expansion pack for "Loong" in 2Q10 and through various distribution partners, launch "Loong" commercially in Taiwan and Hong Kong towards the end of 1Q10 and into 2Q10.

　　"I continue to be optimistic about KongZhong's ability to transition through this period as a more diversified, more product driven and more profitable company."

　　Subsequent Events:
　　-- Amendment of acquisition agreement - On January 14th 2010, the Company 
　　   announced that it had entered into an amendment to the share purchase 
　　   agreement with Shanghai Dacheng Network Technology Co., Ltd  (Dacheng) 
　　   and its shareholders, which includes the entering into certain business 
　　   cooperation agreements among Dacheng, its shareholders and one of the 
　　   Company's wholly-owned subsidiaries. Pursuant to these business 
　　   cooperation agreements, the Company will obtain control of Dacheng and 
　　   expects to be able to consolidate Dacheng's financial results into the 
　　   Company's financial statements from January 14th, 2010. The Company 
　　   had previously announced that it expected to obtain control no later 
　　   than February 10th 2010 pursuant to certain closing conditions, which 
　　   were completed sooner than expected.


　　Financial Results:
　　　　　　　　　　　　　　  For the Three　　For the Three   For the Three 
　　　　　　　　　　　　　　   Months Ended　　 Months Ended　　Months Ended 
　　　　　　　　　　　　　　   December 31,　　September 30,　　December 31, 
　　　　　　　　　　　　　　　　　　   2008　　　　　　 2009　　　　　　2009 
　　　　　　　　　　　　　　 (US$ thousands)  (US$ thousands) (US$ thousands)
　　Revenues　　　　　　　　　　　　$26,736　　　　  $35,091　　　　 $34,334 
　　  WVAS　　　　　　　　　　　　   23,246　　　　   25,387　　　　  25,267 
　　  Mobile Games　　　　　　　　　　2,698　　　　　　8,202　　　　   7,349 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  792　　　　　　1,502　　　　   1,718 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Sales Tax　　　　　　　　　　　　  $796　　　　　　 $800　　　　　　$641 
　　  WVAS　　　　　　　　　　　　　　  644　　　　　　  528　　　　　　 406 
　　  Mobile Games　　　　　　　　　　   85　　　　　　  192　　　　　　 148 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　   67　　　　　　   80　　　　　　  87 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Cost of Revenue　　　　　　　　 $13,585　　　　  $17,167　　　　 $18,037 
　　  WVAS　　　　　　　　　　　　   12,201　　　　   13,074　　　　  13,493 
　　  Mobile Games　　　　　　　　　　1,053　　　　　　3,341　　　　   3,511 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  331　　　　　　  752　　　　   1,033 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Gross profit　　　　　　　　　　$12,355　　　　  $17,124　　　　 $15,656 
　　  WVAS　　　　　　　　　　　　   10,401　　　　   11,785　　　　  11,368 
　　  Mobile Games　　　　　　　　　　1,560　　　　　　4,669　　　　   3,690 
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  394　　　　　　  670　　　　　　 598 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Gross profit ratio　　　　　　　　  46%　　　　　　  49%　　　　　　 46%
　　  WVAS　　　　　　　　　　　　　　  45%　　　　　　  46%　　　　　　 45%
　　  Mobile Games　　　　　　　　　　  58%　　　　　　  57%　　　　　　 50%
　　  Wireless Internet　　　　　　　　　　　　　　　　　　　　　　　　  
　　   Service　　　　　　　　　　　　  50%　　　　　　  45%　　　　　　 35%


　　Revenues

　　WVAS revenues in 4Q09 increased 9% from 4Q08 to US$ 25.27 mn but were down slightly compared to 3Q09. Revenues from 2.5G services accounted for approximately 19% of total WVAS revenues compared to 20% in 3Q09, while revenues from 2G services represented the remaining 81% in 4Q09. The small decrease in WVAS revenues in 4Q09 compared to 3Q09 was primarily due to new Chinese mobile operator policies implemented at the end of November 2009 which led to the suspension of certain billing platforms including WAP and the G+ mobile gaming platform. On December 10th 2009, the Company announced the estimated impact of these new policies on total revenues.

　　Total mobile game revenues in 4Q09 were US$ 7.35 mn, a 172% increase from the same period last year but roughly a 10% decrease from 3Q09. As mentioned above, due to new Chinese mobile operator policies implemented at the end of November 2009, billing was suspended for the G+ mobile game platform, negatively impacting both the Company's downloadable mobile game revenues and online mobile games. In addition, as the industry-wide suspension of WAP billing also negatively impacted various 3rd party mobile game marketing channels, this had a further dampening impact on overall mobile game revenues as our ability to market our mobile games was reduced during the December 2009 period.

　　Revenues from downloadable mobile games were US$ 6.52 mn representing a 218% increase from the same period last year but a decrease of roughly 8% from 3Q09. Revenues from downloadable mobile games made up 89% of total mobile game revenues compared to 86% in 3Q09 as downloadable mobile game revenues were less impacted in 4Q09 compared to online mobile game revenues.

　　Revenues from mobile multi-player online games ("MMO" or "online mobile games") were US$0.83 mn, an increase of 27% from the same period last year but a decrease of 26% from 3Q09. In addition to the factors cited above, the poor performance of "Feng Shen", our newer online mobile game, has not compensated for the gradual decline in revenues for "Tian Jie" our older online mobile game. Depending on market conditions, the Company intends to refresh our online mobile game content portfolio in 2010 by launching new online mobile game titles this year while seeking to improve the performance of our existing online mobile games.

　　Revenues from "Tian Jie" accounted for about 89% of our online mobile game revenues while revenues from "Feng Shen" accounted for the remaining 11%, compared to 3% in 3Q09. In 4Q09, revenues from online mobile games made up roughly 11% of total mobile game revenues compared to 26% in 3Q09.

　　Wireless Internet service ("WIS") revenues were US$ 1.72 mn in 4Q09, representing an increase of 117% from the same period last year and increase of 14% from 3Q09. In 4Q09, 40% of WIS revenues were from wireless advertising with the remaining 60% of revenues were from premium services on the Kong.net mobile Internet site and revenues coming from our newly acquired Internet literature site, Zhulang.com.

　　Change to Presentation of Sales tax

　　Prior to October 1, 2009, the Company recorded sales tax in general and administrative expenses. As of October 1, 2009, the Company has changed the presentation and now discloses sales tax separately as a reduction from revenue. The Company believes that this change provides better comparability to our peers. The Company has applied this change retrospectively to all prior periods presented herein in accordance with ASC 250 "Accounting Changes and Error Corrections." However, this change does not affect prior period results of operations, cash flow or financial positions. 

　　As a result, the gross profit and gross margin discussion below is based on the revised presentation of sales tax as a separate line item vs. as part of general and administrative expenses previously.

　　Gross Profit

　　Total gross profit was US$ 15.66 mn in 4Q09, a 27% increase compared to the same period last year but a 9% decrease compared to 3Q09. Total gross margin was 46%, stable with the same period last year but a 3% decrease from 3Q09. 

　　WVAS gross profit in 4Q09 was US$ 11.37 mn compared to $11.79 mn in 3Q09, or a 9% increase compared to the same period last year but a 4% decrease from 3Q09. 4Q09 WVAS gross margin was 45% compared to 46% in 3Q09 and 45% in 4Q08. The decline in gross margin levels was due to the new Chinese mobile operator policies implemented in the December period.

　　Mobile games gross profit for 4Q09 was US$ 3.69 mn compared to US$ 4.67 mn in 3Q09 and US$ 1.56 mn in the same period last year, or an increase of 137% compared to the same period last year but a 21% decrease compared to 3Q09. Mobile games gross margin was 50% compared to 57% in 3Q09 and 58% in 4Q08. The sharper decline in mobile game gross margins compared to WVAS is due to the Company's proactive shift to a new mobile game billing platform (namely China Mobile's monthly mobile game subscription package) in order to offset the impact of the G+ mobile game billing platform which was suspended at the beginning of December. While this new mobile game platform is expected to be a more stable source of recurring revenue, in the short-term, it relies more on our mobile operator partner's resources and includes an additional operator distribution channel fee. However, as the current mobile services policy environment stabilizes, we expect to be able to leverage more of our own distribution resources, bypassing these additional fees.

　　Wireless Internet service gross profit for 4Q09 was US$0.60 mn compared to $0.67 mn in 3Q09 and $0.39 mn in the same period last year. Wireless Internet gross margins were 35% and decreased from the 45% gross margin level in 3Q09 as the suspension of the WAP billing platform limited our ability to generate revenues in the December period relative to ongoing operational costs required to run our KONG.net and other related mobile Internet and Internet platforms.



　　Operating Expenses
　　　　　　　　　　　　　　 For the Three　　For the Three　　For the Three 
　　　　　　　　　　　　　　  Months Ended　　 Months Ended　　 Months Ended 
　　　　　　　　　　　　　　  December 31,　　September 30,　　 December 31, 
　　　　　　　　　　　　　　　　　　  2008　　　　　　 2009　　　　　　 2009 
　　Product development　　　　　　 $4,165　　　　   $4,829　　　　   $4,221 
　　Sales and marketing　　　　　　  5,816　　　　　　4,338　　　　　　4,953 
　　General and　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 administrative　　　　　　　　  2,775　　　　　　2,630　　　　　　2,856 
　　Total Operating　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　 Expenses　　　　　　　　　　  $12,756　　　　  $11,797　　　　  $12,030 


　　Total operating expenses increased 2% sequentially to US$ 12.03 mn in 4Q09 compared to US$ 11.80 mn in 3Q09. 

　　Product development expenses in 4Q09 were US$ 4.22 mn compared to US$ 4.83 mn in 3Q09 or a 13% decrease. The sequential reduction in product development expenses is related to the rationalization of staff bonuses in lieu of the Chinese mobile operator policies introduced during 4Q09.

　　Sales and marketing expenses in 4Q09 were US$ 4.95 mn compared to US$ 4.34 mn in 3Q09 and US$ 5.82 mn in the same period last year. The sequential increase in sales and marketing  expenses is related to seasonal marketing activities the Company traditionally undertakes at year-end.

　　General and administrative expenses in 4Q09 were US$ 2.86 mn compared to US$ 2.63 mn in 3Q09, or an increase of roughly 9% quarter-over-quarter. As discussed previously, general and administrative expenses had previously included sales tax, but as of Oct 1st 2009, the Company has changed it's presentation of sales tax as a separate line item and is no longer included in general and administrative expenses. Once again, this change does not affect prior period results of operations, cash flow or financial positions.

　　The Company's total headcount increased to 1,002 as of December 31, 2009 compared to 922 as of September 30, 2009 with product development team increases continuing to make up the majority of overall headcount growth. This figure however does not include staff as part of our acquisition of Dacheng Network, which will be included in our 2010 financial accounts.

　　Operating Profit

　　Operating profit for 4Q09 was US$ 3.6 mn compared to US$ 5.3 mn in 3Q09. Operating margins were 10.6% in 4Q09 compared to 15.2% in 3Q09. The decline in operating profits and operating margins were due to the impact of new Chinese mobile operator policies across all of our business lines. 

　　Impairment of Long-term Investment

　　During 4Q09, the Company deemed its investment in Hui! Media to be impaired and recognized a US$ 1.5 mn investment impairment loss. The Company's investment in Hui! Media was made in January 2008. As of December 31st 2009, the Company no longer had any value related to our investment in Hui! Media as part of long-term investments.

　　Earnings

　　Net income and Non-GAAP net income in 4Q09 were US$ 2.02 mn and US$ 5.44 mn, respectively. Diluted earnings per ADS and diluted Non-GAAP earnings per ADS were US$ 0.05 and US$ 0.13 for 4Q09, respectively. 

　　Total diluted ADS outstanding as of December 31, 2009 was 39.27 mn, compared to 39.24 mn as of September 30, 2009. 



　　　　　　　　　　　　　　　　　　 Balance as of　　Balance as of December 
　　　　　　　　　　　　　　　　　　　　 September　　　　　　　　　　   31, 
　　　　　　　　　　　　　　　　　　　　  30, 2009　　　　　　　　　　  2009 
　　Basic ADS　　　　　　　　　　　　　　　　34.08　　　　　　　　　　 34.33 
　　Add: Outstanding options　　　　　　　　　　　　　　　　　　　　　　 
　　　　 and nonvested shares　　　　　　　　 3.96　　　　　　　　　　  3.68 
　　　　　　  Warrant to NGP　　　　　　　　  1.20　　　　　　　　　　  1.26 
　　Diluted ADS　　　　　　　　　　　　　　  39.24　　　　　　　　　　 39.27 


　　Balance Sheet

　　As of December 31, 2009, the Company had $139 mn in cash and cash equivalents. 

　　Business Outlook (For the 3-month period ending March 31, 2010):

　　Based on information available on March 17, 2010, the Company expects total revenues to be roughly US$ 37.5 mn with WVAS at US$ 24 mn, mobile games as US$ 8.5 mn, Wireless Internet services at US$ 1.0 mn and our newly formed Internet online game business unit which results from our acquisition of Dacheng Networks with US$ 4.0 mn in revenues.

　　Conference Call:

　　The Company's management team will conduct a conference call at 8:30 am Beijing time on March 17, 2010 (8:30 pm Eastern time and 5:30 pm Pacific time on March 16, 2010). A webcast of this conference call will be accessible on the Company's web site at http://ir.kongzhong.com .



　　　　　　　　　　　　　　　　KongZhong Corporation
　　　　　　　　　　Condensed Consolidated Statements of Income
　　　　　　   (US$ thousands, except per share data, and share count)
　　　　　　　　　　　　　　　　　　(Unaudited)

　　　　　　　　　　　　　　 For the Three　　For the Three　　For the Three 
　　　　　　　　　　　　　　  Months Ended　　 Months Ended　　 Months Ended 
　　　　　　　　　　　　　　  December 31,　　September 30,　　 December 31, 
　　　　　　　　　　　　　　　　　　  2008　　　　　　 2009　　　　　　 2009 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Revenues　　　　　　　　　　   $26,736　　　　  $35,091　　　　  $34,334 
　　Sales Tax　　　　　　　　　　　　  796　　　　　　  800　　　　　　  641 
　　Cost of revenues　　　　　　　　13,585　　　　   17,167　　　　   18,037 
　　Gross profit　　　　　　　　　　12,355　　　　   17,124　　　　   15,656 
　　Operating expenses　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　Product development　　　　  4,165　　　　　　4,829　　　　　　4,221 
　　　　Sales &amp; marketing　　　　　　5,816　　　　　　4,338　　　　　　4,953 
　　　　General &amp;　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　 administrative　　　　　　  2,775　　　　　　2,630　　　　　　2,856 
　　  Total operating　　　　　　　　　　　　　　　　　　　　　　　　　　
　　   expenses　　　　　　　　　　 12,756　　　　   11,797　　　　   12,030 
　　Operating profit (loss)　　　　   (401)　　　　   5,327　　　　　　3,626 
　　Interest income　　　　　　　　  1,103　　　　　　  717　　　　　　  600 
　　Investment income　　　　　　　　   --　　　　　　  117　　　　　　   88 
　　Loss from impairment of 
　　 cost method investment　　　　　　 --　　　　　　   --　　　　　　1,500
　　Interest expense on　　　　　　　　 
　　 convertible notes　　　　　　　　  --　　　　　　  234　　　　　　  234
　　Income before tax expense　　　　  702　　　　　　5,927　　　　　　2,580 
　　Income tax expense　　　　　　　　 180　　　　　　1,431　　　　　　  563 
　　Net income (loss)　　　　　　　　 $522　　　　   $4,496　　　　   $2,017 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Basic earnings (loss)　　　　　　$0.01　　　　　　$0.13　　　　　　$0.06 
　　 per ADS　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Diluted earnings　　　　　　　　 $0.01　　　　　　$0.11　　　　　　$0.05 
　　 (loss) per ADS　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　  
　　Weighted average ADS　　　　　　 35.64　　　　　　34.08　　　　　　34.33 
　　 outstanding (mn)　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Weighted average ADS used　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
　　 in diluted EPS 
　　 calculation (mn)　　　　　　　　35.93　　　　　　39.24　　　　　　39.27
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 


　　　　　　　　　　　　　　  KongZhong Corporation
　　　　　　　　 Condensed Consolidated Statements of Income
　　　　　　(US$ thousands, except per share data, and share count)
　　　　　　　　　　　　　　　　   (Unaudited)

　　　　　　　　　　　　　　　　　　　　  For the Twelve　　  For the Twelve 
　　　　　　　　　　　　　　　　　　　　　　Months Ended　　　　Months Ended 
　　　　　　　　　　　　　　　　　　　　　　December 31,　　　　December 31,
　　　　　　　　　　　　　　　　　　　　　　　　　　2008　　　　　　　　2009 
　　Revenues　　　　　　　　　　　　　　　　　　 $96,690　　　　　　$131,298 
　　Sales Tax　　　　　　　　　　　　　　　　　　  2,840　　　　　　   2,885 
　　Cost of revenues　　　　　　　　　　　　　　  51,612　　　　　　  65,947 
　　Gross profit　　　　　　　　　　　　　　　　  42,238　　　　　　  62,466 
　　Operating expenses　　　　　　　　　　　　　　　　　　　　　　　　   
　　　　Product development　　　　　　　　　　   15,180　　　　　　  18,272 
　　　　Sales &amp; marketing　　　　　　　　　　　　 21,339　　　　　　  17,821 
　　　　General &amp; administrative　　　　　　　　   8,800　　　　　　  10,187 
　　　　Loss from impairment of　　　　　　　　　　　　　　　　　　　　   
　　　　 goodwill　　　　　　　　　　　　　　　　 21,624　　　　　　　　  -- 
　　  Total operating expenses　　　　　　　　　　66,943　　　　　　  46,280 
　　Operating loss　　　　　　　　　　　　　　   (24,705)　　　　　　 16,186 
　　Interest income　　　　　　　　　　　　　　　　4,897　　　　　　   3,114 
　　Investment income　　　　　　　　　　　　　　　　 --　　　　　　　　 207 
　　Loss from impairment of cost　　　　　　　　　　  
　　 method investment　　　　　　　　　　　　　　　　--　　　　　　   1,500
　　Interest expense on convertible notes　　　　　　 --　　　　　　　　 726 
　　Subtotal　　　　　　　　　　　　　　　　　　   4,897　　　　　　   1,095 
　　Income (loss) before tax expense　　　　　　 (19,808)　　　　　　 17,281 
　　Income tax expense　　　　　　　　　　　　　　   852　　　　　　   4,698 
　　Net income (loss)　　　　　　　　　　　　   ($20,660)　　　　　　$12,583 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Basic earnings (loss) per ADS　　　　　　　　 ($0.58)　　　　　　  $0.40 
　　Diluted earnings (loss) per ADS　　　　　　   ($0.58)　　　　　　  $0.33 
　　Weighted average ADS outstanding　　　　　　   
　　 (million)　　　　　　　　　　　　　　　　　　 35.62　　　　　　   34.63
　　Weighted average ADS used in　　　　　　　　   
　　 diluted EPS calculation (million)　　　　　　 35.62　　　　　　   38.44



　　　　　　　　　　　　　　   KongZhong Corporation
　　　　　　　　 Condensed Consolidated Statements of Cash Flows 
　　　　　　　　　　　　　　　　 (US$ thousands)
　　　　　　　　　　　　　　　　   (Unaudited)

　　　　　　　　　　　　　　　　　　　　　　   For the Year　　 For the Year 
　　　　　　　　　　　　　　　　　　　　　　　　　　  Ended　　　　　　Ended 
　　　　　　　　　　　　　　　　　　　　　　   December 31,　　 December 31, 
　　　　　　　　　　　　　　　　　　　　　　　　　　   2008　　　　　　 2009 
　　Cash Flows From Operating Activities　　　　　　　　　　　　　　　　 
　　Net Income (Loss)　　　　　　　　　　　　　　  $(20,660)　　　　 $12,583 
　　Adjustments to reconcile net income to　　　　　　　　　　　　　　   
　　 net cash provided by operating activities　　　　　　　　　　　　　　　　　　 
　　  Share-based compensation　　　　　　　　　　　　2,281　　　　　　4,212 
　　  Depreciation and amortization　　　　　　　　   2,868　　　　　　2,941 
　　  Disposal of property and equipment　　　　　　　　(20)　　　　　　  72 
　　  Provision of bad debt　　　　　　　　　　　　　　  --　　　　　　  266 
　　  Investment impairment loss　　　　　　　　　　　　 --　　　　　　1,500 
　　  Goodwill impairment loss　　　　　　　　　　   21,624　　　　　　   -- 
　　  Amortization of the debt discount　　　　　　　　  --　　　　　　  300 
　　  Investment income　　　　　　　　　　　　　　　　  --　　　　　　 (207)
　　  Changes in operating assets and　　　　　　　　　　　　　　　　   
　　   liabilities　　　　　　　　　　　　　　　　　　6,428　　　　   (7,553)
　　Net Cash Provided by Operating　　　　　　　　　　　　　　　　　　   
　　 Activities　　　　　　　　　　　　　　　　　　  12,521　　　　   14,114 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Cash Flows From Investing Activities　　　　　　　　　　　　　　　　 
　　Purchases of subsidiaries　　　　　　　　　　　　　　--　　　　   (6,687)
　　Purchase of property and equipment　　　　　　   (1,879)　　　　  (1,599)
　　Purchase of trading securities　　　　　　　　　　   --　　　　　　 (610)
　　Proceeds from disposal of property　　　　　　　　   31　　　　　　　　4 
　　Proceeds from disposal of trading　　　　　　　　　　　　　　　　　　
　　 securities　　　　　　　　　　　　　　　　　　　　  --　　　　　　  718 
　　Purchase of long-term investment　　　　　　　　 (2,964)　　　　　　  -- 
　　Net Cash Used in Investing Activities　　　　　　(4,812)　　　　  (8,174)
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Cash Flows From Financing Activities　　　　　　　　　　　　　　　　 
　　Proceeds from issuance of convertible note　　　　   --　　　　　　6,775 
　　Proceeds from exercise of share options　　　　　　  --　　　　　　1,535 
　　Stock Repurchase　　　　　　　　　　　　　　　　   (760)　　　　 (11,108)
　　Net Cash Used in Financing Activities　　　　　　  (760)　　　　  (2,798)
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Effect of foreign exchange rate changes　　　　   6,762　　　　　　   93 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Net increase in Cash and Cash　　　　　　　　　　　　　　　　　　   
　　 Equivalents　　　　　　　　　　　　　　　　　　 13,711　　　　　　3,235 
　　Cash and Cash Equivalents, Beginning of　　　　　　　　　　　　　　  
　　 Period　　　　　　　　　　　　　　　　　　　　$122,343　　　　 $136,054 
　　Cash and Cash Equivalents, End of　　　　　　　　　　　　　　　　　　
　　 Period　　　　　　　　　　　　　　　　　　　　$136,054　　　　 $139,289 



　　　　　　　　　　　　　　　　KongZhong Corporation
　　　　　　　　　　  Condensed Consolidated Balance Sheets 
　　　　　　　　　　　　　　　　  (US$ thousands)
　　　　　　　　　　　　　　　　　　(Unaudited)

　　　　　　　　　　　　　　　　　　December 30, September 30, December 31,
　　　　　　　　　　　　　　　　　　　　   2008　　　　  2009　　　　2009 
　　Cash and cash equivalents　　　　  $136,054　　  $133,980　　$139,289 
　　Short-term investments　　　　　　　　   --　　　　　　26　　　　 101 
　　Accounts receivable (net)　　　　　　16,196　　　　23,463　　  25,277 
　　Other current assets　　　　　　　　  3,389　　　　 6,745　　   4,908 
　　Total current assets　　　　　　　　155,639　　   164,214　　 169,575 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Rental deposits　　　　　　　　　　　　 524　　　　   582　　　　 597 
　　Intangible assets (net)　　　　　　　　 674　　　　 1,849　　   2,285 
　　Property and equipment (net)　　　　  3,368　　　　 3,107　　   3,116 
　　Long-term investments　　　　　　　　 2,964　　　　 2,964　　   1,464 
　　Goodwill　　　　　　　　　　　　　　 15,683　　　　21,262　　  23,042 
　　Total assets　　　　　　　　　　   $178,852　　  $193,978　　$200,079 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Accounts payable　　　　　　　　　　$10,792　　   $11,161　　 $13,265 
　　Other current liabilities　　　　　　 7,316　　　　10,479　　  10,300 
　　Total current liabilities　　　　　　18,108　　　　21,640　　  23,565 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Convertible notes　　　　　　　　　　　　--　　　　 2,767　　   3,001 
　　Non-current deferred tax　　　　　　　　　　　　　　　　　　　　　　 
　　 liability　　　　　　　　　　　　　　   56　　　　   400　　　　 472 
　　Total liabilities　　　　　　　　   $18,164　　   $24,807　　 $27,038 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Shareholders' equity　　　　　　　　160,688　　   169,171　　 173,041 
　　Total liabilities &amp;　　　　　　　　　　　　　　　　　　　　　　　　  
　　 shareholders' equity　　　　　　  $178,852　　  $193,978　　$200,079 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 

　　Non-GAAP Financial Measures 

　　To supplement the unaudited condensed statements of income presented in accordance with US GAAP, the Company uses non-GAAP financial measures (Non-GAAP Financial Measures) of net income and net income per diluted ADS, which are adjusted from results based on GAAP to exclude certain infrequent or unusual or non-cash based expenses, gains and losses. The Non-GAAP Financial Measures are provided as additional information to help both management and investors compare business trends among different reporting periods on a consistent and more meaningful basis and enhance investors' overall understanding of the Company's current financial performance and prospects for the future. 

