CHERRY HILL, N.J. — inTEST Corporation (Nasdaq: INTT), an independent designer, manufacturer and marketer of semiconductor automatic test equipment (ATE) interface solutions and temperature management products, today announced preliminary unaudited results for the quarter ended December 31, 2009.  The Company is releasing these preliminary results today due in part to inquiries from several shareholders requesting information prior to the Company’s planned release of final audited results in late March.  The news release announcing final audited results for the quarter and year ended December 31, 2009 is expected to be disseminated on Wednesday, March 24, 2010, after the market close, followed by the Company’s quarterly conference call with investors and analysts at 5:00 pm ET to discuss the Company’s results and management’s current expectations and views of the industry.  The call may also include discussions of strategic, operating, product initiatives or developments, or other matters relating to the Company’s current or future performance.

Net revenues for the quarter ended December 31, 2009 were $8.4 million, compared to $6.0 million for the third quarter of 2009.  Our net income for the quarter ended December 31, 2009 was $145,000 or $0.02 per diluted share, compared to a net loss of $(278,000) or $(0.03) per diluted share for the third quarter of 2009.  The net income for the fourth quarter included restructuring charges of $307, 000 or $0.03 per diluted share.  The net loss for the third quarter included restructuring charges of $(27,000) or $(0.00) per diluted share.  The restructuring charges recorded during the fourth quarter of 2009 were incurred by our Thermal Products segment and represent severance costs and facility closure costs related to the relocation of our Sigma Systems subsidiary.  The restructuring charges recorded during the third quarter of 2009 were incurred by our Mechanical Products segment and consist of facility closure costs for our Japanese subsidiary.

Bookings for the quarter ended December 31, 2009 were $9.4 million, an increase of 19% over the $7.9 million in bookings for the third quarter of 2009.

The preliminary results released today are unaudited and subject to change and do not reflect any asset impairment charges or other adjustments that may be proposed by the Company’s auditors.

The dial-in number for the live audio call beginning at 5 p.m. ET on March 24, 2010 is +1-201-689-8560 (international) or 1-877-407-0784 (domestic). A live web cast of the conference call will be available on inTEST’s website at www.intest.com. A replay of the call will be available 2 hours following the call through midnight on Wednesday, March 31, 2010 at www.intest.com and by telephone at +1-201-612-7415 (international) or 1-877-660-6853 (domestic).  The account number to access the replay is 3055 and the conference ID number is 342963.

About inTEST Corporation

inTEST Corporation is an independent designer, manufacturer and marketer of ATE interface solutions and temperature management products, which are used by semiconductor manufacturers to perform final testing of integrated circuits (ICs) and wafers. The Company’s high-performance products are designed to enable semiconductor manufacturers to improve the speed, reliability, efficiency and profitability of IC test processes. Specific products include positioner and docking hardware products, temperature management systems and customized interface solutions. The Company has established strong relationships with semiconductor manufacturers globally, which it supports through a network of local offices. For more information visit www.intest.com.

BERKELEY HEIGHTS, N.J., Feb. 17, 2010 (GLOBE NEWSWIRE) — Cyclacel Pharmaceuticals, Inc. (Nasdaq:CYCC) (Nasdaq:CYCCP) today announced that a newly published study demonstrates that the company’s seliciclib (CYC202 or R-roscovitine), an orally available inhibitor of multiple cyclin-dependent kinases (CDKs), reversed resistance to the aromatase inhibitor letrozole (Femara®) and killed hormone receptor positive breast cancer cells that had become insensitive to the effects of letrozole.  The new study was published in the current edition of Clinical Cancer Research, a journal of the American Association for Cancer Research.  Seliciclib is currently in Phase 2 clinical trials for non-small cell lung cancer and nasopharyngeal cancer.

“Resistance to aromatase inhibitors, such as letrozole, is a major challenge for the long-term management of hormone receptor positive breast cancer,” said Professor David Glover, Ph.D., Cyclacel’s Chief Scientist. “The data published in Clinical Cancer Research are encouraging as they show that seliciclib can kill resistant breast cancer cells by targeting a form of cyclin E that is a major cause of the resistance. This is further evidence that seliciclib’s unique mechanism of action can be effective against certain cancer cells, such as breast and lung cancer, that fail to respond to standard cancer treatments.”

Approximately 3 out of 4 women suffering from breast cancer after menopause have cancers that express the hormonal receptors for estrogen and progesterone and are offered treatment with aromatase inhibitor drugs including letrozole. Letrozole treatment reduces the risk of early metastasis in women with estrogen receptor–positive breast cancer. Letrozole is believed to interact with a natural CDK inhibitor  p27 which in turns regulates the activity of the CDK2/cyclin E complex. Over time, breast cancer cells develop resistance to letrozole and the therapy becomes ineffective.