　　The Non-GAAP Financial Measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. In addition, our calculation of the Non-GAAP Financial Measures may be different from the calculation used by other companies, and therefore comparability may be limited. 

　　For the periods presented, the Company's non-GAAP net income and non-GAAP net income per diluted ADS exclude, as applicable, the amortization of intangibles, share-based compensation expense and interest expense on convertible notes. 

　　Reconciliation of the Company's Non-GAAP financial measures to the GAAP financial measures is set forth below. 


　　　　　　　　　　　　　　　　   For the Three For the Three For the Three 
　　　　　　　　　　　　　　　　　　Months Ended  Months Ended  Months Ended 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　　　　　　　　　　　　　　　　　 December 31, September 30,  December 31, 
　　　　　　　　　　　　　　　　　　　　　　2008　　　　  2009　　　　  2009 
　　　　　　　　　　　　　　　　 (US$ thousands) (US$ thousands)(US$ thousands)
　　GAAP Net  Income (Loss)　　　　　　　　 $522　　　　$4,496　　　　$2,017 
　　Share-based compensation　　　　　　　　 418　　　　 1,229　　　　 1,248 
　　Financial expense on　　　　　　　　　　　　　　　　　　　　　　　　 
　　 convertible notes　　　　　　　　　　　　--　　　　   234　　　　   234 
　　Amortization of intangibles　　　　　　  152　　　　   319　　　　   441 
　　Investment impairment  loss　　　　　　   --　　　　　　--　　　　 1,500 
　　Non-GAAP Net Income　　　　　　　　   $1,092　　　　$6,278　　　　$5,440 
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 
　　Non-GAAP diluted net income　　　　　　
　　 per ADS (Note 1)　　　　　　　　　　  $0.03　　　　 $0.16　　　　 $0.13

　　Note 1: The non-GAAP adjusted net income per ADS is computed using 
　　non-GAAP net income and number of ADS used in GAAP diluted EPS calculation, 
　　where the number of ADS is adjusted for dilution due to convertible notes 
　　issued to Nokia Growth Partners, or equivalent to 41.17 million ADS.


　　About KongZhong:

　　KongZhong Corporation is a leading mobile Internet company in China. The Company delivers wireless value-added services to consumers in China through multiple technology platforms including WAP, multimedia messaging service (MMS), JAVATM, short messaging service (SMS), interactive voice response (IVR), and color ring-back tone (CRBT). The Company operates three wireless Internet sites, Kong.net, Ko.cn and cn.NBA.com, which enable users to access media, entertainment and community content directly from their mobile phones. The Company also designs and operates mobile games, including mobile online games, JAVA games and WAP games.

　　Safe Harbor Statement: 

　　This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding trends in the wireless value-added services, wireless media and mobile games industries and our future results of operations, financial condition and business prospects. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends and our results may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, continued competitive pressure in China's wireless value-added services, wireless media and mobile games industries and the effect of such pressure on prices; unpredictable changes in technology, consumer demand and usage preferences in the market; the state of and any change in our relationship with China's telecommunications operators; our dependence on the billing systems of telecommunications operators for our performance; the outcome of our investment of operating income generated from the WVAS segment into the development of our wireless Internet segment and mobile games segment; changes in the regulations or policies of the Ministry of Industry and Information Technology and other relevant government authorities; and changes in political, economic, legal and social conditions in China, including the Chinese government's policies with respect to economic growth, foreign exchange, foreign investment and entry by foreign companies into China's telecommunications market. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.]]></detail>
		<source><![CDATA[SOURCE  KongZhong Corporation]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100220611-1.html</link>
		<title>FUQI International Provides Preliminary Fourth Quarter Financial Results; Announces Delay in Filing of Form 10-K for 2009</title>
		<author>PR Newswire Asia</author>
		
		<category>Leisure/Sport</category>
		
		<category>Finance</category>
		
		<pubDate>Wed, 17 Mar 2010 05:18:00 +0800</pubDate>
		<guid>4028ee8c2766a903012768dab71e0023</guid>
		<description><![CDATA[　　SHENZHEN, China, March 17 /PRNewswire-Asia/ -- FUQI International, Inc. (Nasdaq GS: FUQI) today announced the preliminary release of fourth quarter 2009 unaudited financial results and that it will delay the release of its finalized fourth quarter and year ended 2009 financial results. The Company will also file an extension for the filing of its Form 10-K for 2009. 

　　The Company anticipates total revenue for the 2009 fourth quarter to be approximately $175-$180 million, compared to its original fourth quarter 2009 forecast of $182.0-$191.0 million. Consolidated gross margin is expected to be in the 9%-10% range and diluted earnings per share is expected to be in the range of $0.24 to $0.28 per share compared to original diluted per share estimates of $0.55-$0.60. 

　　Mr. Yu Kwai Chong, Chairman and CEO of FUQI International commented, "We estimate slightly lower sales in the fourth quarter as some of our customers delayed orders to coincide more closely with the Chinese New Year holiday which occurred in mid-February. We also estimate that our gross margin was impacted by a higher product mix of lower margin wholesale products such as commemorative Chinese New Year gold bars which we estimate resulted in wholesale gross margin performance below our historic range. Fulfilling such orders can increase our market share and enhance brand awareness with new and existing customers, both of which are important for the long-term development of our wholesale business."

　　"As we evaluate the 2009 fourth quarter performance of our retail business, we continue to be pleased with its expansion. Our retail segment for fourth quarter 2009 is expected to be in the range of $15.5-16.5 million compared to $6.0 million in the prior year period. Fourth quarter 2009 retail gross margin is expected to be in the range of 27%-28%." 

　　"General order demand in both our wholesale and retail businesses remains solid for 2010 and we are placing a strong emphasis on maximizing our overall margin performance and the growth of our retail business as we progress through this year." 

　　Also today, the Company announced that it has filed a Form 12b-25 with the Securities and Exchange Commission to delay the filing of its Annual Report on Form 10-K for the year ended December 31, 2009. The Company has been conducting an assessment of its internal controls as of December 31, 2009 in accordance with the Company's Sarbanes-Oxley Act compliance procedures. Although the Company's assessment procedures are not yet complete, the Company believes that at least one of the identified deficiencies related to its 2009 Sarbanes-Oxley Section 404 compliance audit, thus far, constitutes a material weakness, including but not limited to the Company's period-end closing process as of December 31, 2009. The complete and final results of the Company's assessment of its internal controls will be disclosed in its Annual Report on Form 10-K for the year ended December 31, 2009. 

　　As a result of the findings of the 2009 Sarbanes-Oxley Section 404 audit, thus far, the Company identified certain accounting errors that are expected to have a material impact on the previously issued quarterly financial statements for the first three quarters of 2009. Management and the accounting personnel require additional time to evaluate such effects on the previously filed quarterly financial statements of 2009. Because the review is still underway, the Company is unable to accurately estimate at this time the impacts on the Company's interim financial statements for the first three quarters of 2009. However, it is expected that as a result of the accounting errors, the cost of sales for each of the periods were understated and gross profit and net income, as a result, were accordingly overstated. Based on the Company's latest estimate, the earnings per share included in the previously issued financial statements for the nine months ended September 30, 2009 were overstated by approximately $0.15-$0.19 per share based on approximately 23.0 million weighted average number of shares for the nine months ended September 30, 2009. The foregoing estimate is based only upon preliminary information available to the Company as of the date of this press release, is subject to adjustment in connection with its ongoing review, and has not been audited by its independent registered public accounting firm. Due to the Company's ongoing internal analysis, the Company is currently unable to provide estimated results of operations for the year ended December 31, 2009. The Company will file its Annual Report on Form 10-K as soon as possible; however, there can be no assurance that the report will be filed within the extended 15 day deadline.

　　Mr. Chong continued, "We regret the delay and appreciate the patience of our stockholders as the Company works to complete its financial closing process. We take our responsibility to provide complete and accurate financial information seriously and are taking proactive steps that we believe are appropriate under these circumstances. Although the Sarbanes-Oxley Act Section 404 compliance has been a significant challenge for the Company, we believe our continuing efforts to improve our internal control and human resources in operational entities will make our Company stronger in the long term. As a fast growing company, we remain focused that our operating entity financial accounting infrastructure grows stronger and we are committed to invest more resources in our internal auditing function as well. We remain confident in the fundamental soundness of our businesses and look forward to discussing our 2009 financial results and developments for 2010 when we report our fourth quarter and full year 2009 financial results." 

　　About FUQI International 

　　Based in Shenzhen, China, FUQI International, Inc. is a leading designer, producer and seller of high quality precious metal jewelry in China. Fuqi develops, promotes, manufactures and sells a broad range of products consisting of unique styles and designs made from gold and other precious metals such as platinum and Karat gold.

　　Safe Harbor Statement

　　This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects" or similar expressions. These forward-looking statements may also include statements about the Company's proposed discussions related to its business or growth strategy, which is subject to change. Such information is based upon expectations of the Company's management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions. Such risks and uncertainties include, but are not limited to, the completion and audit of the Company's financial statements for the fourth quarter and year end 2009; the completion of the Company's review of accounting errors in the first three quarter of 2009 and the effect on its results of operations for such periods; the Company's ability to remediate the significant deficiencies and/or material weakness(es) in its internal controls; risks related to our acquisition of Temix in August 2008, adverse capital and credit market conditions, the vulnerability of the Company's business to a general economic downturn in China; fluctuation and unpredictability of costs related the gold, platinum and precious metals and other commodities used to make the Company's products; the Company's ability to obtain all necessary government certifications and/or licenses to conduct its business; the Company's recent entry into the retail jewelry market; the Company's reliance on one source for gold; and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company does not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see the Company's most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and its subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .

]]></description>
		<detail><![CDATA[　　SHENZHEN, China, March 17 /PRNewswire-Asia/ -- FUQI International, Inc. (Nasdaq GS: FUQI) today announced the preliminary release of fourth quarter 2009 unaudited financial results and that it will delay the release of its finalized fourth quarter and year ended 2009 financial results. The Company will also file an extension for the filing of its Form 10-K for 2009. 

　　The Company anticipates total revenue for the 2009 fourth quarter to be approximately $175-$180 million, compared to its original fourth quarter 2009 forecast of $182.0-$191.0 million. Consolidated gross margin is expected to be in the 9%-10% range and diluted earnings per share is expected to be in the range of $0.24 to $0.28 per share compared to original diluted per share estimates of $0.55-$0.60. 

　　Mr. Yu Kwai Chong, Chairman and CEO of FUQI International commented, "We estimate slightly lower sales in the fourth quarter as some of our customers delayed orders to coincide more closely with the Chinese New Year holiday which occurred in mid-February. We also estimate that our gross margin was impacted by a higher product mix of lower margin wholesale products such as commemorative Chinese New Year gold bars which we estimate resulted in wholesale gross margin performance below our historic range. Fulfilling such orders can increase our market share and enhance brand awareness with new and existing customers, both of which are important for the long-term development of our wholesale business."

　　"As we evaluate the 2009 fourth quarter performance of our retail business, we continue to be pleased with its expansion. Our retail segment for fourth quarter 2009 is expected to be in the range of $15.5-16.5 million compared to $6.0 million in the prior year period. Fourth quarter 2009 retail gross margin is expected to be in the range of 27%-28%." 

　　"General order demand in both our wholesale and retail businesses remains solid for 2010 and we are placing a strong emphasis on maximizing our overall margin performance and the growth of our retail business as we progress through this year." 

　　Also today, the Company announced that it has filed a Form 12b-25 with the Securities and Exchange Commission to delay the filing of its Annual Report on Form 10-K for the year ended December 31, 2009. The Company has been conducting an assessment of its internal controls as of December 31, 2009 in accordance with the Company's Sarbanes-Oxley Act compliance procedures. Although the Company's assessment procedures are not yet complete, the Company believes that at least one of the identified deficiencies related to its 2009 Sarbanes-Oxley Section 404 compliance audit, thus far, constitutes a material weakness, including but not limited to the Company's period-end closing process as of December 31, 2009. The complete and final results of the Company's assessment of its internal controls will be disclosed in its Annual Report on Form 10-K for the year ended December 31, 2009. 

　　As a result of the findings of the 2009 Sarbanes-Oxley Section 404 audit, thus far, the Company identified certain accounting errors that are expected to have a material impact on the previously issued quarterly financial statements for the first three quarters of 2009. Management and the accounting personnel require additional time to evaluate such effects on the previously filed quarterly financial statements of 2009. Because the review is still underway, the Company is unable to accurately estimate at this time the impacts on the Company's interim financial statements for the first three quarters of 2009. However, it is expected that as a result of the accounting errors, the cost of sales for each of the periods were understated and gross profit and net income, as a result, were accordingly overstated. Based on the Company's latest estimate, the earnings per share included in the previously issued financial statements for the nine months ended September 30, 2009 were overstated by approximately $0.15-$0.19 per share based on approximately 23.0 million weighted average number of shares for the nine months ended September 30, 2009. The foregoing estimate is based only upon preliminary information available to the Company as of the date of this press release, is subject to adjustment in connection with its ongoing review, and has not been audited by its independent registered public accounting firm. Due to the Company's ongoing internal analysis, the Company is currently unable to provide estimated results of operations for the year ended December 31, 2009. The Company will file its Annual Report on Form 10-K as soon as possible; however, there can be no assurance that the report will be filed within the extended 15 day deadline.

　　Mr. Chong continued, "We regret the delay and appreciate the patience of our stockholders as the Company works to complete its financial closing process. We take our responsibility to provide complete and accurate financial information seriously and are taking proactive steps that we believe are appropriate under these circumstances. Although the Sarbanes-Oxley Act Section 404 compliance has been a significant challenge for the Company, we believe our continuing efforts to improve our internal control and human resources in operational entities will make our Company stronger in the long term. As a fast growing company, we remain focused that our operating entity financial accounting infrastructure grows stronger and we are committed to invest more resources in our internal auditing function as well. We remain confident in the fundamental soundness of our businesses and look forward to discussing our 2009 financial results and developments for 2010 when we report our fourth quarter and full year 2009 financial results." 

　　About FUQI International 

　　Based in Shenzhen, China, FUQI International, Inc. is a leading designer, producer and seller of high quality precious metal jewelry in China. Fuqi develops, promotes, manufactures and sells a broad range of products consisting of unique styles and designs made from gold and other precious metals such as platinum and Karat gold.

　　Safe Harbor Statement

　　This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects" or similar expressions. These forward-looking statements may also include statements about the Company's proposed discussions related to its business or growth strategy, which is subject to change. Such information is based upon expectations of the Company's management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions. Such risks and uncertainties include, but are not limited to, the completion and audit of the Company's financial statements for the fourth quarter and year end 2009; the completion of the Company's review of accounting errors in the first three quarter of 2009 and the effect on its results of operations for such periods; the Company's ability to remediate the significant deficiencies and/or material weakness(es) in its internal controls; risks related to our acquisition of Temix in August 2008, adverse capital and credit market conditions, the vulnerability of the Company's business to a general economic downturn in China; fluctuation and unpredictability of costs related the gold, platinum and precious metals and other commodities used to make the Company's products; the Company's ability to obtain all necessary government certifications and/or licenses to conduct its business; the Company's recent entry into the retail jewelry market; the Company's reliance on one source for gold; and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company does not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see the Company's most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and its subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .

]]></detail>
		<source><![CDATA[SOURCE  FUQI International, Inc.]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100220111-1.html</link>
		<title>Focus Media Reports Fourth Quarter and Full Year 2009 Results</title>
		<author>PR Newswire Asia</author>
		
		<category>AD/Marketing/Media</category>
		
		<category>Finance</category>
		
		<pubDate>Wed, 17 Mar 2010 04:30:00 +0800</pubDate>
		<guid>4028ee8c2766a903012768564240001a</guid>
		<description><![CDATA[
　　SHANGHAI, March 17 /PRNewswire-Asia/ -- Focus Media Holding Limited (Nasdaq: FMCN), China's largest digital media group, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2009.

　　Basis of Presentation

　　The results of the internet business have been restated in this earning release to reflect the disposal of certain subsidiaries which have been classified as discontinued operations for all periods presented.

　　Highlights for Fourth Quarter 2009:
　　-- Total net revenue for fourth quarter 2009 was $144.3 million, of which 
　　   the aggregate net revenue for the LCD display network, in-store network 
　　   and poster frame network was $98.3 million, surpassing the Company's 
　　   previous guidance of $92 million and the aggregate net revenue for the 
　　   movie theatre and outdoor traditional billboard network and Internet 
　　   advertising services was $46.0 million, surpassing the Company's 
　　   previous guidance of $39 million.
　　-- GAAP net loss attributable to Focus Media was $52.5 million or a loss 
　　   of $0.39 per fully diluted ADS, compared to net loss attributable to 
　　   Focus Media of $127.6 million for the third quarter of 2009 or a loss 
　　   of $0.99 per fully diluted ADS and net loss attributable to Focus Media 
　　   of $802.5 million for the fourth quarter of 2008 or a loss of $6.24 per 
　　   fully diluted ADS.
　　-- Non-GAAP net income attributable to Focus Media for the fourth quarter 
　　   of 2009 was $34.7 million or an income of $0.26 per ADS, compared to 
　　   non-GAAP net income attributable to Focus Media of $7.9 million for the 
　　   third quarter of 2009 or an income of $0.06 per ADS and non-GAAP net 
　　   income of $50.0 million for the fourth quarter of 2008 or an income of 
　　   $0.39 per ADS.
　　-- Net cashflow from operations in the fourth quarter of 2009 was 
　　   $72.3 million, an increase of 96% from $ 36.8 million in the third 
　　   quarter of 2009.

　　Highlights for Full Year 2009:
　　-- Total net revenue for full year 2009 was $505.0 million, declining 21% 
　　   from $642.3 million for full year 2008, substantially due to 
　　   unfavorable macro-economic condition and strategic reorganization 
　　   related to several lines of our businesses. The aggregate net revenue 
　　   for the LCD display network, in-store network and poster frame network 
　　   for full year 2009 was $338.1 million, declining 25% from 
　　   $450.6 million for full year 2008. The aggregate net revenue for the 
　　   movie theatre and outdoor traditional billboard network and Internet 
　　   advertising services was $166.9 million, declining 13% from 
　　   $191.7 million for full year 2008.
　　-- GAAP net loss attributable to Focus Media was $208.8 million for full 
　　   year 2009 or a loss of $1.61 per fully diluted ADS, compared to net 
　　   loss attributable to Focus Media of $770.7 million for full year 2008, 
　　   or a loss of $5.98 per fully diluted ADS.
　　-- Non-GAAP net income attributable to Focus Media for full year 2009 was 
　　   $89.4 million or an income of $0.69 per ADS, compared to non-GAAP net 
　　   income attributable to Focus Media of $221.9 million for full year 2008 
　　   or an income of $1.72 per ADS.

　　Highlights for Balance Sheet and Cash Flow Results of Fourth Quarter and Full Year 2009:
　　-- Cash and cash equivalents was $568.2 million as of December 31, 2009, 
　　   including the subscription price of $142.4 million received from 
　　   Chairman and CEO Mr. Jason Jiang for purchase of 75,000,000 newly 
　　   issued shares in our Company, and representing an increase of 48% from 
　　   $383.1 million as of September 30, 2009.
　　-- Net accounts receivable for the LCD display network, in-store network 
　　   and poster frame network was $96.1 million as of December 31, 2009, a 
　　   decline of 16% from $114.3 million as of September 30, 2009. Days sales 
　　   outstanding on a rolling basis was 88 days in the fourth quarter of 
　　   2009 versus 118 days for the third quarter of 2009.
　　-- Net accounts receivable for the movie theatre and outdoor traditional 
　　   billboard network and Internet advertising services was $76.6 million 
　　   as of December 31, 2009.
　　-- Net cashflow from operations in full year 2009 was $160.7 million, as 
　　   compared to $168.4 million in full year 2008.
　　-- Capital expenditures were $1.0 million and $10.7 million for the fourth 
　　   quarter of 2009 and full year 2009 respectively.
　　-- Earn-out payments related to historical acquisitions paid in the fourth 
　　   quarter of 2009 were $19.3 million, of which $10.7 million was 
　　   attributable to the poster frame network and LCD display network and 
　　   $8.6 million was attributable to the traditional outdoor billboard and 
　　   internet businesses. For full year 2009, total earn-out payments 
　　   related to historical acquisitions paid were $92.4 million, of which 
　　   $62.3 million was attributable to the poster frame network and LCD 
　　   display network and $30.1 million was attributable to traditional 
　　   outdoor billboard and internet businesses.


　　Jason Jiang, Chairman and CEO of Focus Media said, "After going through a year of restructuring, Focus Media has substantially resolved its past problems and re-entered on to a path of sustainable growth. At the same time, the Chinese advertising market recovery has presented us with very attractive development opportunities. We believe we are well positioned to achieve meaningful cash flow and earnings growth in 2010. Starting in 2010, Focus Media will focus on dedicating our resources to developing networks in lower tier cities for our LCD, Poster frame as well as in-store networks. We believe the investment we are making in lower tier cities will help to lay the foundation of growth for Focus Media over the next three to five years. Separately, we will offer incentives to motivate internet and outdoor billboard management so as to promote sustainable long term development of the respective business segments."

　　Kit Low, CFO added, "Our fourth quarter 2009 results demonstrate the robust execution capability of the Focus Media team as well as the significant positive operating leverage of the Focus Media business model. In the fourth quarter 2009 the Company generated a free cash flow of $43.0 million on $34.7 million of non-GAAP net income with operating cashflow of $72.3 million, versus an investing cashflow of $29.3 million. We expect this trend of positive cashflow generation to continue as the Company leverages the 2010 uptrend of the Chinese advertising market."

　　Fourth Quarter 2009 financial results

　　Advertising net revenue from the LCD display network was $64.1 million for the fourth quarter of 2009, an increase of 14% from $56.0 million for the third quarter of 2009 and an increase of 8% from $59.3 million for the fourth quarter of 2008.

　　Advertising net revenue from the poster frame network was $26.8 million for the fourth quarter of 2009, an increase of 21% from $22.1 million for the third quarter of 2009 but a decline of 32% from $39.2 million for the fourth quarter of 2008.

　　Advertising net revenue from the in-store network was $7.4 million for the fourth quarter of 2009, slightly decreasing from $7.6 million for the third quarter of 2009 and decreasing by 22% from $9.5 million for the fourth quarter of 2008.

　　As of December 31, 2009, the total installed base of LCD displays in our LCD display network was 131,006 nationwide, including 125,595 displays through our directly owned networks, and 5,411 displays through our regional distributors, as compared to 130,890 as of September 30, 2009. The total number of non-digital frames available for sale in our poster frame network was 225,104 as of December 31, 2009, as compared to 225,762 as of September 30, 2009. In addition, as of December 31, 2009, we had 35,972 digital frames installed in our poster frame network, as compared to 36,539 as of September 30, 2009. The total number of displays installed in our in-store network was 44,517 as of December 31, 2009, as compared to 45,195 as of September 30, 2009.

　　Advertising net revenue from the movie theater and traditional outdoor billboard network was $12.6 million for the fourth quarter of 2009, relatively constant compared to $12.5 million for the third quarter of 2009 and a 42% decrease compared to $21.6 million for the fourth quarter of 2008 due to restructuring in traditional outdoor billboard network in the third quarter of 2009.

　　Internet advertising service net revenue was $33.4 million in the fourth quarter of 2009, increased by 18% as compared to $28.2 million for the third quarter of 2009, and 25% as compared to $26.7 million for the fourth quarter of 2008.

　　Non-GAAP gross profit for the LCD display network for the fourth quarter of 2009 was $50.6 million, representing an increase of 50% from $33.7 million for the third quarter of 2009 and an increase of 15% from $44.0 million for the fourth quarter of 2008.

　　Non-GAAP gross profit for the poster frame network for the fourth quarter of 2009 was $10.8 million, representing a significant increase over $1.7 million for the third quarter of 2009 but a decrease of 55% from $23.8 million for the fourth quarter of 2008.

　　Non-GAAP gross profit for the in-store network for the fourth quarter of 2009 was $5.0 million, compared to non-GAAP gross loss of $3.3 million for the third quarter of 2009 primarily due to the Company's settling of a rental dispute in the fourth quarter and releasing the corresponding rental liabilities accrued in the previous periods and compared to non-GAAP gross profit of $0.5 million for the fourth quarter of 2008 as the Company managed to lower rental costs in the business.

　　Non-GAAP gross profit for the movie theater and traditional outdoor billboard networks for the fourth quarter of 2009 was $2.5 million, representing a 32% decline from $3.7 million for the third quarter of 2009 and a 66% decline from $7.3 million for the fourth quarter of 2008, mainly due to the restructuring in the traditional outdoor billboard network as one subsidiary was disposed in late third quarter of 2009.

　　Non-GAAP gross profit from our Internet advertising services for the fourth quarter of 2009 was $6.0 million, a slight increase from $5.6 million for the third quarter of 2009 and from $5.3 million for the fourth quarter of 2008.

　　Non-GAAP operating expense for the fourth quarter of 2009 was $33.9 million, increasing by 14% from $29.8 million for the third quarter of 2009 and 7% from $31.8 million for the fourth quarter of 2008.

　　Business Outlook for First Quarter 2010

　　The Company provides the following guidance with respect to the first quarter ending March 31, 2010:

　　Net revenues for LCD display networks, in-store networks and poster frame networks are expected to be in the range of $78-80 million, the mid-point of which would represent year-on-year growth of 23%. Net revenues for the movie theatre and traditional outdoor billboard and internet advertising services are expected to be in the range of $37-39 million. Company non-GAAP net income is expected to be in the range of $20-23 million.

　　Based on the existing business outlook, the Company expects earn-out payment remaining in 2010 to be no more than $40 million.

　　Announced Share Repurchase Program

　　On Feb 2, 2010, Focus Media announced that its board of directors has approved a share repurchase program up to $200 million. The Company expects to implement this share repurchase program over the course of the next 12 months post announcement, in a manner consistent with market conditions and the interest of the shareholders and in compliance with the Company's securities trading policy. Focus Media's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. Focus Media plans to fund repurchases made under this program from its available cash balance.

　　Management Buy-Out in Internet Division

　　Certain Allyes employees and management and directors and certain members of the Company's management and directors recently entered into a definitive agreement with the Company and Allyes in January 2010 to buy-out an aggregate 38% interest in Allyes from the Company. Pursuant to the terms of the agreements, the purchasing Allyes and Company management members paid an aggregate $13.3 million for a 38% interest of Allyes, when taking into account offshore and onshore transactions. The purchase price to management took into account various factors including the disposition of various smaller Internet divisions during the fourth quarter of 2009 and the results of an independent third-party valuation report, however the Company is currently assessing the accounting implications of the transaction. The transaction was approved by all independent directors on the board. This transaction was part of initiatives being taken by the Company to incentivize management to enhance the future business model of Allyes and thereby to seek long term sustainable growth for the company and investors.

　　USE OF NON-GAAP FINANCIAL MEASURES

　　In addition to Focus Media's consolidated financial results under GAAP, the Company also provides non-GAAP financial measures, including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating profit (loss) and non-GAAP net income, all excluding share-based compensation expenses, amortization of acquired intangible assets, loss from disposal of previously acquired subsidiaries, impairment charges of certain assets, including acquired intangible assets, goodwill, impairment and termination charges related to ceasing expansion of digital poster frame networks and boat-based advertising platform, write-off of receivables from ex-shareholders of disposed business and one-off charges from expensing IPO expenditures as a result of termination of IPO process of Allyes. The Company believes that these non-GAAP financial measures provide investors with another method for assessing Focus Media's operating results in a manner that is focused on the performance of its ongoing operations. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP results with non-GAAP results in the attached financial information. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of Focus Media and when planning and forecasting future periods. The Company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliation between these financial measures.


　　　　　　　　　　　　 Focus Media Holding Ltd.
　　　　　　　　　　 Reconciliation of GAAP to non-GAAP
　　(U.S. Dollar in thousands, except percentages, share and per-share data)
　　　　　　　　　　　　　　　　(Unaudited)

　　　　　　　　　　　　　　　　　　   Three months ended December 31, 2009
　　　　　　　　　　　　　　　　　　　　   GAAP　　   (1)　　 (2)　　 (3)

　　Gross Profit
　　LCD display network　　　　　　　　　　49,498　　  285　　 839　　  --
　　Poster Frame network　　　　　　　　　　9,148　　   --   1,646　　  --
　　In-store network　　　　　　　　　　　　5,001　　   --　　  --　　  --
　　Internet advertising　　　　　　　　　　5,778　　   --　　 207　　  --
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　2,046　　   --　　 443　　  --
　　Total Gross Profit　　　　　　　　　　 71,471　　  285   3,135　　  --

　　Operating Expense　　　　　　　　　　  86,258  (34,779) (1,254)　　 --

　　Operating (loss) profit　　　　　　   (14,787)  35,064   4,389　　  --

　　Net income (loss) attributable to
　　 Focus Media
　　　　　　　　　　　　　　　　　　　　  (52,499)  35,064   4,672  31,103


　　　　　　　　　　　　　　　　　　　　　　  (4)　　  (5)　　 (6)  Non-
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　--　　   --　　  --  50,622
　　Poster Frame network　　　　　　　　　　   --　　   --　　  --  10,794
　　In-store network　　　　　　　　　　　　   --　　   --　　  --   5,001
　　Internet advertising　　　　　　　　　　   --　　   --　　  --   5,985
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   --　　   --　　  --   2,489
　　Total Gross Profit　　　　　　　　　　　　 --　　   --　　  --  74,891

　　Operating Expense　　　　　　　　　　 (14,027)  (4,351)  2,067  33,914

　　Operating (loss) profit　　　　　　　　14,027　　4,351  (2,067) 40,977

　　Net income (loss) attributable to
　　 Focus Media
　　　　　　　　　　　　　　　　　　　　   14,027　　4,351  (2,067) 34,651

　　(1). Share-based compensation, of which $ 14.6 million was attributable to 
　　　　 LCD display network, poster frame network and in-store network and 
　　　　 $20.5 million was attributable to cancellation of stock options in 
　　　　 internet business.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from impairment and disposal of previously acquired subsidiaries, 
　　　　 all attributable to internet business.
　　(4). Impairment charges of goodwill as a result of earn-out payments in 
　　　　 poster frame business.
　　(5). Write-off of receivables from ex-shareholders of disposed business.
　　(6). Settlement of disputed liabilities in previously disposed wireless 
　　　　 business.


　　　　　　　　　　　　　　　　　　Three months ended September 30, 2009
　　　　　　　　　　　　　　　　　　　　　　   GAAP　　   (1)　　 (2)
　　Gross Profit
　　LCD display network　　　　　　　　　　   17,177　　  306   3,607
　　Poster Frame network　　　　　　　　　　 (30,420)　　  --   5,131
　　In-store network　　　　　　　　　　　　  (3,844)　　  --　　  --
　　Internet advertising　　　　　　　　　　  (2,964)　　  --　　 393
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   3,001　　   --　　 663
　　Total Gross Profit　　　　　　　　　　   (17,050)　　 306   9,794

　　Operating Expense　　　　　　　　　　　　105,234   (8,467) (2,969)

　　Operating profit (loss)　　　　　　　　 (122,284)   8,773  12,763

　　Net income (loss) attributable to Focus
　　 Media　　　　　　　　　　　　　　　　  (127,598)   8,773  13,865


　　　　　　　　　　　　　　　　　　　　　　　　 (3)　　  (4)　　 (5)   Non-
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　   --　　3,169   9,462  33,721
　　Poster Frame network　　　　　　　　　　　　  --　　   --  26,983   1,694
　　In-store network　　　　　　　　　　　　　　  --　　   --　　 516  (3,328)
　　Internet advertising　　　　　　　　　　　　  --　　8,185　　  --   5,614
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　　　  --　　   --　　  --   3,664
　　Total Gross Profit　　　　　　　　　　　　　　--   11,354  36,961  41,365

　　Operating Expense　　　　　　　　　　　　(16,649) (45,456) (1,872) 29,821

　　Operating profit (loss)　　　　　　　　   16,649   56,810  38,833  11,544

　　Net income (loss) attributable to Focus
　　 Media　　　　　　　　　　　　　　　　　　25,944   57,300  29,593   7,877

　　(1). Share-based compensation.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries, of which loss 
　　　　 from disposal of subsidiaries was $3.7 million, loss from partial 
　　　　 disposal of equity interests in subsidiaries was $14.9 million and 
　　　　 loss from impairment of certain other assets was $7.3 million.
　　(4). Impairment charges of certain assets, including acquired intangible 
　　　　 assets and goodwill.
　　(5). Impairment and termination charges related to ceasing expansion of 
　　　　 digital poster frame networks and boat-based advertising platform.


　　　　　　　　　　　　　　　　　　　　 Three months ended December 31, 2008
　　　　　　　　　　　　　　　　　　　　　　 GAAP　　   (1)　　 (2)　　   (3)
　　Gross Profit 
　　LCD display network　　　　　　　　　　 27,217　　  314　　 865　　　　--
　　Poster Frame network　　　　　　　　　　21,572　　   --   2,257　　　　--
　　In-store network　　　　　　　　　　　　(3,397)　　  --　　 897　　  (248)
　　Internet advertising　　　　　　　　　　 4,483　　   --　　 814　　　　--
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 6,339　　   --　　 976　　　　--
　　`Total Gross Profit　　　　　　　　　　 56,214　　  314   5,809　　  (248)

　　Operating Expense　　　　　　　　　　  844,395  (12,330) (3,333) (193,822)

　　Operating profit (loss)　　　　　　   (788,181)  12,644   9,142   193,574

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　  (802,490)  12,644  10,611   208,238


　　　　　　　　　　　　　　　　　　　　　　  (4)　　  (5)　　 (6)   Non-GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　 --   15,574　　  --　　43,970
　　Poster Frame network　　　　　　　　　　　　--　　   --　　  --　　23,829
　　In-store network　　　　　　　　　　　　　　--　　3,290　　  --　　   542
　　Internet advertising　　　　　　　　　　　　--　　   --　　  --　　 5,297
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　　　--　　   --　　  --　　 7,315
　　`Total Gross Profit　　　　　　　　　　　　 --   18,864　　  --　　80,953

　　Operating Expense　　　　　　　　　　 (600,878)　　  --  (2,200)   31,832

　　Operating profit (loss)　　　　　　　　600,878   18,864   2,200　　49,121

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　   599,965   18,864   2,200　　50,032

　　(1). Share-based compensation.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries. 
　　(4). Impairment charges of certain assets, including acquired intangible 
　　　　 assets and goodwill.
　　(5). Impairment charges of fixed assets.
　　(6). Write-off of receivables from ex-shareholders of disposed business.



　　　　　　　　　　　　　　　　　　　　　　　　　　Twelve months ended
　　　　　　　　　　　　　　　　　　　　　　　　　　December 31, 2009
　　　　　　　　　　　　　　　　　　 GAAP　　  (1)　　 (2)　　  (3)　　  (4)
　　Gross Profit
　　LCD display network　　　　　　133,042　　1,504   4,446　　   --　　3,168
　　Poster Frame network　　　　　　 3,561　　   --   6,778　　   --　　   --
　　In-store network　　　　　　　　 6,176　　   --　　  15　　   --　　   --
　　Internet advertising　　　　　　 9,150　　   --   2,239　　   --　　8,746
　　Movie Theater &amp; Outdoor
　　 Billboard network　　　　　　  13,972　　   --   2,945　　   --　　   --
　　Total Gross Profit　　　　　　 165,901　　1,504  16,423　　   --   11,914

　　Operating Expense　　　　　　  320,551  (61,153) (6,563) (17,861) (94,775)

　　Operating profit (loss)　　   (154,650)  62,657  22,986   17,861  106,689

　　Net income (loss)
　　 attributable to Focus Media  (208,762)  62,657  27,279   58,259  113,046


　　　　　　　　　　　　　　　　　　  (5)　　  (6)　　 (7)　　 (8)   Non-GAAP

　　Gross Profit
　　LCD display network　　　　　　  9,462　　   --　　  --　　   --  151,622
　　Poster Frame network　　　　　　26,983　　   --　　  --　　   --   37,322
　　In-store network　　　　　　　　   516　　   --　　  --　　   --　　6,707
　　Internet advertising　　　　　　　　--　　   --　　  --　　   --   20,135
　　Movie Theater &amp; Outdoor
　　 Billboard network　　　　　　　　  --　　   --　　  --　　   --   16,917
　　Total Gross Profit　　　　　　  36,961　　   --　　  --　　   --  232,703

　　Operating Expense　　　　　　   (1,872)  (6,879) (2,466)   2,067  131,049

　　Operating profit (loss)　　　　 38,833　　6,879   2,466   (2,067) 101,654

　　Net income (loss)
　　 attributable to Focus Media　　29,593　　6,879   2,466   (2,067)  89,350


　　(1). Share-based compensation, of which $34.7 million was attributable to 
　　　　 LCD display network, poster frame network and in-store network and 
　　　　 $28.0 million was attributable to internet division.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries.
　　(4). Impairment charges of certain assets, including acquired intangible
　　　　 assets and goodwill.
　　(5). Impairment charges of fixed assets.
　　(6). Write-off of receivables from ex-shareholders of disposed business.
　　(7). One-off charges from expensing IPO expenditures as a result of 
　　　　 termination of IPO process of Allyes.
　　(8). Settlement of disputed liabilities in previously disposed wireless 
　　　　 business


　　　　　　　　　　　　　　　　　　　　Twelve months ended December 31, 2008
　　　　　　　　　　　　　　　　　　　　   GAAP　　   (1)　　  (2)　　   (3)
　　Gross Profit
　　LCD display network　　　　　　　　   163,537　　1,476　　3,711　　　　--
　　Poster Frame network　　　　　　　　   86,935　　   --　　9,571　　　　--
　　In-store network　　　　　　　　　　   (1,115)　　  --　　3,533　　  (248)
　　Internet advertising　　　　　　　　   25,510　　   --　　3,482　　　　--
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　   20,235　　   --　　3,845　　　　--
　　Total Gross Profit　　　　　　　　　　295,102　　1,476   24,142　　  (248)

　　Operating Expense　　　　　　　　　　 964,185  (41,023) (11,053) (193,822)

　　Operating profit (loss)　　　　　　  (669,083)  42,499   35,195   193,574

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　 (770,688)  42,499   40,980   288,121


　　　　　　　　　　　　　　　　　　　　　　 (4)　　  (5)　　  (6)   Non-GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　--   15,574　　   --   184,298
　　Poster Frame network　　　　　　　　　　   --　　   --　　   --　　96,506
　　In-store network　　　　　　　　　　　　   --　　3,290　　   --　　 5,460
　　Internet advertising　　　　　　　　　　   --　　   --　　   --　　28,992
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   --　　   --　　   --　　24,080
　　Total Gross Profit　　　　　　　　　　　　 --   18,864　　   --   339,336

　　Operating Expense　　　　　　　　　　(600,878)　　  --   (2,200)  115,209

　　Operating profit (loss)　　　　　　   600,878   18,864　　2,200   224,127

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　  599,965   18,864　　2,200   221,941

　　(1). Share-based compensation.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries. 
　　(4). Impairment charges of certain assets, including acquired intangible 
　　　　 assets and goodwill.
　　(5). Impairment charges of fixed assets.
　　(6). Write-off of receivables from ex-shareholders of disposed business.


　　CONFERENCE CALL

　　The Company will host a conference call to discuss the fourth quarter and full year 2009 results at 9:00 p.m. U.S. Eastern Time on March 16, 2010 (6:00 p.m. U.S. Pacific Time on March 16, 2010 and 9:00 a.m. Beijing/Hong Kong Time on March 17, 2010). The dial-in details for the live conference call are set forth below: U.S. Toll Free Number +1.800.510.0219, Hong Kong dial-in number +852.3002.1672, International dial-in number +1.617.614.3451; Pass code: 27499071.

　　A replay of the call will be available from March 16, 2010 12:00 pm until March 24, 2010 (US Eastern Time). The dial-in details for the replay are set forth below: U.S. Toll Free Number +1-888-286-8010, International dial-in number +1-617-801-6888; Pass code 19117078. Additionally, a live and archived web cast of this call will be available on the Focus Media web site at http://ir.focusmedia.cn .

　　SAFE HARBOR: FORWARD-LOOKING STATEMENTS

　　This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Focus Media may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Focus Media's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in Focus Media's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3 and 20-F, in each case as amended. Focus Media does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

　　This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

　　ABOUT FOCUS MEDIA HOLDING LIMITED

　　Focus Media Holding Limited (Nasdaq: FMCN) is China's leading multi- platform digital media company, operating the largest out-of-home advertising network in China using audiovisual digital displays, based on the number of locations and number of flat-panel television displays in our network. Through Focus Media's multi-platform digital advertising network, the company reaches urban consumers at strategic locations and point-of-interests over a number of media formats, including audiovisual television displays in buildings and stores, advertising poster frames and other new and innovative media, such as outdoor light-emitting diode or LED digital billboard and Internet advertising platforms. As of December 31, 2009, Focus Media's digital out-of-home advertising network had approximately 131,000 LCD displays in its LCD display network and approximately 261,000 advertising in-elevator poster and digital frames, installed in over 90 cities throughout China. For more information about Focus Media, please visit our website at http://ir.focusmedia.cn .



　　　　　　　　　　　　 Focus Media Holding Limited
　　　　　　 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
　　　　　　　　　　　　 (U.S. Dollars in Thousands)

　　　　　　　　　　　　　　　　　　　　　　　　2009-12-31　　　　2008-12-31
　　ASSETS
　　Current assets
　　Cash and cash equivalents　　　　　　　　　　  568,159　　　　   142,434
　　Held-to-maturity investment　　　　　　　　　　 29,290　　　　　　　　--
　　Accounts receivable, net　　　　　　　　　　   172,752　　　　   135,270
　　Prepaid expenses and other current
　　 assets　　　　　　　　　　　　　　　　　　　　 24,506　　　　　　15,117
　　Deposit paid for acquisition of
　　 subsidiaries　　　　　　　　　　　　　　　　　　4,860　　　　　　29,676
　　Rental deposits　　　　　　　　　　　　　　　　 29,640　　　　　　10,090
　　Other current assets　　　　　　　　　　　　　　 4,579　　　　　　 7,938
　　Assets held-for-sale, current　　　　　　　　　　   --　　　　   467,046
　　Total current assets　　　　　　　　　　　　   833,786　　　　   807,571
　　Rental deposits, non-current　　　　　　　　　　 1,570　　　　　　   133
　　Equipment, net　　　　　　　　　　　　　　　　  77,661　　　　　　 6,292
　　Acquired intangible assets, net　　　　　　　　 51,777　　　　　　77,713
　　Goodwill　　　　　　　　　　　　　　　　　　   410,369　　　　　　30,700
　　Other long term assets　　　　　　　　　　　　  18,279　　　　　　10,736
　　Assets held-for-sale, non-current　　　　　　　　   --　　　　   599,149
　　Total assets　　　　　　　　　　　　　　　　 1,393,442　　　　 1,532,294

　　LIABILITIES AND SHAREHOLDERS' EQUITY
　　Current liabilities
　　 Accounts payable　　　　　　　　　　　　　　   53,340　　　　　　67,905
　　 Accrued expenses and other current
　　  liabilities　　　　　　　　　　　　　　　　  101,870　　　　　　61,911
　　 Income taxes payable　　　　　　　　　　　　   27,017　　　　　　12,622
　　 Amount due to related parties　　　　　　　　   2,231　　　　　　15,687
　　Liabilities held-for-sale, current　　　　　　　　  --　　　　   160,739
　　Deferred tax liabilities　　　　　　　　　　　　12,077　　　　　　　　--
　　Total current liabilities　　　　　　　　　　  196,535　　　　   318,864
　　Liabilities held-for-sale, non
　　 current　　　　　　　　　　　　　　　　　　　　　　--　　　　　　 1,959
　　Deferred tax liabilities　　　　　　　　　　　　 5,435　　　　　　11,581
　　Total liabilities　　　　　　　　　　　　　　  201,970　　　　   332,404

　　Shareholders' equity
　　 Ordinary shares　　　　　　　　　　　　　　　　　　36　　　　　　　　32
　　 Additional paid in capital　　　　　　　　  1,868,172　　　　 1,659,833
　　 Accumulated deficit　　　　　　　　　　　　  (742,731)　　　　 (533,969)
　　 Accumulated other comprehensive
　　  income　　　　　　　　　　　　　　　　　　　　64,167　　　　　　71,888
　　Total shareholders' equity　　　　　　　　   1,189,644　　　　 1,197,784
　　 Noncontrolling interests　　　　　　　　　　　　1,828　　　　　　 2,106
　　 Total equity　　　　　　　　　　　　　　　　1,191,472　　　　 1,199,890
　　Total liabilities and equity　　　　　　　　 1,393,442　　　　 1,532,294




　　　　　　　　　　　　  Focus Media Holding Limited
　　　　　　　　  UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
　　　　　　(U.S. Dollar in thousands, except Earning per ADS and ADS data)

　　　　　　　　　　　　　　　　　　　　　　　　 Three months ended
　　　　　　　　　　　　　　　　　　　　 2009-12-31   2009-09-30   2008-12-31
　　Revenues
　　LCD display network　　　　　　　　　　  70,660　　   60,509　　   65,908
　　In-store network　　　　　　　　　　　　  8,173　　　　8,450　　   10,503
　　Poster Frame network　　　　　　　　　　 29,310　　   24,155　　   43,021
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 12,866　　   12,802　　   22,380
　　Internet advertising　　　　　　　　　　 34,863　　   29,437　　   28,311
　　Total gross revenues　　　　　　　　　　155,872　　  135,353　　  170,123
　　Less: Sales taxes　　　　　　　　　　　　11,524　　　　8,912　　   13,745
　　Total net revenue (note)　　　　　　　　144,348　　  126,441　　  156,378