Researchers from The University of Texas M.D. Anderson Cancer Center led by Khandan Keyomarsi, Ph.D., professor in the Department of Experimental Radiation Oncology, found that a key cause of resistance to letrozole is overexpression of the low molecular weight form of cyclin E, which also predicted for lower overall survival and higher chance of cancer recurrence after aromatase inhibitor treatment.  However, after they treated letrozole-resistant breast cancer cells with seliciclib, a CDK2/cyclin E inhibitor, the resistant cancer cells were killed. The researchers concluded that their data support clinical investigation of CDK inhibitors such as seliciclib as targeted therapy in a specific patient population of postmenopausal women with hormone receptor–positive, low molecular weight cyclin E expressing breast cancer. Citation: Akli S., et. al., Clinical Cancer Research, 2010 16:4:1179–90.

About seliciclib

Seliciclib is an orally available molecule that selectively inhibits multiple cyclin-dependent kinase or CDK targets, CDK2/E, CDK2/A, CDK7 and CDK9, that are central to the process of cell division and cell cycle control. Seliciclib has been administered to approximately 450 patients in Phase 1 and Phase 2 trials.  It is currently being evaluated in the APPRAISE trial, a Phase 2b randomized, double-blinded, placebo-controlled study, as a treatment in patients with non-small cell lung cancer (NSCLC) who failed at least two prior therapies and in a randomized Phase 2 study as a single agent in patients with nasopharyngeal cancer.

The APPRAISE trial is assessing the efficacy and safety of single-agent seliciclib as a third, fourth or fifth line treatment in patients with NSCLC.  The study is using a randomized discontinuation design with a primary endpoint of progression free survival.

About CDK2/cyclin E

Cyclin E, a cell cycle protein, binds to its partner enzyme CDK2, a cyclin-dependent kinase, forming a complex. The CDK2/cyclin E complex plays a key role in regulating the progression of cells through the four stages of the cell cycle and the two cell cycle arrest checkpoints where cells are checked for damage to their DNA before they divide. Unlike normal cells, cancer cells modify cyclin E to a low molecular weight form which has been associated with genomic instability, uncontrolled proliferation and overtime the evolution of resistance to cancer treatments.

About letrozole

Letrozole is an aromatase inhibitor indicated for the adjuvant treatment of postmenopausal women with hormone receptor positive early breast cancer, the first-line treatment of postmenopausal women with hormone receptor positive or hormone receptor unknown locally advanced or metastatic breast cancer and the treatment of advanced breast cancer in postmenopausal women with disease progression following antiestrogen therapy.

About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a biopharmaceutical company dedicated to the discovery, development and commercialization of novel, mechanism-targeted drugs to treat human cancers and other serious disorders.  Three orally-available Cyclacel drugs are in clinical development.  Sapacitabine (CYC682), a cell cycle modulating nucleoside analog, is in Phase 2 studies for the treatment of acute myeloid leukemia in the elderly, myelodysplastic syndromes and lung cancer.  Seliciclib (CYC202 or R-roscovitine), a CDK (cyclin dependent kinase) inhibitor, is in Phase 2 studies for the treatment of lung cancer and nasopharyngeal cancer and in a Phase 1 trial in combination with sapacitabine.  CYC116, an Aurora kinase and VEGFR2 inhibitor, is in a Phase 1 trial in patients with solid tumors.  Cyclacel’s ALIGN Pharmaceuticals subsidiary markets directly in the U.S. Xclair® Cream for radiation dermatitis, Numoisyn® Liquid and Numoisyn® Lozenges for xerostomia.  Cyclacel’s strategy is to build a diversified biopharmaceutical business focused in hematology and oncology based on a portfolio of commercial products and a development pipeline of novel drug candidates. Please visit www.cyclacel.com for additional information.

Risk factors

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding, among other things, the efficacy, safety, and intended utilization of Cyclacel’s product candidates, the conduct and results of future clinical trials, plans regarding regulatory filings, future research and clinical trials and plans regarding partnering activities. Factors that may cause actual results to differ materially include the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, the risk that Cyclacel will not obtain approval to market its products, the risks associated with reliance on outside financing to meet capital requirements, and the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking. These factors and others are more fully discussed under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2008, as supplemented by the interim quarterly reports, filed with the SEC.