　　Cost of revenues
　　LCD display network　　　　　　　　　　  14,623　　   38,830　　   32,036
　　In-store network　　　　　　　　　　　　  2,388　　   11,490　　   12,927
　　Poster Frame network　　　　　　　　　　 17,649　　   52,550　　   17,655
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 10,550　　　　9,486　　   15,307
　　Internet advertising　　　　　　　　　　 27,667　　   31,135　　   22,239
　　Total cost of revenues　　　　　　　　   72,877　　  143,491　　  100,164
　　Gross profit (loss)　　　　　　　　　　  71,471　　  (17,050)　　  56,214

　　Operating expenses
　　General and administrative　　　　　　   45,226　　   19,690　　   30,013
　　Selling and marketing　　　　　　　　　　28,416　　   32,948　　   27,595
　　Impairment loss　　　　　　　　　　　　  14,027　　   37,232　　  596,069
　　Other operating expenses (income),
　　 net　　　　　　　　　　　　　　　　　　 (1,411)　　  15,364　　  190,718
　　Total operating expenses　　　　　　　　 86,258　　  105,234　　  844,395

　　Operating loss　　　　　　　　　　　　  (14,787)　　(122,284)　　(788,181)
　　Interest income　　　　　　　　　　　　   1,382　　　　1,012　　　　2,303
　　Loss from continuing operations
　　 before income taxes　　　　　　　　　　(13,405)　　(121,272)　　(785,878)
　　Provision for income taxes　　　　　　　　5,336　　   (4,833)　　   7,066
　　Net loss from continuing operations　　 (18,741)　　(116,439)　　(792,944)

　　Net loss from discontinued
　　 operations, net of tax　　　　　　　　 (33,434)　　  (8,201)　　 (11,792)
　　Net loss　　　　　　　　　　　　　　　　(52,175)　　(124,640)　　(804,736)
　　Less: Net income(loss) attributable
　　 to noncontrolling interests　　　　　　　　324　　　　2,958　　   (2,246)
　　Net loss attributable to Focus
　　 Media　　　　　　　　　　　　　　　　  (52,499)　　(127,598)　　(802,490)

　　Loss per ADS from continuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(0.14)　　   (0.90)　　   (6.17)
　　-diluted　　　　　　　　　　　　　　　　  (0.14)　　   (0.90)　　   (6.17)

　　Loss per ADS from discontinuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(0.25)　　   (0.06)　　   (0.09)
　　-diluted　　　　　　　　　　　　　　　　  (0.25)　　   (0.06)　　   (0.09)

　　Loss per ADS
　　-basic　　　　　　　　　　　　　　　　　　(0.39)　　   (0.99)　　   (6.24)
　　-diluted　　　　　　　　　　　　　　　　  (0.39)　　   (0.99)　　   (6.24)

　　Shares used in calculating basic
　　 loss per ADS　　　　　　　　　　   134,562,342  129,308,337  128,607,842
　　Shares used in calculating diluted
　　 loss per ADS　　　　　　　　　　   134,562,342  129,308,337  128,607,842


　　　　　　　　　　　　　　　　　　　　　　   Year ended
　　　　　　　　　　　　　　　　　　　　 2009-12-31   2008-12-31
　　Revenues
　　LCD display network　　　　　　　　　　 229,424　　  267,778
　　In-store network　　　　　　　　　　　　 33,538　　   67,038
　　Poster Frame network　　　　　　　　　　108,526　　  160,613
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 60,544　　   80,023
　　Internet advertising　　　　　　　　　　113,183　　  120,702
　　Total gross revenues　　　　　　　　　　545,215　　  696,154
　　Less: Sales taxes　　　　　　　　　　　　40,180　　   53,818
　　Total net revenue (note)　　　　　　　　505,035　　  642,336

　　Cost of revenues
　　LCD display network　　　　　　　　　　  75,757　　   79,589
　　In-store network　　　　　　　　　　　　 24,170　　   61,834
　　Poster Frame network　　　　　　　　　　 95,401　　   59,815
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 45,085　　   56,944
　　Internet advertising　　　　　　　　　　 98,721　　   89,052
　　Total cost of revenues　　　　　　　　  339,134　　  347,234
　　Gross profit (loss)　　　　　　　　　　 165,901　　  295,102

　　Operating expenses
　　General and administrative　　　　　　  116,216　　   90,194
　　Selling and marketing　　　　　　　　   107,184　　   95,400
　　Impairment loss　　　　　　　　　　　　  86,304　　  596,069
　　Other operating expenses (income),
　　 net　　　　　　　　　　　　　　　　　　 10,847　　  182,522
　　Total operating expenses　　　　　　　　320,551　　  964,185

　　Operating loss　　　　　　　　　　　　 (154,650)　　(669,083)
　　Interest income　　　　　　　　　　　　   5,261　　　　7,528
　　Loss from continuing operations
　　 before income taxes　　　　　　　　   (149,389)　　(661,555)
　　Provision for income taxes　　　　　　　　9,335　　   26,785
　　Net loss from continuing operations　　(158,724)　　(688,340)

　　Net loss from discontinued
　　 operations, net of tax　　　　　　　　 (46,513)　　 (82,498)
　　Net loss　　　　　　　　　　　　　　   (205,237)　　(770,838)
　　Less: Net income(loss) attributable
　　 to noncontrolling interests　　　　　　  3,525　　　　 (150)
　　Net loss attributable to Focus
　　 Media　　　　　　　　　　　　　　　　 (208,762)　　(770,688)

　　Loss per ADS from continuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(1.22)　　   (5.34)
　　-diluted　　　　　　　　　　　　　　　　  (1.22)　　   (5.34)

　　Loss per ADS from discontinuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(0.36)　　   (0.64)
　　-diluted　　　　　　　　　　　　　　　　  (0.36)　　   (0.64)

　　Loss per ADS
　　-basic　　　　　　　　　　　　　　　　　　(1.61)　　   (5.98)
　　-diluted　　　　　　　　　　　　　　　　  (1.61)　　   (5.98)

　　Shares used in calculating basic
　　 loss per ADS　　　　　　　　　　   129,735,639  128,880,565
　　Shares used in calculating diluted
　　 loss per ADS　　　　　　　　　　   129,735,639  128,880,565


　　Note: Details of net revenues by segment are as follows (U.S. Dollars in
　　　　  thousands):

　　　　　　　　　　　　　　　　　　　　　　　　  Three months ended
　　　　　　　　　　　　　　　　　　　　  2009-12-31  2009-09-30  2008-12-31
　　Gross revenues
　　LCD display network　　　　　　　　　　   70,660　　  60,509　　  65,908
　　In-store network　　　　　　　　　　　　   8,173　　   8,450　　  10,503
　　Poster Frame network　　　　　　　　　　  29,310　　  24,155　　  43,021
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  12,866　　  12,802　　  22,380
　　Internet advertising　　　　　　　　　　  34,863　　  29,437　　  28,311
　　Total gross revenues　　　　　　　　　　 155,872　　 135,353　　 170,123
　　Less: Sales taxes
　　LCD display network　　　　　　　　　　　　6,539　　   4,502　　   6,655
　　In-store network　　　　　　　　　　　　　　 784　　　　 804　　　　 973
　　Poster Frame network　　　　　　　　　　   2,513　　   2,025　　   3,794
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　　　 270　　　　 315　　　　 734
　　Internet advertising　　　　　　　　　　   1,418　　   1,266　　   1,589
　　Total sales tax　　　　　　　　　　　　   11,524　　   8,912　　  13,745
　　Net revenues
　　LCD display network　　　　　　　　　　   64,121　　  56,007　　  59,253
　　In-store network　　　　　　　　　　　　   7,389　　   7,646　　   9,530
　　Poster Frame network　　　　　　　　　　  26,797　　  22,130　　  39,227
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  12,596　　  12,487　　  21,646
　　Internet advertising　　　　　　　　　　  33,445　　  28,171　　  26,722
　　Total net revenues　　　　　　　　　　   144,348　　 126,441　　 156,378


　　　　　　　　　　　　　　　　　　　　　　　　Year ended
　　　　　　　　　　　　　　　　　　　　  2009-12-31  2008-12-31
　　Gross revenues
　　LCD display network　　　　　　　　　　  229,424　　 267,778
　　In-store network　　　　　　　　　　　　  33,538　　  67,038
　　Poster Frame network　　　　　　　　　　 108,526　　 160,613
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  60,544　　  80,023
　　Internet advertising　　　　　　　　　　 113,183　　 120,702
　　Total gross revenues　　　　　　　　　　 545,215　　 696,154
　　Less: Sales taxes
　　LCD display network　　　　　　　　　　   20,625　　  24,652
　　In-store network　　　　　　　　　　　　   3,192　　   6,319
　　Poster Frame network　　　　　　　　　　   9,564　　  13,863
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   1,487　　   2,844
　　Internet advertising　　　　　　　　　　   5,312　　   6,140
　　Total sales tax　　　　　　　　　　　　   40,180　　  53,818
　　Net revenues
　　LCD display network　　　　　　　　　　  208,799　　 243,126
　　In-store network　　　　　　　　　　　　  30,346　　  60,719
　　Poster Frame network　　　　　　　　　　  98,962　　 146,750
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  59,057　　  77,179
　　Internet advertising　　　　　　　　　　 107,871　　 114,562
　　Total net revenues　　　　　　　　　　   505,035　　 642,336




　　　　　　　　　　　　　　 FOCUS MEDIA HOLDING LIMITED
　　　　　　　　UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS
　　　　　　　　　　　　　　 (U.S. Dollar in thousands)

　　　　　　　　　　　　　　　　　　   Three months ended　　  Year ended 
　　　　　　　　　　　　　　　　　　　　 2009-　　 2008-　　 2009-　　 2008-
　　　　　　　　　　　　　　　　　　　　 12-31　　 12-31　　 12-31　　 12-31
　　Operating activities:
　　Net loss　　　　　　　　　　　　　　(52,175) (804,736) (205,237) (770,838)
　　Adjustments to reconcile net loss
　　 to net cash provided by operating
　　 activities:
　　Bad debt provision　　　　　　　　　　5,140　　 8,597　　31,262　　15,767
　　Share-based compensation　　　　　　 35,064　　12,768　　62,528　　42,615
　　Depreciation and amortization　　　　 7,933　　 9,623　　35,450　　31,337
　　Amortization of acquired intangible
　　 assets　　　　　　　　　　　　　　   4,672　　10,611　　27,279　　40,516
　　Loss and impairment on disposal of
　　 equity interest of subsidiaries
　　 and certain other assets　　　　　　39,110   189,879　　64,931   282,407
　　Settlement of disputed liabilities   (2,067)　　   --　　(2,067)　　   --
　　Impairment charges for goodwill,
　　 acquired intangible assets and
　　 fixed assets　　　　　　　　　　　　14,027   634,420   153,369   619,602
　　Loss on disposal of fixed assets　　　　161　　   304　　 1,346　　   698
　　Net changes in current assets and
　　 current liabilities, net of
　　 effects of acquisitions　　　　　　 20,395　　22,102　　(8,138)  (93,663)
　　Net cash provided by operating
　　 activities　　　　　　　　　　　　  72,260　　83,568   160,723   168,441

　　Investing activities:
　　Purchase of equipment and other
　　 long term assets　　　　　　　　　　  (987)   (7,106)  (10,655)  (72,876)
　　Earn-out payment paid to acquire
　　 subsidiaries　　　　　　　　　　   (19,301)  (14,775)  (92,412) (133,348)
　　Investment in a joint venture　　　　　　--　　　　--　　　　--　　(2,970)
　　Acquisition of an intangible assets　　  --　　　　--　　　　--　　(1,767)
　　Deposits (paid)/refunded in
　　 connection with acquisition of
　　 subsidiaries　　　　　　　　　　　　   330　　　　--　　   330   (14,270)
　　Disposal of subsidiaries　　　　　　 (9,328)　　   --   (27,316)  (11,694)
　　Sales of equity securities and bank
　　 notes　　　　　　　　　　　　　　　　   --　　 7,365　　   865   187,243
　　Purchase of equity securities and
　　 bank notes　　　　　　　　　　　　　　  --　　　　--   (29,257)  (96,113)
　　Proceeds received from disposal of
　　 fixed assets　　　　　　　　　　　　　　--　　　　--　　   196　　　　--
　　Net cash used in investing
　　 activities　　　　　　　　　　　　 (29,286)  (14,516) (158,249) (145,795)

　　Financing activities:
　　Proceeds from short-term bank loans　　  --　　　　--　　　　--　　   370
　　Repayment of short term bank loans　　   --　　　　--　　　　--　　  (370)
　　Repayment of short term other loans　　  --　　　　--　　　　--   (30,041)
　　Capital injection from minority
　　 shareholders　　　　　　　　　　　　　　--　　　　--　　　　--　　   214
　　Proceeds from issuance of ordinary
　　 shares, net of issuance costs　　  142,437　　 1,535   144,499　　10,711
　　Repurchase of ordinary shares　　　　　　--   (17,502)　　   --   (47,500)
　　Net cash provided by/(used in)
　　 financing activities　　　　　　   142,437   (15,967)  144,499   (66,616)
　　Effect of exchange rate changes　　　　(359)   (3,342)   (1,729)   16,469

　　Net increase (decrease) in cash and
　　 cash equivalents　　　　　　　　   185,052　　49,743   145,244   (27,501)
　　Cash and cash equivalents,
　　 beginning of period / year　　　　 383,107   373,172   422,915   450,416

　　Cash and cash equivalents, end of
　　 period / year　　　　　　　　　　  568,159   422,915   568,159   422,915

　　Supplemental disclosure of cash
　　 flow information:
　　Income taxes paid　　　　　　　　　　 2,787　　 8,728　　12,965　　23,712

　　Supplemental disclosure of non-cash
　　 investing activity:
　　Acquisition of subsidiaries:
　　 Accounts payable　　　　　　　　　　20,326　　60,501　　20,326　　60,501


]]></description>
		<detail><![CDATA[
　　SHANGHAI, March 17 /PRNewswire-Asia/ -- Focus Media Holding Limited (Nasdaq: FMCN), China's largest digital media group, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2009.

　　Basis of Presentation

　　The results of the internet business have been restated in this earning release to reflect the disposal of certain subsidiaries which have been classified as discontinued operations for all periods presented.

　　Highlights for Fourth Quarter 2009:
　　-- Total net revenue for fourth quarter 2009 was $144.3 million, of which 
　　   the aggregate net revenue for the LCD display network, in-store network 
　　   and poster frame network was $98.3 million, surpassing the Company's 
　　   previous guidance of $92 million and the aggregate net revenue for the 
　　   movie theatre and outdoor traditional billboard network and Internet 
　　   advertising services was $46.0 million, surpassing the Company's 
　　   previous guidance of $39 million.
　　-- GAAP net loss attributable to Focus Media was $52.5 million or a loss 
　　   of $0.39 per fully diluted ADS, compared to net loss attributable to 
　　   Focus Media of $127.6 million for the third quarter of 2009 or a loss 
　　   of $0.99 per fully diluted ADS and net loss attributable to Focus Media 
　　   of $802.5 million for the fourth quarter of 2008 or a loss of $6.24 per 
　　   fully diluted ADS.
　　-- Non-GAAP net income attributable to Focus Media for the fourth quarter 
　　   of 2009 was $34.7 million or an income of $0.26 per ADS, compared to 
　　   non-GAAP net income attributable to Focus Media of $7.9 million for the 
　　   third quarter of 2009 or an income of $0.06 per ADS and non-GAAP net 
　　   income of $50.0 million for the fourth quarter of 2008 or an income of 
　　   $0.39 per ADS.
　　-- Net cashflow from operations in the fourth quarter of 2009 was 
　　   $72.3 million, an increase of 96% from $ 36.8 million in the third 
　　   quarter of 2009.

　　Highlights for Full Year 2009:
　　-- Total net revenue for full year 2009 was $505.0 million, declining 21% 
　　   from $642.3 million for full year 2008, substantially due to 
　　   unfavorable macro-economic condition and strategic reorganization 
　　   related to several lines of our businesses. The aggregate net revenue 
　　   for the LCD display network, in-store network and poster frame network 
　　   for full year 2009 was $338.1 million, declining 25% from 
　　   $450.6 million for full year 2008. The aggregate net revenue for the 
　　   movie theatre and outdoor traditional billboard network and Internet 
　　   advertising services was $166.9 million, declining 13% from 
　　   $191.7 million for full year 2008.
　　-- GAAP net loss attributable to Focus Media was $208.8 million for full 
　　   year 2009 or a loss of $1.61 per fully diluted ADS, compared to net 
　　   loss attributable to Focus Media of $770.7 million for full year 2008, 
　　   or a loss of $5.98 per fully diluted ADS.
　　-- Non-GAAP net income attributable to Focus Media for full year 2009 was 
　　   $89.4 million or an income of $0.69 per ADS, compared to non-GAAP net 
　　   income attributable to Focus Media of $221.9 million for full year 2008 
　　   or an income of $1.72 per ADS.

　　Highlights for Balance Sheet and Cash Flow Results of Fourth Quarter and Full Year 2009:
　　-- Cash and cash equivalents was $568.2 million as of December 31, 2009, 
　　   including the subscription price of $142.4 million received from 
　　   Chairman and CEO Mr. Jason Jiang for purchase of 75,000,000 newly 
　　   issued shares in our Company, and representing an increase of 48% from 
　　   $383.1 million as of September 30, 2009.
　　-- Net accounts receivable for the LCD display network, in-store network 
　　   and poster frame network was $96.1 million as of December 31, 2009, a 
　　   decline of 16% from $114.3 million as of September 30, 2009. Days sales 
　　   outstanding on a rolling basis was 88 days in the fourth quarter of 
　　   2009 versus 118 days for the third quarter of 2009.
　　-- Net accounts receivable for the movie theatre and outdoor traditional 
　　   billboard network and Internet advertising services was $76.6 million 
　　   as of December 31, 2009.
　　-- Net cashflow from operations in full year 2009 was $160.7 million, as 
　　   compared to $168.4 million in full year 2008.
　　-- Capital expenditures were $1.0 million and $10.7 million for the fourth 
　　   quarter of 2009 and full year 2009 respectively.
　　-- Earn-out payments related to historical acquisitions paid in the fourth 
　　   quarter of 2009 were $19.3 million, of which $10.7 million was 
　　   attributable to the poster frame network and LCD display network and 
　　   $8.6 million was attributable to the traditional outdoor billboard and 
　　   internet businesses. For full year 2009, total earn-out payments 
　　   related to historical acquisitions paid were $92.4 million, of which 
　　   $62.3 million was attributable to the poster frame network and LCD 
　　   display network and $30.1 million was attributable to traditional 
　　   outdoor billboard and internet businesses.


　　Jason Jiang, Chairman and CEO of Focus Media said, "After going through a year of restructuring, Focus Media has substantially resolved its past problems and re-entered on to a path of sustainable growth. At the same time, the Chinese advertising market recovery has presented us with very attractive development opportunities. We believe we are well positioned to achieve meaningful cash flow and earnings growth in 2010. Starting in 2010, Focus Media will focus on dedicating our resources to developing networks in lower tier cities for our LCD, Poster frame as well as in-store networks. We believe the investment we are making in lower tier cities will help to lay the foundation of growth for Focus Media over the next three to five years. Separately, we will offer incentives to motivate internet and outdoor billboard management so as to promote sustainable long term development of the respective business segments."

　　Kit Low, CFO added, "Our fourth quarter 2009 results demonstrate the robust execution capability of the Focus Media team as well as the significant positive operating leverage of the Focus Media business model. In the fourth quarter 2009 the Company generated a free cash flow of $43.0 million on $34.7 million of non-GAAP net income with operating cashflow of $72.3 million, versus an investing cashflow of $29.3 million. We expect this trend of positive cashflow generation to continue as the Company leverages the 2010 uptrend of the Chinese advertising market."

　　Fourth Quarter 2009 financial results

　　Advertising net revenue from the LCD display network was $64.1 million for the fourth quarter of 2009, an increase of 14% from $56.0 million for the third quarter of 2009 and an increase of 8% from $59.3 million for the fourth quarter of 2008.

　　Advertising net revenue from the poster frame network was $26.8 million for the fourth quarter of 2009, an increase of 21% from $22.1 million for the third quarter of 2009 but a decline of 32% from $39.2 million for the fourth quarter of 2008.

　　Advertising net revenue from the in-store network was $7.4 million for the fourth quarter of 2009, slightly decreasing from $7.6 million for the third quarter of 2009 and decreasing by 22% from $9.5 million for the fourth quarter of 2008.

　　As of December 31, 2009, the total installed base of LCD displays in our LCD display network was 131,006 nationwide, including 125,595 displays through our directly owned networks, and 5,411 displays through our regional distributors, as compared to 130,890 as of September 30, 2009. The total number of non-digital frames available for sale in our poster frame network was 225,104 as of December 31, 2009, as compared to 225,762 as of September 30, 2009. In addition, as of December 31, 2009, we had 35,972 digital frames installed in our poster frame network, as compared to 36,539 as of September 30, 2009. The total number of displays installed in our in-store network was 44,517 as of December 31, 2009, as compared to 45,195 as of September 30, 2009.

　　Advertising net revenue from the movie theater and traditional outdoor billboard network was $12.6 million for the fourth quarter of 2009, relatively constant compared to $12.5 million for the third quarter of 2009 and a 42% decrease compared to $21.6 million for the fourth quarter of 2008 due to restructuring in traditional outdoor billboard network in the third quarter of 2009.

　　Internet advertising service net revenue was $33.4 million in the fourth quarter of 2009, increased by 18% as compared to $28.2 million for the third quarter of 2009, and 25% as compared to $26.7 million for the fourth quarter of 2008.

　　Non-GAAP gross profit for the LCD display network for the fourth quarter of 2009 was $50.6 million, representing an increase of 50% from $33.7 million for the third quarter of 2009 and an increase of 15% from $44.0 million for the fourth quarter of 2008.

　　Non-GAAP gross profit for the poster frame network for the fourth quarter of 2009 was $10.8 million, representing a significant increase over $1.7 million for the third quarter of 2009 but a decrease of 55% from $23.8 million for the fourth quarter of 2008.

　　Non-GAAP gross profit for the in-store network for the fourth quarter of 2009 was $5.0 million, compared to non-GAAP gross loss of $3.3 million for the third quarter of 2009 primarily due to the Company's settling of a rental dispute in the fourth quarter and releasing the corresponding rental liabilities accrued in the previous periods and compared to non-GAAP gross profit of $0.5 million for the fourth quarter of 2008 as the Company managed to lower rental costs in the business.

　　Non-GAAP gross profit for the movie theater and traditional outdoor billboard networks for the fourth quarter of 2009 was $2.5 million, representing a 32% decline from $3.7 million for the third quarter of 2009 and a 66% decline from $7.3 million for the fourth quarter of 2008, mainly due to the restructuring in the traditional outdoor billboard network as one subsidiary was disposed in late third quarter of 2009.

　　Non-GAAP gross profit from our Internet advertising services for the fourth quarter of 2009 was $6.0 million, a slight increase from $5.6 million for the third quarter of 2009 and from $5.3 million for the fourth quarter of 2008.

　　Non-GAAP operating expense for the fourth quarter of 2009 was $33.9 million, increasing by 14% from $29.8 million for the third quarter of 2009 and 7% from $31.8 million for the fourth quarter of 2008.

　　Business Outlook for First Quarter 2010

　　The Company provides the following guidance with respect to the first quarter ending March 31, 2010:

　　Net revenues for LCD display networks, in-store networks and poster frame networks are expected to be in the range of $78-80 million, the mid-point of which would represent year-on-year growth of 23%. Net revenues for the movie theatre and traditional outdoor billboard and internet advertising services are expected to be in the range of $37-39 million. Company non-GAAP net income is expected to be in the range of $20-23 million.

　　Based on the existing business outlook, the Company expects earn-out payment remaining in 2010 to be no more than $40 million.

　　Announced Share Repurchase Program

　　On Feb 2, 2010, Focus Media announced that its board of directors has approved a share repurchase program up to $200 million. The Company expects to implement this share repurchase program over the course of the next 12 months post announcement, in a manner consistent with market conditions and the interest of the shareholders and in compliance with the Company's securities trading policy. Focus Media's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. Focus Media plans to fund repurchases made under this program from its available cash balance.

　　Management Buy-Out in Internet Division

　　Certain Allyes employees and management and directors and certain members of the Company's management and directors recently entered into a definitive agreement with the Company and Allyes in January 2010 to buy-out an aggregate 38% interest in Allyes from the Company. Pursuant to the terms of the agreements, the purchasing Allyes and Company management members paid an aggregate $13.3 million for a 38% interest of Allyes, when taking into account offshore and onshore transactions. The purchase price to management took into account various factors including the disposition of various smaller Internet divisions during the fourth quarter of 2009 and the results of an independent third-party valuation report, however the Company is currently assessing the accounting implications of the transaction. The transaction was approved by all independent directors on the board. This transaction was part of initiatives being taken by the Company to incentivize management to enhance the future business model of Allyes and thereby to seek long term sustainable growth for the company and investors.

　　USE OF NON-GAAP FINANCIAL MEASURES

　　In addition to Focus Media's consolidated financial results under GAAP, the Company also provides non-GAAP financial measures, including non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating profit (loss) and non-GAAP net income, all excluding share-based compensation expenses, amortization of acquired intangible assets, loss from disposal of previously acquired subsidiaries, impairment charges of certain assets, including acquired intangible assets, goodwill, impairment and termination charges related to ceasing expansion of digital poster frame networks and boat-based advertising platform, write-off of receivables from ex-shareholders of disposed business and one-off charges from expensing IPO expenditures as a result of termination of IPO process of Allyes. The Company believes that these non-GAAP financial measures provide investors with another method for assessing Focus Media's operating results in a manner that is focused on the performance of its ongoing operations. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP results with non-GAAP results in the attached financial information. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of Focus Media and when planning and forecasting future periods. The Company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliation between these financial measures.


　　　　　　　　　　　　 Focus Media Holding Ltd.
　　　　　　　　　　 Reconciliation of GAAP to non-GAAP
　　(U.S. Dollar in thousands, except percentages, share and per-share data)
　　　　　　　　　　　　　　　　(Unaudited)

　　　　　　　　　　　　　　　　　　   Three months ended December 31, 2009
　　　　　　　　　　　　　　　　　　　　   GAAP　　   (1)　　 (2)　　 (3)

　　Gross Profit
　　LCD display network　　　　　　　　　　49,498　　  285　　 839　　  --
　　Poster Frame network　　　　　　　　　　9,148　　   --   1,646　　  --
　　In-store network　　　　　　　　　　　　5,001　　   --　　  --　　  --
　　Internet advertising　　　　　　　　　　5,778　　   --　　 207　　  --
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　2,046　　   --　　 443　　  --
　　Total Gross Profit　　　　　　　　　　 71,471　　  285   3,135　　  --

　　Operating Expense　　　　　　　　　　  86,258  (34,779) (1,254)　　 --

　　Operating (loss) profit　　　　　　   (14,787)  35,064   4,389　　  --

　　Net income (loss) attributable to
　　 Focus Media
　　　　　　　　　　　　　　　　　　　　  (52,499)  35,064   4,672  31,103


　　　　　　　　　　　　　　　　　　　　　　  (4)　　  (5)　　 (6)  Non-
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　--　　   --　　  --  50,622
　　Poster Frame network　　　　　　　　　　   --　　   --　　  --  10,794
　　In-store network　　　　　　　　　　　　   --　　   --　　  --   5,001
　　Internet advertising　　　　　　　　　　   --　　   --　　  --   5,985
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   --　　   --　　  --   2,489
　　Total Gross Profit　　　　　　　　　　　　 --　　   --　　  --  74,891

　　Operating Expense　　　　　　　　　　 (14,027)  (4,351)  2,067  33,914

　　Operating (loss) profit　　　　　　　　14,027　　4,351  (2,067) 40,977

　　Net income (loss) attributable to
　　 Focus Media
　　　　　　　　　　　　　　　　　　　　   14,027　　4,351  (2,067) 34,651

　　(1). Share-based compensation, of which $ 14.6 million was attributable to 
　　　　 LCD display network, poster frame network and in-store network and 
　　　　 $20.5 million was attributable to cancellation of stock options in 
　　　　 internet business.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from impairment and disposal of previously acquired subsidiaries, 
　　　　 all attributable to internet business.
　　(4). Impairment charges of goodwill as a result of earn-out payments in 
　　　　 poster frame business.
　　(5). Write-off of receivables from ex-shareholders of disposed business.
　　(6). Settlement of disputed liabilities in previously disposed wireless 
　　　　 business.


　　　　　　　　　　　　　　　　　　Three months ended September 30, 2009
　　　　　　　　　　　　　　　　　　　　　　   GAAP　　   (1)　　 (2)
　　Gross Profit
　　LCD display network　　　　　　　　　　   17,177　　  306   3,607
　　Poster Frame network　　　　　　　　　　 (30,420)　　  --   5,131
　　In-store network　　　　　　　　　　　　  (3,844)　　  --　　  --
　　Internet advertising　　　　　　　　　　  (2,964)　　  --　　 393
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   3,001　　   --　　 663
　　Total Gross Profit　　　　　　　　　　   (17,050)　　 306   9,794

　　Operating Expense　　　　　　　　　　　　105,234   (8,467) (2,969)

　　Operating profit (loss)　　　　　　　　 (122,284)   8,773  12,763

　　Net income (loss) attributable to Focus
　　 Media　　　　　　　　　　　　　　　　  (127,598)   8,773  13,865


　　　　　　　　　　　　　　　　　　　　　　　　 (3)　　  (4)　　 (5)   Non-
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　   --　　3,169   9,462  33,721
　　Poster Frame network　　　　　　　　　　　　  --　　   --  26,983   1,694
　　In-store network　　　　　　　　　　　　　　  --　　   --　　 516  (3,328)
　　Internet advertising　　　　　　　　　　　　  --　　8,185　　  --   5,614
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　　　  --　　   --　　  --   3,664
　　Total Gross Profit　　　　　　　　　　　　　　--   11,354  36,961  41,365

　　Operating Expense　　　　　　　　　　　　(16,649) (45,456) (1,872) 29,821

　　Operating profit (loss)　　　　　　　　   16,649   56,810  38,833  11,544

　　Net income (loss) attributable to Focus
　　 Media　　　　　　　　　　　　　　　　　　25,944   57,300  29,593   7,877

　　(1). Share-based compensation.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries, of which loss 
　　　　 from disposal of subsidiaries was $3.7 million, loss from partial 
　　　　 disposal of equity interests in subsidiaries was $14.9 million and 
　　　　 loss from impairment of certain other assets was $7.3 million.
　　(4). Impairment charges of certain assets, including acquired intangible 
　　　　 assets and goodwill.
　　(5). Impairment and termination charges related to ceasing expansion of 
　　　　 digital poster frame networks and boat-based advertising platform.


　　　　　　　　　　　　　　　　　　　　 Three months ended December 31, 2008
　　　　　　　　　　　　　　　　　　　　　　 GAAP　　   (1)　　 (2)　　   (3)
　　Gross Profit 
　　LCD display network　　　　　　　　　　 27,217　　  314　　 865　　　　--
　　Poster Frame network　　　　　　　　　　21,572　　   --   2,257　　　　--
　　In-store network　　　　　　　　　　　　(3,397)　　  --　　 897　　  (248)
　　Internet advertising　　　　　　　　　　 4,483　　   --　　 814　　　　--
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 6,339　　   --　　 976　　　　--
　　`Total Gross Profit　　　　　　　　　　 56,214　　  314   5,809　　  (248)

　　Operating Expense　　　　　　　　　　  844,395  (12,330) (3,333) (193,822)

　　Operating profit (loss)　　　　　　   (788,181)  12,644   9,142   193,574

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　  (802,490)  12,644  10,611   208,238


　　　　　　　　　　　　　　　　　　　　　　  (4)　　  (5)　　 (6)   Non-GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　 --   15,574　　  --　　43,970
　　Poster Frame network　　　　　　　　　　　　--　　   --　　  --　　23,829
　　In-store network　　　　　　　　　　　　　　--　　3,290　　  --　　   542
　　Internet advertising　　　　　　　　　　　　--　　   --　　  --　　 5,297
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　　　--　　   --　　  --　　 7,315
　　`Total Gross Profit　　　　　　　　　　　　 --   18,864　　  --　　80,953

　　Operating Expense　　　　　　　　　　 (600,878)　　  --  (2,200)   31,832

　　Operating profit (loss)　　　　　　　　600,878   18,864   2,200　　49,121

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　   599,965   18,864   2,200　　50,032

　　(1). Share-based compensation.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries. 
　　(4). Impairment charges of certain assets, including acquired intangible 
　　　　 assets and goodwill.
　　(5). Impairment charges of fixed assets.
　　(6). Write-off of receivables from ex-shareholders of disposed business.



　　　　　　　　　　　　　　　　　　　　　　　　　　Twelve months ended
　　　　　　　　　　　　　　　　　　　　　　　　　　December 31, 2009
　　　　　　　　　　　　　　　　　　 GAAP　　  (1)　　 (2)　　  (3)　　  (4)
　　Gross Profit
　　LCD display network　　　　　　133,042　　1,504   4,446　　   --　　3,168
　　Poster Frame network　　　　　　 3,561　　   --   6,778　　   --　　   --
　　In-store network　　　　　　　　 6,176　　   --　　  15　　   --　　   --
　　Internet advertising　　　　　　 9,150　　   --   2,239　　   --　　8,746
　　Movie Theater &amp; Outdoor
　　 Billboard network　　　　　　  13,972　　   --   2,945　　   --　　   --
　　Total Gross Profit　　　　　　 165,901　　1,504  16,423　　   --   11,914

　　Operating Expense　　　　　　  320,551  (61,153) (6,563) (17,861) (94,775)

　　Operating profit (loss)　　   (154,650)  62,657  22,986   17,861  106,689

　　Net income (loss)
　　 attributable to Focus Media  (208,762)  62,657  27,279   58,259  113,046


　　　　　　　　　　　　　　　　　　  (5)　　  (6)　　 (7)　　 (8)   Non-GAAP

　　Gross Profit
　　LCD display network　　　　　　  9,462　　   --　　  --　　   --  151,622
　　Poster Frame network　　　　　　26,983　　   --　　  --　　   --   37,322
　　In-store network　　　　　　　　   516　　   --　　  --　　   --　　6,707
　　Internet advertising　　　　　　　　--　　   --　　  --　　   --   20,135
　　Movie Theater &amp; Outdoor
　　 Billboard network　　　　　　　　  --　　   --　　  --　　   --   16,917
　　Total Gross Profit　　　　　　  36,961　　   --　　  --　　   --  232,703

　　Operating Expense　　　　　　   (1,872)  (6,879) (2,466)   2,067  131,049

　　Operating profit (loss)　　　　 38,833　　6,879   2,466   (2,067) 101,654

　　Net income (loss)
　　 attributable to Focus Media　　29,593　　6,879   2,466   (2,067)  89,350


　　(1). Share-based compensation, of which $34.7 million was attributable to 
　　　　 LCD display network, poster frame network and in-store network and 
　　　　 $28.0 million was attributable to internet division.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries.
　　(4). Impairment charges of certain assets, including acquired intangible
　　　　 assets and goodwill.
　　(5). Impairment charges of fixed assets.
　　(6). Write-off of receivables from ex-shareholders of disposed business.
　　(7). One-off charges from expensing IPO expenditures as a result of 
　　　　 termination of IPO process of Allyes.
　　(8). Settlement of disputed liabilities in previously disposed wireless 
　　　　 business


　　　　　　　　　　　　　　　　　　　　Twelve months ended December 31, 2008
　　　　　　　　　　　　　　　　　　　　   GAAP　　   (1)　　  (2)　　   (3)
　　Gross Profit
　　LCD display network　　　　　　　　   163,537　　1,476　　3,711　　　　--
　　Poster Frame network　　　　　　　　   86,935　　   --　　9,571　　　　--
　　In-store network　　　　　　　　　　   (1,115)　　  --　　3,533　　  (248)
　　Internet advertising　　　　　　　　   25,510　　   --　　3,482　　　　--
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　   20,235　　   --　　3,845　　　　--
　　Total Gross Profit　　　　　　　　　　295,102　　1,476   24,142　　  (248)

　　Operating Expense　　　　　　　　　　 964,185  (41,023) (11,053) (193,822)

　　Operating profit (loss)　　　　　　  (669,083)  42,499   35,195   193,574

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　 (770,688)  42,499   40,980   288,121


　　　　　　　　　　　　　　　　　　　　　　 (4)　　  (5)　　  (6)   Non-GAAP
　　Gross Profit
　　LCD display network　　　　　　　　　　　　--   15,574　　   --   184,298
　　Poster Frame network　　　　　　　　　　   --　　   --　　   --　　96,506
　　In-store network　　　　　　　　　　　　   --　　3,290　　   --　　 5,460
　　Internet advertising　　　　　　　　　　   --　　   --　　   --　　28,992
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   --　　   --　　   --　　24,080
　　Total Gross Profit　　　　　　　　　　　　 --   18,864　　   --   339,336

　　Operating Expense　　　　　　　　　　(600,878)　　  --   (2,200)  115,209

　　Operating profit (loss)　　　　　　   600,878   18,864　　2,200   224,127

　　Net income (loss) attributable to
　　 Focus Media　　　　　　　　　　　　  599,965   18,864　　2,200   221,941

　　(1). Share-based compensation.
　　(2). Amortization of acquired intangible assets.
　　(3). Loss from disposal of previously acquired subsidiaries. 
　　(4). Impairment charges of certain assets, including acquired intangible 
　　　　 assets and goodwill.
　　(5). Impairment charges of fixed assets.
　　(6). Write-off of receivables from ex-shareholders of disposed business.


　　CONFERENCE CALL

　　The Company will host a conference call to discuss the fourth quarter and full year 2009 results at 9:00 p.m. U.S. Eastern Time on March 16, 2010 (6:00 p.m. U.S. Pacific Time on March 16, 2010 and 9:00 a.m. Beijing/Hong Kong Time on March 17, 2010). The dial-in details for the live conference call are set forth below: U.S. Toll Free Number +1.800.510.0219, Hong Kong dial-in number +852.3002.1672, International dial-in number +1.617.614.3451; Pass code: 27499071.

　　A replay of the call will be available from March 16, 2010 12:00 pm until March 24, 2010 (US Eastern Time). The dial-in details for the replay are set forth below: U.S. Toll Free Number +1-888-286-8010, International dial-in number +1-617-801-6888; Pass code 19117078. Additionally, a live and archived web cast of this call will be available on the Focus Media web site at http://ir.focusmedia.cn .

　　SAFE HARBOR: FORWARD-LOOKING STATEMENTS

　　This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Focus Media may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Focus Media's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in Focus Media's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3 and 20-F, in each case as amended. Focus Media does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

　　This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

　　ABOUT FOCUS MEDIA HOLDING LIMITED

　　Focus Media Holding Limited (Nasdaq: FMCN) is China's leading multi- platform digital media company, operating the largest out-of-home advertising network in China using audiovisual digital displays, based on the number of locations and number of flat-panel television displays in our network. Through Focus Media's multi-platform digital advertising network, the company reaches urban consumers at strategic locations and point-of-interests over a number of media formats, including audiovisual television displays in buildings and stores, advertising poster frames and other new and innovative media, such as outdoor light-emitting diode or LED digital billboard and Internet advertising platforms. As of December 31, 2009, Focus Media's digital out-of-home advertising network had approximately 131,000 LCD displays in its LCD display network and approximately 261,000 advertising in-elevator poster and digital frames, installed in over 90 cities throughout China. For more information about Focus Media, please visit our website at http://ir.focusmedia.cn .



　　　　　　　　　　　　 Focus Media Holding Limited
　　　　　　 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
　　　　　　　　　　　　 (U.S. Dollars in Thousands)

　　　　　　　　　　　　　　　　　　　　　　　　2009-12-31　　　　2008-12-31
　　ASSETS
　　Current assets
　　Cash and cash equivalents　　　　　　　　　　  568,159　　　　   142,434
　　Held-to-maturity investment　　　　　　　　　　 29,290　　　　　　　　--
　　Accounts receivable, net　　　　　　　　　　   172,752　　　　   135,270
　　Prepaid expenses and other current
　　 assets　　　　　　　　　　　　　　　　　　　　 24,506　　　　　　15,117
　　Deposit paid for acquisition of
　　 subsidiaries　　　　　　　　　　　　　　　　　　4,860　　　　　　29,676
　　Rental deposits　　　　　　　　　　　　　　　　 29,640　　　　　　10,090
　　Other current assets　　　　　　　　　　　　　　 4,579　　　　　　 7,938
　　Assets held-for-sale, current　　　　　　　　　　   --　　　　   467,046
　　Total current assets　　　　　　　　　　　　   833,786　　　　   807,571
　　Rental deposits, non-current　　　　　　　　　　 1,570　　　　　　   133
　　Equipment, net　　　　　　　　　　　　　　　　  77,661　　　　　　 6,292
　　Acquired intangible assets, net　　　　　　　　 51,777　　　　　　77,713
　　Goodwill　　　　　　　　　　　　　　　　　　   410,369　　　　　　30,700
　　Other long term assets　　　　　　　　　　　　  18,279　　　　　　10,736
　　Assets held-for-sale, non-current　　　　　　　　   --　　　　   599,149
　　Total assets　　　　　　　　　　　　　　　　 1,393,442　　　　 1,532,294

　　LIABILITIES AND SHAREHOLDERS' EQUITY
　　Current liabilities
　　 Accounts payable　　　　　　　　　　　　　　   53,340　　　　　　67,905
　　 Accrued expenses and other current
　　  liabilities　　　　　　　　　　　　　　　　  101,870　　　　　　61,911
　　 Income taxes payable　　　　　　　　　　　　   27,017　　　　　　12,622
　　 Amount due to related parties　　　　　　　　   2,231　　　　　　15,687
　　Liabilities held-for-sale, current　　　　　　　　  --　　　　   160,739
　　Deferred tax liabilities　　　　　　　　　　　　12,077　　　　　　　　--
　　Total current liabilities　　　　　　　　　　  196,535　　　　   318,864
　　Liabilities held-for-sale, non
　　 current　　　　　　　　　　　　　　　　　　　　　　--　　　　　　 1,959
　　Deferred tax liabilities　　　　　　　　　　　　 5,435　　　　　　11,581
　　Total liabilities　　　　　　　　　　　　　　  201,970　　　　   332,404

　　Shareholders' equity
　　 Ordinary shares　　　　　　　　　　　　　　　　　　36　　　　　　　　32
　　 Additional paid in capital　　　　　　　　  1,868,172　　　　 1,659,833
　　 Accumulated deficit　　　　　　　　　　　　  (742,731)　　　　 (533,969)
　　 Accumulated other comprehensive
　　  income　　　　　　　　　　　　　　　　　　　　64,167　　　　　　71,888
　　Total shareholders' equity　　　　　　　　   1,189,644　　　　 1,197,784
　　 Noncontrolling interests　　　　　　　　　　　　1,828　　　　　　 2,106
　　 Total equity　　　　　　　　　　　　　　　　1,191,472　　　　 1,199,890
　　Total liabilities and equity　　　　　　　　 1,393,442　　　　 1,532,294




　　　　　　　　　　　　  Focus Media Holding Limited
　　　　　　　　  UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
　　　　　　(U.S. Dollar in thousands, except Earning per ADS and ADS data)

　　　　　　　　　　　　　　　　　　　　　　　　 Three months ended
　　　　　　　　　　　　　　　　　　　　 2009-12-31   2009-09-30   2008-12-31
　　Revenues
　　LCD display network　　　　　　　　　　  70,660　　   60,509　　   65,908
　　In-store network　　　　　　　　　　　　  8,173　　　　8,450　　   10,503
　　Poster Frame network　　　　　　　　　　 29,310　　   24,155　　   43,021
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 12,866　　   12,802　　   22,380
　　Internet advertising　　　　　　　　　　 34,863　　   29,437　　   28,311
　　Total gross revenues　　　　　　　　　　155,872　　  135,353　　  170,123
　　Less: Sales taxes　　　　　　　　　　　　11,524　　　　8,912　　   13,745
　　Total net revenue (note)　　　　　　　　144,348　　  126,441　　  156,378

　　Cost of revenues
　　LCD display network　　　　　　　　　　  14,623　　   38,830　　   32,036
　　In-store network　　　　　　　　　　　　  2,388　　   11,490　　   12,927
　　Poster Frame network　　　　　　　　　　 17,649　　   52,550　　   17,655
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 10,550　　　　9,486　　   15,307
　　Internet advertising　　　　　　　　　　 27,667　　   31,135　　   22,239
　　Total cost of revenues　　　　　　　　   72,877　　  143,491　　  100,164
　　Gross profit (loss)　　　　　　　　　　  71,471　　  (17,050)　　  56,214

　　Operating expenses
　　General and administrative　　　　　　   45,226　　   19,690　　   30,013
　　Selling and marketing　　　　　　　　　　28,416　　   32,948　　   27,595
　　Impairment loss　　　　　　　　　　　　  14,027　　   37,232　　  596,069
　　Other operating expenses (income),
　　 net　　　　　　　　　　　　　　　　　　 (1,411)　　  15,364　　  190,718
　　Total operating expenses　　　　　　　　 86,258　　  105,234　　  844,395

　　Operating loss　　　　　　　　　　　　  (14,787)　　(122,284)　　(788,181)
　　Interest income　　　　　　　　　　　　   1,382　　　　1,012　　　　2,303
　　Loss from continuing operations
　　 before income taxes　　　　　　　　　　(13,405)　　(121,272)　　(785,878)
　　Provision for income taxes　　　　　　　　5,336　　   (4,833)　　   7,066
　　Net loss from continuing operations　　 (18,741)　　(116,439)　　(792,944)

　　Net loss from discontinued
　　 operations, net of tax　　　　　　　　 (33,434)　　  (8,201)　　 (11,792)
　　Net loss　　　　　　　　　　　　　　　　(52,175)　　(124,640)　　(804,736)
　　Less: Net income(loss) attributable
　　 to noncontrolling interests　　　　　　　　324　　　　2,958　　   (2,246)
　　Net loss attributable to Focus
　　 Media　　　　　　　　　　　　　　　　  (52,499)　　(127,598)　　(802,490)

　　Loss per ADS from continuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(0.14)　　   (0.90)　　   (6.17)
　　-diluted　　　　　　　　　　　　　　　　  (0.14)　　   (0.90)　　   (6.17)

　　Loss per ADS from discontinuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(0.25)　　   (0.06)　　   (0.09)
　　-diluted　　　　　　　　　　　　　　　　  (0.25)　　   (0.06)　　   (0.09)

　　Loss per ADS
　　-basic　　　　　　　　　　　　　　　　　　(0.39)　　   (0.99)　　   (6.24)
　　-diluted　　　　　　　　　　　　　　　　  (0.39)　　   (0.99)　　   (6.24)

　　Shares used in calculating basic
　　 loss per ADS　　　　　　　　　　   134,562,342  129,308,337  128,607,842
　　Shares used in calculating diluted
　　 loss per ADS　　　　　　　　　　   134,562,342  129,308,337  128,607,842


　　　　　　　　　　　　　　　　　　　　　　   Year ended
　　　　　　　　　　　　　　　　　　　　 2009-12-31   2008-12-31
　　Revenues
　　LCD display network　　　　　　　　　　 229,424　　  267,778
　　In-store network　　　　　　　　　　　　 33,538　　   67,038
　　Poster Frame network　　　　　　　　　　108,526　　  160,613
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 60,544　　   80,023
　　Internet advertising　　　　　　　　　　113,183　　  120,702
　　Total gross revenues　　　　　　　　　　545,215　　  696,154
　　Less: Sales taxes　　　　　　　　　　　　40,180　　   53,818
　　Total net revenue (note)　　　　　　　　505,035　　  642,336

　　Cost of revenues
　　LCD display network　　　　　　　　　　  75,757　　   79,589
　　In-store network　　　　　　　　　　　　 24,170　　   61,834
　　Poster Frame network　　　　　　　　　　 95,401　　   59,815
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　 45,085　　   56,944
　　Internet advertising　　　　　　　　　　 98,721　　   89,052
　　Total cost of revenues　　　　　　　　  339,134　　  347,234
　　Gross profit (loss)　　　　　　　　　　 165,901　　  295,102

　　Operating expenses
　　General and administrative　　　　　　  116,216　　   90,194
　　Selling and marketing　　　　　　　　   107,184　　   95,400
　　Impairment loss　　　　　　　　　　　　  86,304　　  596,069
　　Other operating expenses (income),
　　 net　　　　　　　　　　　　　　　　　　 10,847　　  182,522
　　Total operating expenses　　　　　　　　320,551　　  964,185

　　Operating loss　　　　　　　　　　　　 (154,650)　　(669,083)
　　Interest income　　　　　　　　　　　　   5,261　　　　7,528
　　Loss from continuing operations
　　 before income taxes　　　　　　　　   (149,389)　　(661,555)
　　Provision for income taxes　　　　　　　　9,335　　   26,785
　　Net loss from continuing operations　　(158,724)　　(688,340)

　　Net loss from discontinued
　　 operations, net of tax　　　　　　　　 (46,513)　　 (82,498)
　　Net loss　　　　　　　　　　　　　　   (205,237)　　(770,838)
　　Less: Net income(loss) attributable
　　 to noncontrolling interests　　　　　　  3,525　　　　 (150)
　　Net loss attributable to Focus
　　 Media　　　　　　　　　　　　　　　　 (208,762)　　(770,688)

　　Loss per ADS from continuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(1.22)　　   (5.34)
　　-diluted　　　　　　　　　　　　　　　　  (1.22)　　   (5.34)

　　Loss per ADS from discontinuing
　　 operations
　　-basic　　　　　　　　　　　　　　　　　　(0.36)　　   (0.64)
　　-diluted　　　　　　　　　　　　　　　　  (0.36)　　   (0.64)

　　Loss per ADS
　　-basic　　　　　　　　　　　　　　　　　　(1.61)　　   (5.98)
　　-diluted　　　　　　　　　　　　　　　　  (1.61)　　   (5.98)

　　Shares used in calculating basic
　　 loss per ADS　　　　　　　　　　   129,735,639  128,880,565
　　Shares used in calculating diluted
　　 loss per ADS　　　　　　　　　　   129,735,639  128,880,565


　　Note: Details of net revenues by segment are as follows (U.S. Dollars in
　　　　  thousands):

　　　　　　　　　　　　　　　　　　　　　　　　  Three months ended
　　　　　　　　　　　　　　　　　　　　  2009-12-31  2009-09-30  2008-12-31
　　Gross revenues
　　LCD display network　　　　　　　　　　   70,660　　  60,509　　  65,908
　　In-store network　　　　　　　　　　　　   8,173　　   8,450　　  10,503
　　Poster Frame network　　　　　　　　　　  29,310　　  24,155　　  43,021
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  12,866　　  12,802　　  22,380
　　Internet advertising　　　　　　　　　　  34,863　　  29,437　　  28,311
　　Total gross revenues　　　　　　　　　　 155,872　　 135,353　　 170,123
　　Less: Sales taxes
　　LCD display network　　　　　　　　　　　　6,539　　   4,502　　   6,655
　　In-store network　　　　　　　　　　　　　　 784　　　　 804　　　　 973
　　Poster Frame network　　　　　　　　　　   2,513　　   2,025　　   3,794
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　　　 270　　　　 315　　　　 734
　　Internet advertising　　　　　　　　　　   1,418　　   1,266　　   1,589
　　Total sales tax　　　　　　　　　　　　   11,524　　   8,912　　  13,745
　　Net revenues
　　LCD display network　　　　　　　　　　   64,121　　  56,007　　  59,253
　　In-store network　　　　　　　　　　　　   7,389　　   7,646　　   9,530
　　Poster Frame network　　　　　　　　　　  26,797　　  22,130　　  39,227
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  12,596　　  12,487　　  21,646
　　Internet advertising　　　　　　　　　　  33,445　　  28,171　　  26,722
　　Total net revenues　　　　　　　　　　   144,348　　 126,441　　 156,378


　　　　　　　　　　　　　　　　　　　　　　　　Year ended
　　　　　　　　　　　　　　　　　　　　  2009-12-31  2008-12-31
　　Gross revenues
　　LCD display network　　　　　　　　　　  229,424　　 267,778
　　In-store network　　　　　　　　　　　　  33,538　　  67,038
　　Poster Frame network　　　　　　　　　　 108,526　　 160,613
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  60,544　　  80,023
　　Internet advertising　　　　　　　　　　 113,183　　 120,702
　　Total gross revenues　　　　　　　　　　 545,215　　 696,154
　　Less: Sales taxes
　　LCD display network　　　　　　　　　　   20,625　　  24,652
　　In-store network　　　　　　　　　　　　   3,192　　   6,319
　　Poster Frame network　　　　　　　　　　   9,564　　  13,863
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　   1,487　　   2,844
　　Internet advertising　　　　　　　　　　   5,312　　   6,140
　　Total sales tax　　　　　　　　　　　　   40,180　　  53,818
　　Net revenues
　　LCD display network　　　　　　　　　　  208,799　　 243,126
　　In-store network　　　　　　　　　　　　  30,346　　  60,719
　　Poster Frame network　　　　　　　　　　  98,962　　 146,750
　　Movie Theater &amp; Outdoor Billboard
　　 network　　　　　　　　　　　　　　　　  59,057　　  77,179
　　Internet advertising　　　　　　　　　　 107,871　　 114,562
　　Total net revenues　　　　　　　　　　   505,035　　 642,336




　　　　　　　　　　　　　　 FOCUS MEDIA HOLDING LIMITED
　　　　　　　　UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS
　　　　　　　　　　　　　　 (U.S. Dollar in thousands)

　　　　　　　　　　　　　　　　　　   Three months ended　　  Year ended 
　　　　　　　　　　　　　　　　　　　　 2009-　　 2008-　　 2009-　　 2008-
　　　　　　　　　　　　　　　　　　　　 12-31　　 12-31　　 12-31　　 12-31
　　Operating activities:
　　Net loss　　　　　　　　　　　　　　(52,175) (804,736) (205,237) (770,838)
　　Adjustments to reconcile net loss
　　 to net cash provided by operating
　　 activities:
　　Bad debt provision　　　　　　　　　　5,140　　 8,597　　31,262　　15,767
　　Share-based compensation　　　　　　 35,064　　12,768　　62,528　　42,615
　　Depreciation and amortization　　　　 7,933　　 9,623　　35,450　　31,337
　　Amortization of acquired intangible
　　 assets　　　　　　　　　　　　　　   4,672　　10,611　　27,279　　40,516
　　Loss and impairment on disposal of
　　 equity interest of subsidiaries
　　 and certain other assets　　　　　　39,110   189,879　　64,931   282,407
　　Settlement of disputed liabilities   (2,067)　　   --　　(2,067)　　   --
　　Impairment charges for goodwill,
　　 acquired intangible assets and
　　 fixed assets　　　　　　　　　　　　14,027   634,420   153,369   619,602
　　Loss on disposal of fixed assets　　　　161　　   304　　 1,346　　   698
　　Net changes in current assets and
　　 current liabilities, net of
　　 effects of acquisitions　　　　　　 20,395　　22,102　　(8,138)  (93,663)
　　Net cash provided by operating
　　 activities　　　　　　　　　　　　  72,260　　83,568   160,723   168,441

　　Investing activities:
　　Purchase of equipment and other
　　 long term assets　　　　　　　　　　  (987)   (7,106)  (10,655)  (72,876)
　　Earn-out payment paid to acquire
　　 subsidiaries　　　　　　　　　　   (19,301)  (14,775)  (92,412) (133,348)
　　Investment in a joint venture　　　　　　--　　　　--　　　　--　　(2,970)
　　Acquisition of an intangible assets　　  --　　　　--　　　　--　　(1,767)
　　Deposits (paid)/refunded in
　　 connection with acquisition of
　　 subsidiaries　　　　　　　　　　　　   330　　　　--　　   330   (14,270)
　　Disposal of subsidiaries　　　　　　 (9,328)　　   --   (27,316)  (11,694)
　　Sales of equity securities and bank
　　 notes　　　　　　　　　　　　　　　　   --　　 7,365　　   865   187,243
　　Purchase of equity securities and
　　 bank notes　　　　　　　　　　　　　　  --　　　　--   (29,257)  (96,113)
　　Proceeds received from disposal of
　　 fixed assets　　　　　　　　　　　　　　--　　　　--　　   196　　　　--
　　Net cash used in investing
　　 activities　　　　　　　　　　　　 (29,286)  (14,516) (158,249) (145,795)

　　Financing activities:
　　Proceeds from short-term bank loans　　  --　　　　--　　　　--　　   370
　　Repayment of short term bank loans　　   --　　　　--　　　　--　　  (370)
　　Repayment of short term other loans　　  --　　　　--　　　　--   (30,041)
　　Capital injection from minority
　　 shareholders　　　　　　　　　　　　　　--　　　　--　　　　--　　   214
　　Proceeds from issuance of ordinary
　　 shares, net of issuance costs　　  142,437　　 1,535   144,499　　10,711
　　Repurchase of ordinary shares　　　　　　--   (17,502)　　   --   (47,500)
　　Net cash provided by/(used in)
　　 financing activities　　　　　　   142,437   (15,967)  144,499   (66,616)
　　Effect of exchange rate changes　　　　(359)   (3,342)   (1,729)   16,469

　　Net increase (decrease) in cash and
　　 cash equivalents　　　　　　　　   185,052　　49,743   145,244   (27,501)
　　Cash and cash equivalents,
　　 beginning of period / year　　　　 383,107   373,172   422,915   450,416

　　Cash and cash equivalents, end of
　　 period / year　　　　　　　　　　  568,159   422,915   568,159   422,915

　　Supplemental disclosure of cash
　　 flow information:
　　Income taxes paid　　　　　　　　　　 2,787　　 8,728　　12,965　　23,712

　　Supplemental disclosure of non-cash
　　 investing activity:
　　Acquisition of subsidiaries:
　　 Accounts payable　　　　　　　　　　20,326　　60,501　　20,326　　60,501


]]></detail>
		<source><![CDATA[SOURCE  Focus Media Holding Limited]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100215811-1.html</link>
		<title>China Power Equipment Announced Appointment of Two Independent Directors</title>
		<author>PR Newswire Asia</author>
		
		<category>Energy/Natural Sources </category>
		
		<pubDate>Wed, 17 Mar 2010 04:30:00 +0800</pubDate>
		<guid>4028ee8c2766a90301276896888e001f</guid>
		<description><![CDATA[　　NEW YORK, March 17 /PRNewswire-Asia/ -- China Power Equipment, Inc. ("China Power Equipment", OTC Bulletin Board: CPQQ), the manufacturer of a new generation of energy saving electric transformer cores and transformers in the People's Republic of China, today announced the appointments of Mr. Junyi Li ("Mr. Li") and Mr. Siu Kuen Leung ("Mr. Leung") as independent directors to the Company's Board of Directors. Together with the Company's current three board members, the company's board now consists of five members. Three of the five board members each qualify as "independent" directors as defined by the rules of the NASDAQ Stock Market.

　　Mr. Li was appointed as an independent director effective March 10, 2010. Mr. Li has been active in the amorphous alloy industry for more than 30 years and has served as Vice President of Advanced Science &amp; Technology Co., Ltd. (Public, SHE: 000969) since 2004. Mr. Li previously served as the Executive Deputy Chief of National Amorphous and Nano-Crystalline Engineering Center, and General Manager of the Amorphous Division. As a senior engineer in the industry, Mr. Li was named as an "Advanced Individual" of the "Ninth Five-Year National Key Science and Technology Research Programs" and awarded a special government allowance for scientists. He was also awarded the Second Prize of National Science and Technology Progress and the First Prize of Metallurgical Science and Technology Progress. Mr. Li has a Bachelor's degree from Northeastern University and serves as an instructor in the university.

　　Mr. Leung was appointed as an independent director effective March 10, 2010. Mr. Leung is a member of the Hong Kong Institute of Certified Public Accountants and an associate of the Chartered Institute of Management Accountants (U.K.), with more than 20 years of experience in accounting and finance. He has been an independent director of Everpride Biopharmaceutical Company Limited, a company listed on the Growth Enterprise Market of the Hong Kong Stock Exchange, since November 2009. He was an executive director of China Golden Development Holding Limited, a company listed on the main board of the Hong Kong Stock Exchange, during the period from April 2007 to December 2008. Mr. Leung holds a Master of Business Administration degree and a Bachelor of Science (economics) degree from Hong Kong Polytechnic (now named the Hong Kong Polytechnic University). 

　　Mr. Yong Xing Song, Chairman of the Board of China Power Equipment, said, "We are pleased to have individuals of this high caliber join us as independent directors on our board of directors. We look forward to the substantial knowledge and diverse experience that both will contribute to our Company. I believe Mr. Leung, with his extensive experience, will help to further enhance the Company's financial systems and internal controls. Mr. Li will bring new perspectives, understanding, and great knowledge to our amorphous alloy transformer core and transformer business. 

　　Mr. Song continued, "These outstanding professionals will be good stewards for China Power Equipment's shareholders as we navigate the technological and financial markets. The election of these board members is major step toward achieving our goal to maximize value for our shareholders."

　　About China Power Equipment, Inc.

　　China Power Equipment, Inc., through its wholly-owned subsidiary, Xi'an Amorphous Zhongxi Co., Ltd., has developed a proprietary patented technology to produce a new generation of energy saving electricity transformers and transformer cores. The company currently manufactures 59 models of transformers in four product series that are sold throughout China. The company was formed in 2006 as a U.S. corporation, and in November 2006, created a Chinese subsidiary that was granted a license as a privately held wholly owned foreign enterprise by the Chinese government.

　　Safe harbor

　　Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. 

　　The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts, and legal restrictions on raising capital or acquiring companies outside China. 

　　Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at http://www.sec.gov . 

　　We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf except as required by law.

　　For more information on China Power Equipment please visit our website at http://www.chinapower-equipment.com .]]></description>
		<detail><![CDATA[　　NEW YORK, March 17 /PRNewswire-Asia/ -- China Power Equipment, Inc. ("China Power Equipment", OTC Bulletin Board: CPQQ), the manufacturer of a new generation of energy saving electric transformer cores and transformers in the People's Republic of China, today announced the appointments of Mr. Junyi Li ("Mr. Li") and Mr. Siu Kuen Leung ("Mr. Leung") as independent directors to the Company's Board of Directors. Together with the Company's current three board members, the company's board now consists of five members. Three of the five board members each qualify as "independent" directors as defined by the rules of the NASDAQ Stock Market.

　　Mr. Li was appointed as an independent director effective March 10, 2010. Mr. Li has been active in the amorphous alloy industry for more than 30 years and has served as Vice President of Advanced Science &amp; Technology Co., Ltd. (Public, SHE: 000969) since 2004. Mr. Li previously served as the Executive Deputy Chief of National Amorphous and Nano-Crystalline Engineering Center, and General Manager of the Amorphous Division. As a senior engineer in the industry, Mr. Li was named as an "Advanced Individual" of the "Ninth Five-Year National Key Science and Technology Research Programs" and awarded a special government allowance for scientists. He was also awarded the Second Prize of National Science and Technology Progress and the First Prize of Metallurgical Science and Technology Progress. Mr. Li has a Bachelor's degree from Northeastern University and serves as an instructor in the university.

　　Mr. Leung was appointed as an independent director effective March 10, 2010. Mr. Leung is a member of the Hong Kong Institute of Certified Public Accountants and an associate of the Chartered Institute of Management Accountants (U.K.), with more than 20 years of experience in accounting and finance. He has been an independent director of Everpride Biopharmaceutical Company Limited, a company listed on the Growth Enterprise Market of the Hong Kong Stock Exchange, since November 2009. He was an executive director of China Golden Development Holding Limited, a company listed on the main board of the Hong Kong Stock Exchange, during the period from April 2007 to December 2008. Mr. Leung holds a Master of Business Administration degree and a Bachelor of Science (economics) degree from Hong Kong Polytechnic (now named the Hong Kong Polytechnic University). 

　　Mr. Yong Xing Song, Chairman of the Board of China Power Equipment, said, "We are pleased to have individuals of this high caliber join us as independent directors on our board of directors. We look forward to the substantial knowledge and diverse experience that both will contribute to our Company. I believe Mr. Leung, with his extensive experience, will help to further enhance the Company's financial systems and internal controls. Mr. Li will bring new perspectives, understanding, and great knowledge to our amorphous alloy transformer core and transformer business. 

　　Mr. Song continued, "These outstanding professionals will be good stewards for China Power Equipment's shareholders as we navigate the technological and financial markets. The election of these board members is major step toward achieving our goal to maximize value for our shareholders."

　　About China Power Equipment, Inc.

　　China Power Equipment, Inc., through its wholly-owned subsidiary, Xi'an Amorphous Zhongxi Co., Ltd., has developed a proprietary patented technology to produce a new generation of energy saving electricity transformers and transformer cores. The company currently manufactures 59 models of transformers in four product series that are sold throughout China. The company was formed in 2006 as a U.S. corporation, and in November 2006, created a Chinese subsidiary that was granted a license as a privately held wholly owned foreign enterprise by the Chinese government.

　　Safe harbor

　　Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. 

　　The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts, and legal restrictions on raising capital or acquiring companies outside China. 

　　Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at http://www.sec.gov . 

　　We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf except as required by law.

　　For more information on China Power Equipment please visit our website at http://www.chinapower-equipment.com .]]></detail>
		<source><![CDATA[SOURCE  China Power Equipment, Inc.]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100212411-1.html</link>
		<title>Legend Media's Subsidiary Enters into Advertising Contract with Sanya Luhuitou Tourism Area Development Co., Ltd. Valued at RMB 2,773,200 (US$406,032)</title>
		<author>PR Newswire Asia</author>
		
		<category>AD/Marketing/Media</category>
		
		<category>Travel</category>
		
		<pubDate>Wed, 17 Mar 2010 04:01:00 +0800</pubDate>
		<guid>4028ee8c2765857201276586abdd000a</guid>
		<description><![CDATA[ 
　　BEIJING, March 17 /PRNewswire-Asia/ -- Legend Media (OTC Bulletin 
Board: LEGE) ("Legend Media" or "the Company"), a Chinese multi-media advertising company, today announced that the Company's subsidiary Beijing Yin Se Ling Dong Advertising Co., Ltd. has signed a contract with Sanya Luhuitou Tourism Area Development Co., Ltd. for its Serenity Coast Project of RMB 2,773,200 (approximately US$406,032 based on the exchange rate as of the date of this press release). 
　　Sanya Luhuitou Tourism Area Development Co., Ltd. is a large-scale real estate developer. Their Serenity Coast Project Phase I covers an area of 70.4 hectares. After development has been completed, there will be sea-view apartments, landscape villas, an intercontinental hotel and a shopping mall. It has received many awards including the "Best Value Coastal Real Estate in China" in the 4th China Real Estate Week held in Hong Kong, one of the "Top 10 Real Estate Projects with Beijing Attention", "Most Impressive Sea-view Residence", "Best Coastal Real Estate Development Model in 20 Years", "Top 5 Famous Residence in China", and "Top Luxury House."
　　Mr. Ju Baochun, Chief Executive Officer and Director of Legend Media, commented, "We are extremely pleased to have entered into an airline magazine advertising contract with one of the most prestigious large-scale real estate developers in China, and the specific developer of the Serenity Coast Project. The beauty and magnitude of this project has gained the attention of China's real estate industry and the completion will be quite an accomplishment. We are glad to be able to offer our strategic advertising services to Sanya Luhuitou Tourism Area Development Co and look forward to promoting the Serenity Coast Project to our national wide readers."

　　About Legend Media
　　Website: http://www.legend-media.com 
　　Legend Media, Inc. (OTCBB: LEGE), headquartered in Beijing, is a leading China advertising company focused on selling advertising that reaches affluent consumers in China through major airline magazines and radio channels in key districts of China. The Company currently owns an exclusive sales agent contract for Expression, the airline magazine for Hainan Airlines Group (HNA Group). With the execution of the policy of building Hainan into an International Tourist Island, there will be more business opportunities for the airline magazine. What's more, the airline magazine is distributed to a network of the subsidiary hotels of HNA Group, which enables the airline magazine to reach 20 million direct readers and cover 50 million to 60 million readers indirectly per year. 
　　Aside from the main business, Legend Media owns two radio stations in Tianjin and Xi'an. The execution of the policy of developing the Ring Bohai Economic Circle brings Tianjin opportunities to further develop, enabling radio media to have great growth potential. Xi'an is an old city in China and with the development of Xi'an economy, the radio business of Xi'an will have new business opportunities.
　　Legend Media will continue to develop a sales network and strive to cover and eventually reach the most valuable direct advertisers in China and expand the sales business of the Company through the acquisition of new and 
good-quality media.

　　Safe Harbor Statement 
　　This press release contains certain statements that may include 
'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements. 

　　For more information, please contact:
 
　　 Lauren Milner
　　 American Capital Ventures
　　 Tel:   +1-305-918-7000
　　 Email: info@amcapventures.com

]]></description>
		<detail><![CDATA[ 
　　BEIJING, March 17 /PRNewswire-Asia/ -- Legend Media (OTC Bulletin 
Board: LEGE) ("Legend Media" or "the Company"), a Chinese multi-media advertising company, today announced that the Company's subsidiary Beijing Yin Se Ling Dong Advertising Co., Ltd. has signed a contract with Sanya Luhuitou Tourism Area Development Co., Ltd. for its Serenity Coast Project of RMB 2,773,200 (approximately US$406,032 based on the exchange rate as of the date of this press release). 
　　Sanya Luhuitou Tourism Area Development Co., Ltd. is a large-scale real estate developer. Their Serenity Coast Project Phase I covers an area of 70.4 hectares. After development has been completed, there will be sea-view apartments, landscape villas, an intercontinental hotel and a shopping mall. It has received many awards including the "Best Value Coastal Real Estate in China" in the 4th China Real Estate Week held in Hong Kong, one of the "Top 10 Real Estate Projects with Beijing Attention", "Most Impressive Sea-view Residence", "Best Coastal Real Estate Development Model in 20 Years", "Top 5 Famous Residence in China", and "Top Luxury House."
　　Mr. Ju Baochun, Chief Executive Officer and Director of Legend Media, commented, "We are extremely pleased to have entered into an airline magazine advertising contract with one of the most prestigious large-scale real estate developers in China, and the specific developer of the Serenity Coast Project. The beauty and magnitude of this project has gained the attention of China's real estate industry and the completion will be quite an accomplishment. We are glad to be able to offer our strategic advertising services to Sanya Luhuitou Tourism Area Development Co and look forward to promoting the Serenity Coast Project to our national wide readers."

　　About Legend Media
　　Website: http://www.legend-media.com 
　　Legend Media, Inc. (OTCBB: LEGE), headquartered in Beijing, is a leading China advertising company focused on selling advertising that reaches affluent consumers in China through major airline magazines and radio channels in key districts of China. The Company currently owns an exclusive sales agent contract for Expression, the airline magazine for Hainan Airlines Group (HNA Group). With the execution of the policy of building Hainan into an International Tourist Island, there will be more business opportunities for the airline magazine. What's more, the airline magazine is distributed to a network of the subsidiary hotels of HNA Group, which enables the airline magazine to reach 20 million direct readers and cover 50 million to 60 million readers indirectly per year. 
　　Aside from the main business, Legend Media owns two radio stations in Tianjin and Xi'an. The execution of the policy of developing the Ring Bohai Economic Circle brings Tianjin opportunities to further develop, enabling radio media to have great growth potential. Xi'an is an old city in China and with the development of Xi'an economy, the radio business of Xi'an will have new business opportunities.
　　Legend Media will continue to develop a sales network and strive to cover and eventually reach the most valuable direct advertisers in China and expand the sales business of the Company through the acquisition of new and 
good-quality media.

　　Safe Harbor Statement 
　　This press release contains certain statements that may include 
'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements. 

　　For more information, please contact:
 
　　 Lauren Milner
　　 American Capital Ventures
　　 Tel:   +1-305-918-7000
　　 Email: info@amcapventures.com

]]></detail>
		<source><![CDATA[SOURCE  Legend Media, Inc.]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100220311-1.html</link>
		<title>China Recycling Energy Corp. Announces Second Expansion of the Low Carbon Fortune-Energy Recycling No. 1 Collective Capital Trust Plan to Raise $13.69 million</title>
		<author>PR Newswire Asia</author>
		
		<category>Finance</category>
		
		<pubDate>Wed, 17 Mar 2010 01:58:00 +0800</pubDate>
		<guid>4028ee8c2766a9030127681f97f10019</guid>
		<description><![CDATA[　　XI'AN, China, March 17 /PRNewswire-Asia/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, announces the second expansion of the Low Carbon Fortune-Energy Recycling No. 1 Collective Capital Trust Plan ("Plan") by Beijing International Trust Co., Ltd. ("Beijing Trust"), to raise up to RMB 93,120,000 (approximately $13.69 million) of loan capital to support the Company's Erdos power generation projects.

　　This expansion is in addition to the RMB 25,000,000 (approximately $3.68 million) raised on December 18, 2009 during the first expansion of the Plan, and RMB 181,880,000 (approximately $26.75 million) raised on December 3, 2009 upon the establishment of the Plan.

　　The second expansion of the Plan intends to raise up to RMB 93,120,000 (approximately $13.69 million totally) in a three phase period, beginning March 11, 2010 and ending June 3, 2010. 

　　The money, if raised, will be a part of the capital trust loan agreement entered into between Beijing International Trust Co., Ltd. and Erdos TCH Energy Saving Development Co., Ltd ("Erdos TCH"), a joint venture between Xi'an TCH Energy Technology Co., Ltd, a subsidiary of the Company, and Erdos Metallurgy Co., Ltd. on November 19, 2009. 

　　Beijing Trust will lend the money to Erdos TCH for its waste heat power generation project phase II and phase III construction and operation, through which Erdos TCH will recycle heat from groups of furnaces of Erdos Metallurgy's metal refining plants to generate power and steam, which will then be sold back to Erdos Metallurgy Co., Ltd.

　　About China Recycling Energy Corp.

　　China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

　　For more information about CREG, please visit http://www.creg-cn.com .

　　Safe Harbor Statement

　　This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.]]></description>
		<detail><![CDATA[　　XI'AN, China, March 17 /PRNewswire-Asia/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, announces the second expansion of the Low Carbon Fortune-Energy Recycling No. 1 Collective Capital Trust Plan ("Plan") by Beijing International Trust Co., Ltd. ("Beijing Trust"), to raise up to RMB 93,120,000 (approximately $13.69 million) of loan capital to support the Company's Erdos power generation projects.

　　This expansion is in addition to the RMB 25,000,000 (approximately $3.68 million) raised on December 18, 2009 during the first expansion of the Plan, and RMB 181,880,000 (approximately $26.75 million) raised on December 3, 2009 upon the establishment of the Plan.

　　The second expansion of the Plan intends to raise up to RMB 93,120,000 (approximately $13.69 million totally) in a three phase period, beginning March 11, 2010 and ending June 3, 2010. 

　　The money, if raised, will be a part of the capital trust loan agreement entered into between Beijing International Trust Co., Ltd. and Erdos TCH Energy Saving Development Co., Ltd ("Erdos TCH"), a joint venture between Xi'an TCH Energy Technology Co., Ltd, a subsidiary of the Company, and Erdos Metallurgy Co., Ltd. on November 19, 2009. 

　　Beijing Trust will lend the money to Erdos TCH for its waste heat power generation project phase II and phase III construction and operation, through which Erdos TCH will recycle heat from groups of furnaces of Erdos Metallurgy's metal refining plants to generate power and steam, which will then be sold back to Erdos Metallurgy Co., Ltd.

　　About China Recycling Energy Corp.

　　China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.

　　For more information about CREG, please visit http://www.creg-cn.com .

　　Safe Harbor Statement

　　This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.]]></detail>
		<source><![CDATA[SOURCE  China Recycling Energy Corp. ]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100218511-1.html</link>
		<title>China Ritar Power Announces Delay in Its Order with China Mobile</title>
		<author>PR Newswire Asia</author>
		
		<category>IT</category>
		
		<pubDate>Wed, 17 Mar 2010 01:17:00 +0800</pubDate>
		<guid>4028ee8c2766a903012767f992180018</guid>
		<description><![CDATA[　　SHENZHEN, China, March 17 /PRNewswire-Asia/ -- China Ritar Power Corp. (Nasdaq: CRTP) ("China Ritar" or the "Company"), a leading Chinese manufacturer of lead acid batteries, today announced that the delivery of its order from China Mobile Limited in the aggregate amount of $15 million originally planned for 2009 has been delayed until 2010. The delay is a result of a later than expected 3G network rollout by China Mobile Limited.

　　China Ritar's Chairman and CEO, Mr. Jiada Hu stated, "This delay resulted in lower revenue for 2009 than we originally projected. However, we remain confident that the order with China Mobile Limited will be delivered during 2010."

　　About China Ritar Corp.

　　China Ritar designs, develops, manufactures, and markets environmentally friendly lead acid batteries with a wide range of capacities and applications, including telecommunications, uninterruptible power supply (UPS) devices, light electrical vehicles (LEV), and renewable energy systems (solar and wind power). China Ritar sells, markets, and services six series and 197 models of Ritar-branded, cadmium-free, valve-regulated lead-acid (VRLA) batteries. Products are sold worldwide with sales in 81 countries including China, India, and numerous markets in Europe and the Americas. Additional information can be found at the Company's website http://www.ritarpower.com . 

　　Safe Harbor Statement 

　　Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Ritar on its conference call in relation to this release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included herein are forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these 
forward-looking statements.]]></description>
		<detail><![CDATA[　　SHENZHEN, China, March 17 /PRNewswire-Asia/ -- China Ritar Power Corp. (Nasdaq: CRTP) ("China Ritar" or the "Company"), a leading Chinese manufacturer of lead acid batteries, today announced that the delivery of its order from China Mobile Limited in the aggregate amount of $15 million originally planned for 2009 has been delayed until 2010. The delay is a result of a later than expected 3G network rollout by China Mobile Limited.

　　China Ritar's Chairman and CEO, Mr. Jiada Hu stated, "This delay resulted in lower revenue for 2009 than we originally projected. However, we remain confident that the order with China Mobile Limited will be delivered during 2010."

　　About China Ritar Corp.

　　China Ritar designs, develops, manufactures, and markets environmentally friendly lead acid batteries with a wide range of capacities and applications, including telecommunications, uninterruptible power supply (UPS) devices, light electrical vehicles (LEV), and renewable energy systems (solar and wind power). China Ritar sells, markets, and services six series and 197 models of Ritar-branded, cadmium-free, valve-regulated lead-acid (VRLA) batteries. Products are sold worldwide with sales in 81 countries including China, India, and numerous markets in Europe and the Americas. Additional information can be found at the Company's website http://www.ritarpower.com . 

　　Safe Harbor Statement 

　　Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Ritar on its conference call in relation to this release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included herein are forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these 
forward-looking statements.]]></detail>
		<source><![CDATA[SOURCE  China Ritar Power Corp.]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100220211-1.html</link>
		<title>Crown Holdings, Inc. Expands Presence In China</title>
		<author>PR Newswire Asia</author>
		
		<category>General</category>
		
		<category>Manufacturing</category>
		
		<pubDate>Tue, 16 Mar 2010 22:27:00 +0800</pubDate>
		<guid>4028ee8c2766a9030127675db1dd0017</guid>
		<description><![CDATA[

　　PHILADELPHIA, March 16 /PRNewswire-Asia/ -- Crown Holdings, Inc. (NYSE: CCK), a leading supplier of metal packaging products worldwide, today announced  that its subsidiary, CROWN Asia Pacific Holdings Ltd., plans to build a new  beverage can plant in Hangzhou, China.

　　Hangzhou is a city located in the Yangtze River Delta in the People's Republic of China. It is located about 120 miles southwest of Shanghai and is the capital of the Zhejiang province. This ancient city was the capital of the Southern Song Dynasty and has become a modern and vibrant economical center with a population of approximately 7 million people. Zhejiang province has a population of approximately 50 million people.

　　The new plant in Hangzhou will be sized to accommodate multiple can lines and will have an initial annual production capacity of approximately 600 million 2-piece, 33cl aluminum beverage cans. Capabilities to make other can sizes will be incorporated in the design. Production is expected to commence in the second quarter of 2011.

　　"Demand for two-piece beverage cans is growing in China and we expect that more customers will decide to make the transition from three-piece to two-piece beverage cans to lower their costs and enhance the quality of their beverage packaging," said Jozef Salaerts, President of Crown's Asia-Pacific Division. "China is an important market for us and we are pleased to expand our capacity with a fifth plant to meet our customers' increased demand."

　　Cautionary Note Regarding Forward-Looking Statements

　　Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors, including whether demand will continue to grow for two-piece beverage cans in China and elsewhere in Asia, whether the Company can successfully implement its plans to build and commence production at the new Hangzhou plant, and the Company's ability to expand in China, that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward-Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2009 and in subsequent filings made prior to or after the date hereof. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

　　About Crown Holdings

　　Crown Holdings, Inc., through its subsidiaries, is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in Philadelphia, Pennsylvania. Please visit http://www.crowncork.com .

　　For more information, contact:

　　In Asia:
　　 Jozef Salaerts, President - Asia-Pacific Division
　　 Tel:   +65-62294881
　　 Email: jozef.salaerts@crowncork.com.sg

　　For Investors:
　　 Thomas A. Kelly, Senior Vice President - Finance
　　 Tel: (215) 698-5341

　　 Ed Bisno, Bisno Communications
　　 Tel: +1-212-717-7578

　　For editorial inquiries:
　　 Michael F. Dunleavy, Vice President of Corporate Affairs and Public Relations
　　 Tel:   +1-215-698-5051
　　 Email: mdunleavy@crowncork.com

]]></description>
		<detail><![CDATA[

　　PHILADELPHIA, March 16 /PRNewswire-Asia/ -- Crown Holdings, Inc. (NYSE: CCK), a leading supplier of metal packaging products worldwide, today announced  that its subsidiary, CROWN Asia Pacific Holdings Ltd., plans to build a new  beverage can plant in Hangzhou, China.

　　Hangzhou is a city located in the Yangtze River Delta in the People's Republic of China. It is located about 120 miles southwest of Shanghai and is the capital of the Zhejiang province. This ancient city was the capital of the Southern Song Dynasty and has become a modern and vibrant economical center with a population of approximately 7 million people. Zhejiang province has a population of approximately 50 million people.

　　The new plant in Hangzhou will be sized to accommodate multiple can lines and will have an initial annual production capacity of approximately 600 million 2-piece, 33cl aluminum beverage cans. Capabilities to make other can sizes will be incorporated in the design. Production is expected to commence in the second quarter of 2011.

　　"Demand for two-piece beverage cans is growing in China and we expect that more customers will decide to make the transition from three-piece to two-piece beverage cans to lower their costs and enhance the quality of their beverage packaging," said Jozef Salaerts, President of Crown's Asia-Pacific Division. "China is an important market for us and we are pleased to expand our capacity with a fifth plant to meet our customers' increased demand."

　　Cautionary Note Regarding Forward-Looking Statements

　　Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors, including whether demand will continue to grow for two-piece beverage cans in China and elsewhere in Asia, whether the Company can successfully implement its plans to build and commence production at the new Hangzhou plant, and the Company's ability to expand in China, that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward-Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2009 and in subsequent filings made prior to or after the date hereof. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

　　About Crown Holdings

　　Crown Holdings, Inc., through its subsidiaries, is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in Philadelphia, Pennsylvania. Please visit http://www.crowncork.com .

　　For more information, contact:

　　In Asia:
　　 Jozef Salaerts, President - Asia-Pacific Division
　　 Tel:   +65-62294881
　　 Email: jozef.salaerts@crowncork.com.sg

　　For Investors:
　　 Thomas A. Kelly, Senior Vice President - Finance
　　 Tel: (215) 698-5341

　　 Ed Bisno, Bisno Communications
　　 Tel: +1-212-717-7578

　　For editorial inquiries:
　　 Michael F. Dunleavy, Vice President of Corporate Affairs and Public Relations
　　 Tel:   +1-215-698-5051
　　 Email: mdunleavy@crowncork.com

]]></detail>
		<source><![CDATA[SOURCE  Crown Holdings, Inc.]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100217511-1.html</link>
		<title>Frbiz Reports Polyurethane Industry Chain Product Price Increases</title>
		<author>PR Newswire Asia</author>
		
		<category>Chemical</category>
		
		<pubDate>Tue, 16 Mar 2010 22:00:00 +0800</pubDate>
		<guid>4028ee8c27658572012765d576080014</guid>
		<description><![CDATA[　　BEIJING, March 16 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, reports polyurethane industry chain product price increases.

　　Among the 100 chemical products reviewed by Frbiz, the average prices in the last two weeks compared with the average price from the previous two weeks are as follows: 54 kinds of product prices rose, 18 types fell, 28 types remained stable. Among them, those that rose more than 3% include: rigid polyether 9.8%, AA 9.1%, sulfuric acid 8.7%, soda ash 8.1%, chlorine 7.8%, vinyl acetate 7.2%, acetic acid 7.1%, BDO 6.5%, bitumen 6.2%, spandex 5.9%, sulfur 5.9%, acrylonitrile 5.5%, cotton linter 5.5%, polymerization MDI 5.0%, pure MDI 5.0%, naphtha, 5.0%, PU slurry 4.8%, propylene oxide 4.7%, caprolactam 4.7%, cotton pulp 4.5%, the soft foam polyether 4.3%, DMF 3.8%, acetic anhydride 3.7%, coal tar 3.6%, ammonia 3.5%, bisphenol A 3.4%, and formaldehyde 3.1%.

　　It is clear from the polyurethane industry chain products' price increases that there may be opportunity for investment focus for BDO, spandex, polymerization MDI, pure MDI, propylene oxide, and DMF.

　　Expansion of Product Variety

　　Current product variety is expanding to include vinyl acetate PVA, maleic anhydride BDO, DMF, ethylene PVC, AA, spandex, acetate, MDI, and calcium carbide method BDO. Among them, vinyl acetate PVA, and ethylene PVC are mainly affected by the vinyl price decreases, while the polyurethane industry chain continues to rise.

　　Product Price Decreases

　　The variety of products with decreasing prices currently include mainly calcium carbide PVC, sodium tripolyphosphate, ethylene glycol, ammonium nitrate, DAP, yellow phosphorus, and calcium carbide PVA.

　　About Frbiz.com

　　Frbiz.com is a promising e-commerce company and a leading vertical search engine company in China. Frbiz.com offers a variety of high quality products such as mattress protectors (http://www.frbiz.com/q-mattress_protector/ ), projector ceiling mounts (http://www.frbiz.com/q-projector_ceiling_mount/ ), evaporative coolers (http://www.frbiz.com/q-evaporative_cooler/ ) and many more.

　　For more information, please contact: 

　　 Frbiz.com
　　 Phone: +86-10-6556-9770
　　 Email: my@frbiz.com ]]></description>
		<detail><![CDATA[　　BEIJING, March 16 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, reports polyurethane industry chain product price increases.

　　Among the 100 chemical products reviewed by Frbiz, the average prices in the last two weeks compared with the average price from the previous two weeks are as follows: 54 kinds of product prices rose, 18 types fell, 28 types remained stable. Among them, those that rose more than 3% include: rigid polyether 9.8%, AA 9.1%, sulfuric acid 8.7%, soda ash 8.1%, chlorine 7.8%, vinyl acetate 7.2%, acetic acid 7.1%, BDO 6.5%, bitumen 6.2%, spandex 5.9%, sulfur 5.9%, acrylonitrile 5.5%, cotton linter 5.5%, polymerization MDI 5.0%, pure MDI 5.0%, naphtha, 5.0%, PU slurry 4.8%, propylene oxide 4.7%, caprolactam 4.7%, cotton pulp 4.5%, the soft foam polyether 4.3%, DMF 3.8%, acetic anhydride 3.7%, coal tar 3.6%, ammonia 3.5%, bisphenol A 3.4%, and formaldehyde 3.1%.

　　It is clear from the polyurethane industry chain products' price increases that there may be opportunity for investment focus for BDO, spandex, polymerization MDI, pure MDI, propylene oxide, and DMF.

　　Expansion of Product Variety

　　Current product variety is expanding to include vinyl acetate PVA, maleic anhydride BDO, DMF, ethylene PVC, AA, spandex, acetate, MDI, and calcium carbide method BDO. Among them, vinyl acetate PVA, and ethylene PVC are mainly affected by the vinyl price decreases, while the polyurethane industry chain continues to rise.

　　Product Price Decreases

　　The variety of products with decreasing prices currently include mainly calcium carbide PVC, sodium tripolyphosphate, ethylene glycol, ammonium nitrate, DAP, yellow phosphorus, and calcium carbide PVA.

　　About Frbiz.com

　　Frbiz.com is a promising e-commerce company and a leading vertical search engine company in China. Frbiz.com offers a variety of high quality products such as mattress protectors (http://www.frbiz.com/q-mattress_protector/ ), projector ceiling mounts (http://www.frbiz.com/q-projector_ceiling_mount/ ), evaporative coolers (http://www.frbiz.com/q-evaporative_cooler/ ) and many more.

　　For more information, please contact: 

　　 Frbiz.com
　　 Phone: +86-10-6556-9770
　　 Email: my@frbiz.com ]]></detail>
		<source><![CDATA[SOURCE  Frbiz.com]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100217611-1.html</link>
		<title>Himfr Evaluates Sedan Cars</title>
		<author>PR Newswire Asia</author>
		
		<category>Automotive</category>
		
		<pubDate>Tue, 16 Mar 2010 22:00:00 +0800</pubDate>
		<guid>4028ee8c27658572012765cc964b0013</guid>
		<description><![CDATA[　　BEIJING, March 16 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, evaluates sedan cars.

　　Charade N5

　　The Charade N5, which came out at the end of 2009, has drawn a lot of attention. It is equipped with 1.3L and 1.0L engines, and the car's interior is spacious. At less than RMB 50,000 for a Chinese small car, the Charade N5 is a relatively competitive model. The car's rigid body structure and large electronic driver's seat airbag provide consumers with a new standard of safety. Its high-tech electronic power steering system is motor-driven; compared with traditional hydraulic power, its steering is more precise, easier at low speeds, and the electronic power boosts fuel efficiency. This technology is not very prevalent in luxury cars.

　　The Charade N5 uses two kinds of engine, one of them, the 1.3L engine, is an independently developed CA4GA1 engine, which uses VCT-i technology, with a maximum power output is 67kW / 6000rpm and peak torque of 120N x m/4400Nm. With a maximum speed of 173km / h, fuel consumption is only 5.49L per 100 kilometers.

　　Geely, the reference price is 43,800 yuan.

　　Geely (http://www.himfr.com/list-product-Automobile-03000000-1.html ) is simple and reliable, with a lightweight design. It has an attractive front face design, with eagle eye-style headlights, which are very cool and dynamic. There are a number of circular lamps on the model's truncated back end, which are equipped with very powerful bulbs. 

　　The '08 Geely models still come with 1.3L and 1.5L engines. Both engines have meet State IV criteria. The 1.5L engine independently developed by Geely can reach 6000 rpm at the engine's maximum power output of 69kW, and at 5200 rpm, it can reach maximum torque of 128Nm.

　　About Himfr.com

　　Himfr.com is a promising e-commerce company and a leading vertical search engine company in China. Himfr.com offers a variety of high quality products such as Gillette Mach (http://www.himfr.com/buy-gillette_mach/ ), slice toasters (http://www.himfr.com/buy-slice_toaster/ ), ankle braces (http://www.himfr.com/buy-ankle_brace/ ) and many more.

　　For more information, please contact: 

　　 Himfr.com
　　 Tel:   +86-10-6556-9770
　　 Email: my@himfr.com ]]></description>
		<detail><![CDATA[　　BEIJING, March 16 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, evaluates sedan cars.

　　Charade N5

　　The Charade N5, which came out at the end of 2009, has drawn a lot of attention. It is equipped with 1.3L and 1.0L engines, and the car's interior is spacious. At less than RMB 50,000 for a Chinese small car, the Charade N5 is a relatively competitive model. The car's rigid body structure and large electronic driver's seat airbag provide consumers with a new standard of safety. Its high-tech electronic power steering system is motor-driven; compared with traditional hydraulic power, its steering is more precise, easier at low speeds, and the electronic power boosts fuel efficiency. This technology is not very prevalent in luxury cars.

　　The Charade N5 uses two kinds of engine, one of them, the 1.3L engine, is an independently developed CA4GA1 engine, which uses VCT-i technology, with a maximum power output is 67kW / 6000rpm and peak torque of 120N x m/4400Nm. With a maximum speed of 173km / h, fuel consumption is only 5.49L per 100 kilometers.

　　Geely, the reference price is 43,800 yuan.

　　Geely (http://www.himfr.com/list-product-Automobile-03000000-1.html ) is simple and reliable, with a lightweight design. It has an attractive front face design, with eagle eye-style headlights, which are very cool and dynamic. There are a number of circular lamps on the model's truncated back end, which are equipped with very powerful bulbs. 

　　The '08 Geely models still come with 1.3L and 1.5L engines. Both engines have meet State IV criteria. The 1.5L engine independently developed by Geely can reach 6000 rpm at the engine's maximum power output of 69kW, and at 5200 rpm, it can reach maximum torque of 128Nm.

　　About Himfr.com

　　Himfr.com is a promising e-commerce company and a leading vertical search engine company in China. Himfr.com offers a variety of high quality products such as Gillette Mach (http://www.himfr.com/buy-gillette_mach/ ), slice toasters (http://www.himfr.com/buy-slice_toaster/ ), ankle braces (http://www.himfr.com/buy-ankle_brace/ ) and many more.

　　For more information, please contact: 

　　 Himfr.com
　　 Tel:   +86-10-6556-9770
　　 Email: my@himfr.com ]]></detail>
		<source><![CDATA[SOURCE  Himfr.com]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100218611-1.html</link>
		<title>IntraLinks Attains Gold Certified Partner Status in Microsoft Partner Program </title>
		<author>PR Newswire Asia</author>
		
		<category>General</category>
		
		<pubDate>Tue, 16 Mar 2010 22:00:00 +0800</pubDate>
		<guid>4028ee8c2766a9030127673964970016</guid>
		<description><![CDATA[-- IntraLinks Further Distinguishes Itself by Earning Microsoft Competencies in ISV/Software Solutions and SOA and Business Process


　　NEW YORK, March 16 /PRNewswire-Asia/ -- 

　　IntraLinks, the leading provider of critical information exchange solutions, today announced it has attained Gold Certified Partner status in the Microsoft Partner Program with Competencies in ISV/Software Solutions and SOA and Business Process, recognizing IntraLinks' expertise and impact in the technology marketplace. As a Gold Certified Partner, IntraLinks has demonstrated expertise with Microsoft technologies and a proven ability to meet customers' needs. Microsoft Gold Certified Partners receive a rich set of benefits, including access, training and support, giving them a competitive advantage in the channel.

　　"We are pleased to have attained Gold Certified Partner status in the Microsoft Partner Program. This allows us to clearly promote our expertise and relationship with Microsoft to our customers," said Andrew Damico, CEO of IntraLinks. "The benefits provided through our Gold Certified Partner status will allow us to continue to enhance the critical information exchange offerings that we provide for customers."

　　"Customers are looking for partner companies that can bridge the gap between their business demands and technology capabilities," said Allison Watson, corporate vice president of the Worldwide Partner Group at Microsoft Corp. "They need to trust in a company that can act as an expert adviser for their long-term strategic technology plans. Microsoft Gold Certified Partners, which have certified expertise and direct training and support from Microsoft, can build a positive customer experience with our technologies. Today, Microsoft recognizes IntraLinks as a new Gold Certified Partner for demonstrating its expertise in providing customer satisfaction using Microsoft products and technology."

　　As one of the requirements for attaining Gold Certified Partner status, IntraLinks had to declare a Microsoft Competency. Microsoft Competencies are designed to help differentiate a partner's capabilities with specific Microsoft technologies to customers looking for a particular type of solution. Each Competency has a unique set of requirements and benefits, formulated to accurately represent the specific skills and services that partners bring to the technology industry.

　　The ISV/Software Solutions Competency recognizes the skill and focus partners bring to a particular solution set. Microsoft Gold Certified Partners that have obtained this competency have a successful record of developing and marketing packed software based on Microsoft technologies. The SOA and Business Process Competency is for systems integrators, solutions and services providers, and software developers with proven proficiency in implementing and deploying integrated, interoperable, and agile solutions that connect information, systems, people, and processes.

　　The Microsoft Partner Program was launched in October 2003 and represents Microsoft's ongoing commitment to the success of partners worldwide. The program offers a single, integrated partnering framework that recognizes partner expertise, rewards the total impact that partners have in the technology marketplace, and delivers more value to help partners' businesses be successful.

　　About IntraLinks

　　IntraLinks provides on-demand solutions for businesses to securely collaborate, communicate and exchange critical information inside and outside the enterprise. For more than a decade, 750,000 professionals from more than 90,000 organizations have relied on IntraLinks to accelerate workflow, optimize business processes and realize new profit potential. IntraLinks counts 800 of the Fortune 1000 as clients, including AstraZeneca Pharmaceuticals LP, Bank of America, Deutsche Bank and the FDIC. For more information, visit http://www.intralinks.com or http://blog.intralinks.com

　　The names of actual companies and products mentioned herein may be the trademarks of their respective owners.　　

　　For more information:

　　 Anna Roberts, IntraLinks 
　　 Tel:   +44-20-7549-5256 
　　 Email: aroberts@intralinks.com]]></description>
		<detail><![CDATA[-- IntraLinks Further Distinguishes Itself by Earning Microsoft Competencies in ISV/Software Solutions and SOA and Business Process


　　NEW YORK, March 16 /PRNewswire-Asia/ -- 

　　IntraLinks, the leading provider of critical information exchange solutions, today announced it has attained Gold Certified Partner status in the Microsoft Partner Program with Competencies in ISV/Software Solutions and SOA and Business Process, recognizing IntraLinks' expertise and impact in the technology marketplace. As a Gold Certified Partner, IntraLinks has demonstrated expertise with Microsoft technologies and a proven ability to meet customers' needs. Microsoft Gold Certified Partners receive a rich set of benefits, including access, training and support, giving them a competitive advantage in the channel.

　　"We are pleased to have attained Gold Certified Partner status in the Microsoft Partner Program. This allows us to clearly promote our expertise and relationship with Microsoft to our customers," said Andrew Damico, CEO of IntraLinks. "The benefits provided through our Gold Certified Partner status will allow us to continue to enhance the critical information exchange offerings that we provide for customers."

　　"Customers are looking for partner companies that can bridge the gap between their business demands and technology capabilities," said Allison Watson, corporate vice president of the Worldwide Partner Group at Microsoft Corp. "They need to trust in a company that can act as an expert adviser for their long-term strategic technology plans. Microsoft Gold Certified Partners, which have certified expertise and direct training and support from Microsoft, can build a positive customer experience with our technologies. Today, Microsoft recognizes IntraLinks as a new Gold Certified Partner for demonstrating its expertise in providing customer satisfaction using Microsoft products and technology."

　　As one of the requirements for attaining Gold Certified Partner status, IntraLinks had to declare a Microsoft Competency. Microsoft Competencies are designed to help differentiate a partner's capabilities with specific Microsoft technologies to customers looking for a particular type of solution. Each Competency has a unique set of requirements and benefits, formulated to accurately represent the specific skills and services that partners bring to the technology industry.

　　The ISV/Software Solutions Competency recognizes the skill and focus partners bring to a particular solution set. Microsoft Gold Certified Partners that have obtained this competency have a successful record of developing and marketing packed software based on Microsoft technologies. The SOA and Business Process Competency is for systems integrators, solutions and services providers, and software developers with proven proficiency in implementing and deploying integrated, interoperable, and agile solutions that connect information, systems, people, and processes.

　　The Microsoft Partner Program was launched in October 2003 and represents Microsoft's ongoing commitment to the success of partners worldwide. The program offers a single, integrated partnering framework that recognizes partner expertise, rewards the total impact that partners have in the technology marketplace, and delivers more value to help partners' businesses be successful.

　　About IntraLinks

　　IntraLinks provides on-demand solutions for businesses to securely collaborate, communicate and exchange critical information inside and outside the enterprise. For more than a decade, 750,000 professionals from more than 90,000 organizations have relied on IntraLinks to accelerate workflow, optimize business processes and realize new profit potential. IntraLinks counts 800 of the Fortune 1000 as clients, including AstraZeneca Pharmaceuticals LP, Bank of America, Deutsche Bank and the FDIC. For more information, visit http://www.intralinks.com or http://blog.intralinks.com

　　The names of actual companies and products mentioned herein may be the trademarks of their respective owners.　　

　　For more information:

　　 Anna Roberts, IntraLinks 
　　 Tel:   +44-20-7549-5256 
　　 Email: aroberts@intralinks.com]]></detail>
		<source><![CDATA[SOURCE  IntraLinks]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100217411-1.html</link>
		<title>China Photography Tour Expands Its Dates</title>
		<author>PR Newswire Asia</author>
		
		<category>Travel</category>
		
		<pubDate>Tue, 16 Mar 2010 21:50:00 +0800</pubDate>
		<guid>4028ee8c27658572012765c929ca0012</guid>
		<description><![CDATA[　　BEIJING, March 16 /PRNewswire-Asia/ -- The China Guide's ( http://www.TheChinaGuide.com ) new photography tour led by Australian professional photographer Anthony Anderton has attracted enough interest for expanded dates. The medium priced photography tour has added two additional dates, one in late June and another in October.

　　The tour is aimed to be professional but without the high price tag that comes with many photography tours.  Accommodation is in 4-star hotels, meals are in quality local restaurants and travelers are accompanied by local guides throughout the tour as well as having Anthony host the group.

　　By keeping the price reasonable it makes it possible to have photographers bring a travel companion who may not be interested in photography as much as in seeing China, its culture and sights.

　　The tour is another in The China Guide's series of "no shopping" group tours, meaning there are no factory shopping stops, which are essentially a time consuming rip-off that many travel agencies in China use to make extra money from their guests.

　　"We are pleased with the interest in our photography tours.  It shows the market is looking for something high quality but with a reasonable price.  We look forward to expanding our photography tour offerings further.  Currently we are looking at options in Tibet and special events such as festivals," commented Peter Danford, owner of The China Guide.  Peter is a photographer himself, he won Beijing Tourism's photography contest in 2007 and has done commercial photography in China for many years.
 
　　About The China Guide

　　The China Guide ( http://www.TheChinaGuide.com ) is a Beijing-based travel agency, American owned and operated.  Specializing in western-style service and quality with hassle free web bookings, they work with clients to customize tours that match their travel style.  Operating only in China, they have up to date knowledge and offer exciting experiences for travelers including their famous Sleep on the Great Wall tour.  The China Guide avoids the common factory shopping stops that are not reflective of the true China.]]></description>
		<detail><![CDATA[　　BEIJING, March 16 /PRNewswire-Asia/ -- The China Guide's ( http://www.TheChinaGuide.com ) new photography tour led by Australian professional photographer Anthony Anderton has attracted enough interest for expanded dates. The medium priced photography tour has added two additional dates, one in late June and another in October.

　　The tour is aimed to be professional but without the high price tag that comes with many photography tours.  Accommodation is in 4-star hotels, meals are in quality local restaurants and travelers are accompanied by local guides throughout the tour as well as having Anthony host the group.

　　By keeping the price reasonable it makes it possible to have photographers bring a travel companion who may not be interested in photography as much as in seeing China, its culture and sights.

　　The tour is another in The China Guide's series of "no shopping" group tours, meaning there are no factory shopping stops, which are essentially a time consuming rip-off that many travel agencies in China use to make extra money from their guests.

　　"We are pleased with the interest in our photography tours.  It shows the market is looking for something high quality but with a reasonable price.  We look forward to expanding our photography tour offerings further.  Currently we are looking at options in Tibet and special events such as festivals," commented Peter Danford, owner of The China Guide.  Peter is a photographer himself, he won Beijing Tourism's photography contest in 2007 and has done commercial photography in China for many years.
 
　　About The China Guide

　　The China Guide ( http://www.TheChinaGuide.com ) is a Beijing-based travel agency, American owned and operated.  Specializing in western-style service and quality with hassle free web bookings, they work with clients to customize tours that match their travel style.  Operating only in China, they have up to date knowledge and offer exciting experiences for travelers including their famous Sleep on the Great Wall tour.  The China Guide avoids the common factory shopping stops that are not reflective of the true China.]]></detail>
		<source><![CDATA[SOURCE  The China Guide]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100219611-1.html</link>
		<title>Supermicro Delivers Application-Optimized Servers for Intel(R) Xeon(R) Processor 5600/3600 Series</title>
		<author>PR Newswire Asia</author>
		
		<category>IT</category>
		
		<pubDate>Tue, 16 Mar 2010 21:30:00 +0800</pubDate>
		<guid>4028ee8c2766a903012767371acf0015</guid>
		<description><![CDATA[Over 70 Server, Workstation &amp; Blade Systems plus 55 Serverboards Available to Boost Performance, Density and Performance-per-Watt


　　SAN JOSE, Calif., March 16 /PRNewswire-Asia/ --

　　Super Micro Computer, Inc. (Nasdaq: SMCI), a global leader in application-optimized, high-performance server solutions, today announced that it has launched a complete, optimized selection of server, workstation and blade solutions to support the new generation Intel(R) Xeon(R) Processor 5600/3600 Series (formerly codenamed Westmere). These solutions boost performance 60%* compared to the previous generation of Nehalem solutions. Featuring power supplies with the highest efficiency in the industry (94%+*) and advanced tuned cooling subsystems and serverboard designs, Supermicro's latest solutions offer the highest performance, density, performance-per-watt and performance-per-dollar.

　　"With Supermicro's innovative architecture and resource sharing, our comprehensive selection of products optimized for the new generation six-core Xeon processors deliver not only the best performance-per-watt but also performance-per-dollar while offering the highest densities in the industry," said Charles Liang, CEO and president of Supermicro. "For example, our new TwinBlade(TM) doubles the number of dual-processor (DP) compute nodes to 20 per 7U, for an incredibly dense and cost-effective 0.35U per node. This breakthrough blade design leverages our successful Twin architecture to provide optimal performance, density and value."

　　"The new Intel(R) Xeon(R) Processor 5600/3600 series provides an exciting foundation for Supermicro to deliver unprecedented new levels of intelligent performance, energy efficiency, and security," said Kirk Skaugen, vice president and general manager of Intel's Data Center Group. "Intel is excited to see the innovation Supermicro is bringing customers around these new Intel technologies."

　　For maximum density and computational performance, Supermicro's TwinBlade(TM), based on the SBI-7226T-T2 blade, supports up to 20 dual-socket server blades per 7U enclosure. Combined with dual 40Gb/s InfiniBand, FCoE or 10GbE switches and dual 1/10GbE switches in one 7U enclosure, TwinBlade(TM) provides the highest performing I/O throughput and scalability in the industry and is a superb solution for high-performance computing (HPC), datacenter, enterprise and cloud computing environments, especially when powered by the new generation six-core Xeon processors.

　　Supermicro's new server and workstation system and motherboard platforms support the entire range of new six-core Intel(R) Xeon(R) Processor 5600/3600 Series, including the highest performance 130-watt SKUs. Consistent with the company's commitment to green computing, these new solutions support both standard 1.5V DDR3 memory modules and low-voltage 1.35V modules.

　　94%+* Supermicro Platinum-level power supplies with PM-Bus come standard on most of these new systems. In addition, Supermicro provides the ultimate in storage and networking flexibility with its Universal I/O (UIO) interface that allows customers to choose from a host of I/O cards including SAS 2.0, 10 Gb Ethernet, Fiber Channel and QDR/DDR InfiniBand subsystems.

　　Supermicro's industry-leading serverboards deliver optimum performance-per-dollar and robust remote management. These new platforms offer onboard IPMI 2.0 with media and KVM-over-LAN support as well as 10Gb Ethernet, high-performance 40Gb/s QDR and cost-effective DDR onboard InfiniBand versions for many of its serverboards, such as the X8DTT series for its popular multi-node 1U Twin(TM), 2U Twin and 2U Twin(2) servers.

　　Supermicro Server Building Block Solutions(R) offer exceptional flexibility and feature advantages. For more information on Supermicro's complete selection of server, workstation and blade solutions, visit http://www.supermicro.com .

　　About Super Micro Computer, Inc. (NASDAQ: SMCI) 

　　Supermicro, the leader in server technology innovation and green computing, provides customers around the world with application-optimized server, workstation, blade, storage and GPU systems. Based on its advanced Server Building Block Solutions, Supermicro offers the most optimized selection for IT, datacenter and HPC deployments. The company's system architecture innovations include the Twin server, double-sided storage and SuperBlade(R) product families. Offering the most comprehensive product lines in the industry, Supermicro provides businesses of all sizes with energy-efficient, earth-friendly solutions that deliver unmatched performance and value. Founded in 1993, Supermicro is headquartered in Silicon Valley with worldwide operations and manufacturing centers in Europe and Asia. For more information, visit http://www.supermicro.com .

　　SMCI-F

　　* Performance and peak power efficiency figures based on internal test results with DMIPS benchmark.

　　Supermicro, SuperBlade and Server Building Block Solutions are registered trademarks and TwinBlade, 1U Twin and 2U Twin(2) are trademarks of Super Micro Computer, Inc. All other trademarks are the property of their respective owners.]]></description>
		<detail><![CDATA[Over 70 Server, Workstation &amp; Blade Systems plus 55 Serverboards Available to Boost Performance, Density and Performance-per-Watt


　　SAN JOSE, Calif., March 16 /PRNewswire-Asia/ --

　　Super Micro Computer, Inc. (Nasdaq: SMCI), a global leader in application-optimized, high-performance server solutions, today announced that it has launched a complete, optimized selection of server, workstation and blade solutions to support the new generation Intel(R) Xeon(R) Processor 5600/3600 Series (formerly codenamed Westmere). These solutions boost performance 60%* compared to the previous generation of Nehalem solutions. Featuring power supplies with the highest efficiency in the industry (94%+*) and advanced tuned cooling subsystems and serverboard designs, Supermicro's latest solutions offer the highest performance, density, performance-per-watt and performance-per-dollar.

　　"With Supermicro's innovative architecture and resource sharing, our comprehensive selection of products optimized for the new generation six-core Xeon processors deliver not only the best performance-per-watt but also performance-per-dollar while offering the highest densities in the industry," said Charles Liang, CEO and president of Supermicro. "For example, our new TwinBlade(TM) doubles the number of dual-processor (DP) compute nodes to 20 per 7U, for an incredibly dense and cost-effective 0.35U per node. This breakthrough blade design leverages our successful Twin architecture to provide optimal performance, density and value."

　　"The new Intel(R) Xeon(R) Processor 5600/3600 series provides an exciting foundation for Supermicro to deliver unprecedented new levels of intelligent performance, energy efficiency, and security," said Kirk Skaugen, vice president and general manager of Intel's Data Center Group. "Intel is excited to see the innovation Supermicro is bringing customers around these new Intel technologies."

　　For maximum density and computational performance, Supermicro's TwinBlade(TM), based on the SBI-7226T-T2 blade, supports up to 20 dual-socket server blades per 7U enclosure. Combined with dual 40Gb/s InfiniBand, FCoE or 10GbE switches and dual 1/10GbE switches in one 7U enclosure, TwinBlade(TM) provides the highest performing I/O throughput and scalability in the industry and is a superb solution for high-performance computing (HPC), datacenter, enterprise and cloud computing environments, especially when powered by the new generation six-core Xeon processors.

　　Supermicro's new server and workstation system and motherboard platforms support the entire range of new six-core Intel(R) Xeon(R) Processor 5600/3600 Series, including the highest performance 130-watt SKUs. Consistent with the company's commitment to green computing, these new solutions support both standard 1.5V DDR3 memory modules and low-voltage 1.35V modules.

　　94%+* Supermicro Platinum-level power supplies with PM-Bus come standard on most of these new systems. In addition, Supermicro provides the ultimate in storage and networking flexibility with its Universal I/O (UIO) interface that allows customers to choose from a host of I/O cards including SAS 2.0, 10 Gb Ethernet, Fiber Channel and QDR/DDR InfiniBand subsystems.

　　Supermicro's industry-leading serverboards deliver optimum performance-per-dollar and robust remote management. These new platforms offer onboard IPMI 2.0 with media and KVM-over-LAN support as well as 10Gb Ethernet, high-performance 40Gb/s QDR and cost-effective DDR onboard InfiniBand versions for many of its serverboards, such as the X8DTT series for its popular multi-node 1U Twin(TM), 2U Twin and 2U Twin(2) servers.

　　Supermicro Server Building Block Solutions(R) offer exceptional flexibility and feature advantages. For more information on Supermicro's complete selection of server, workstation and blade solutions, visit http://www.supermicro.com .

　　About Super Micro Computer, Inc. (NASDAQ: SMCI) 

　　Supermicro, the leader in server technology innovation and green computing, provides customers around the world with application-optimized server, workstation, blade, storage and GPU systems. Based on its advanced Server Building Block Solutions, Supermicro offers the most optimized selection for IT, datacenter and HPC deployments. The company's system architecture innovations include the Twin server, double-sided storage and SuperBlade(R) product families. Offering the most comprehensive product lines in the industry, Supermicro provides businesses of all sizes with energy-efficient, earth-friendly solutions that deliver unmatched performance and value. Founded in 1993, Supermicro is headquartered in Silicon Valley with worldwide operations and manufacturing centers in Europe and Asia. For more information, visit http://www.supermicro.com .

　　SMCI-F

　　* Performance and peak power efficiency figures based on internal test results with DMIPS benchmark.

　　Supermicro, SuperBlade and Server Building Block Solutions are registered trademarks and TwinBlade, 1U Twin and 2U Twin(2) are trademarks of Super Micro Computer, Inc. All other trademarks are the property of their respective owners.]]></detail>
		<source><![CDATA[SOURCE  Super Micro Computer, Inc.]]></source>
	</item>

	<item>
		<link>http://www.prnasia.com/pr/10/03/100220011-1.html</link>
		<title>Orient Paper Begins Production of Digital Photo Paper</title>
		<author>PR Newswire Asia</author>
		
		<category>Manufacturing</category>
		
		<pubDate>Tue, 16 Mar 2010 21:29:00 +0800</pubDate>
		<guid>4028ee8c2766a90301276729c1430014</guid>
		<description><![CDATA[　　BAODING, China, March 16 /PRNewswire-Asia/ -- Orient Paper, Inc. (AMEX: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in Hebei, China, which controls and operates Hebei Baoding Orient Paper Milling Co., Ltd. ("HBOP") and its wholly-owned PRC subsidiary Baoding Shengde Paper Co., Ltd. ("Baoding Shengde"), today announced that its digital photo paper production line commenced production on March 10, 2010. 

　　Since the closing of the asset acquisition, Orient Paper has begun to renovate the digital photo paper production line. The Company started trial production at the beginning of March 2010 and has received positive market feedback. In the past week, the Company has already received orders from several customers such as Langfang Jinghua Paper Sales Company, a professional paper products distributor located in Langfang City, Hebei Province; Sanhe Hongkai Color Printing Company Limited, a color printing company located in Sanhe City, Hebei Province, and Beijing Chenguang Yuchen Advertising Company located in Beijing.

　　"We are pleased to announce the commencement of production of our digital photo paper product line as per schedule. The positive feedback received from our customers provides us a great deal of confidence and reflects favorable market acceptance," said Mr. Zhenyong Liu, Chairman and Chief Executive Officer. "The production of digital photo paper is in line with our strategy to focus on high-margin products and increasing the Company's profitability going forward. We are very optimistic about the growth potential of the digital photo paper segment and believe it will be a strong revenue contributor in 2010."

　　About Orient Paper, Inc.

　　Orient Paper, Inc., through its wholly owned subsidiaries, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd. ("Baoding Shengde"), and Hebei Baoding Orient Paper Milling Co., Ltd ("HBOP"). Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, writing paper, and other paper and packaging-related products in China. The Company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009 located in Baoding, is engaged in the production and distribution of digital photo paper. As one of the largest paper producers in Hebei Province, China, HBOP is strategically located in Baoding, a city in close proximity to Beijing where the majority of publishing houses are based. Orient Paper is led by an experienced management team committed to diversifying the Company's product offering and delivering tailored services to its customers. For more information, please visit http://www.orientalpapercorporation.com .
 
　　Safe Harbor Statement

　　This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, anticipated revenues from the digital photo paper business segment; the actions and initiatives of current and potential competitors; the Company's ability to introduce new products; market acceptance of new products; general economic and business conditions; the ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

　　For more information, please contact:

　　CCG Investor Relations
　　 Elaine Ketchmere, Partner
　　 Tel:   +1-310-954-1345
　　 Email: elaine.ketchmere@ccgir.com

　　 Crocker Coulson, President
　　 Tel:  +1-646-213-1915
　　 Email: crocker.coulson@ccgir.com
　　 Website: http://www.ccgirasia.com
　　　　　　
　　Orient Paper, Inc.
　　 Winston Yen, CFO
　　 Phone: +1-562-818-3817 (Los Angeles)
　　 Email: info@orientalpapercorporation.com]]></description>
		<detail><![CDATA[　　BAODING, China, March 16 /PRNewswire-Asia/ -- Orient Paper, Inc. (AMEX: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in Hebei, China, which controls and operates Hebei Baoding Orient Paper Milling Co., Ltd. ("HBOP") and its wholly-owned PRC subsidiary Baoding Shengde Paper Co., Ltd. ("Baoding Shengde"), today announced that its digital photo paper production line commenced production on March 10, 2010. 

　　Since the closing of the asset acquisition, Orient Paper has begun to renovate the digital photo paper production line. The Company started trial production at the beginning of March 2010 and has received positive market feedback. In the past week, the Company has already received orders from several customers such as Langfang Jinghua Paper Sales Company, a professional paper products distributor located in Langfang City, Hebei Province; Sanhe Hongkai Color Printing Company Limited, a color printing company located in Sanhe City, Hebei Province, and Beijing Chenguang Yuchen Advertising Company located in Beijing.

　　"We are pleased to announce the commencement of production of our digital photo paper product line as per schedule. The positive feedback received from our customers provides us a great deal of confidence and reflects favorable market acceptance," said Mr. Zhenyong Liu, Chairman and Chief Executive Officer. "The production of digital photo paper is in line with our strategy to focus on high-margin products and increasing the Company's profitability going forward. We are very optimistic about the growth potential of the digital photo paper segment and believe it will be a strong revenue contributor in 2010."

　　About Orient Paper, Inc.

　　Orient Paper, Inc., through its wholly owned subsidiaries, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd. ("Baoding Shengde"), and Hebei Baoding Orient Paper Milling Co., Ltd ("HBOP"). Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, writing paper, and other paper and packa