HAYWARD, Calif. — Ultra Clean Holdings, Inc. (Nasdaq: UCTT) announced today that it has entered into an agreement with Orbotech Ltd. (Nasdaq: ORBK) under which Ultra Clean will provide manufacturing services to Orbotech at one of Ultra Clean’s two facilities in Shanghai.  Ultra Clean Microelectronics Equipment Co. Ltd (UCME), a subsidiary of UCTT, will assemble products from Orbotech’s Supervision range of high-speed automated optical inspection (AOI) systems for applications in the manufacture of flat panel display products. UCME already provides manufacturing services to Orbotech for its Array Checker flat panel display test systems and this latest agreement will significantly extend both the scope and scale of Ultra Clean’s support of the Orbotech Group in China.

Ultra Clean is a leading developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, energy, and medical device industries.  Orbotech is an industry leading designer, developer and manufacturer of yield-enhancing and production solutions for specialized applications in automated optical inspection (AOI), production and process control systems for printed circuit boards (PCBs); and AOI, test and repair systems for flat panel displays (FPDs).

“Ultra Clean has become an important manufacturing partner to Orbotech in our China operations.  By providing ongoing – and now extended – exceptional technical support, project management and turnkey manufacturing capabilities, Ultra Clean has enabled Orbotech to meet the increasingly demanding needs and expectations of our customers in Asia, and we look forward to its continuing to do so” said Reuven Losh, Orbotech’s Corporate Vice President and Co-President for Operations.

“We appreciate the continued trust that Orbotech has shown in Ultra Clean through this latest agreement and are very excited to be expanding our role as one of its outsource manufacturing partners in this rapidly growing market, ” said Clarence Granger, Ultra Clean’s chairman and CEO.

David Savage, Ultra Clean’s president and COO added “the systems we now build for Orbotech at UCME fit ideally with Ultra Clean’s core capabilities in assembly and test of highly complex, electromechanical equipment and with our strategic goal to partner with industry leading companies in high technology markets.”

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. is a developer and supplier of critical subsystems for the semiconductor capital equipment, medical device, research, flat panel and solar industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.

About Orbotech Ltd.

Orbotech is principally engaged in the design, development, manufacture, marketing and service of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. Orbotech’s products include automated optical inspection (AOI), production and process control systems for printed circuit boards (PCBs) and AOI, test and repair systems for flat panel displays (FPDs). The Company also markets computer-aided manufacturing (CAM) and engineering solutions for PCB production. In addition, through its subsidiary, Orbograph Ltd., the Company develops and markets character recognition solutions to banks and other financial institutions, and has developed a proprietary technology for web-based, location-independent data entry for check processing and forms processing; and, through its subsidiaries, Orbotech Medical Denmark A/S and Orbotech Medical Solutions Ltd., is engaged in the research and development, manufacture and sale of specialized products for application in medical nuclear imaging. Of Orbotech’s employees, more than one quarter are scientists and engineers, who integrate their multi-disciplinary knowledge, talents and skills to develop and provide sophisticated solutions and technologies designed to meet customers’ long-term needs. Orbotech maintains its headquarters and its primary research, development and manufacturing facilities in Israel, and more than 30 offices worldwide. Orbotech’s extensive network of marketing, sales and customer support teams throughout North America, Europe, the Pacific Rim, China and Japan deliver its knowledge and expertise directly to customers the world over. For more information visit www.orbotech.com.

Safe Harbor Statement

The foregoing information contains, or may be deemed to contain, “forward- looking statements” (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as “anticipates,” “believes,” “plan,” “expect,” “future,”‘ “intends,” “may,” “will,” “should,” “estimates,” “predicts,” “potential,” “continue” and similar expressions to identify these forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties. These risks, uncertainties and other factors include, among others, those identified in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our annual report on Form 10-K for the year ended January 2, 2009 and quarterly report on Form 10-Q for the quarter ended October 2, 2009, filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

SAN DIEGO — Sequenom, Inc. (Nasdaq: SQNM) today announced the launch of the SensiGene™ Fetal(XY) (Fetal Sex Determination) test by Sequenom’s CAP accredited and CLIA-certified laboratory, Sequenom Center for Molecular Medicine (Sequenom CMM). This is the company’s second laboratory developed test powered by its SEQureDx™ technology.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20040415/SQNMLOGO)

The benefits of the SensiGene Fetal(XY) Fetal Sex Determination test include:

• Noninvasive and safe. The test requires only a simple blood sample from the mother.
• Early detection – first trimester fetal sex determination.
• Highly specific – allows the distinction between maternal and fetal DNA for both male and female fetuses.
• Physician-ordered.

“The launch of the SensiGene Fetal(XY) test represents another successful noninvasive prenatal test demonstrating the utility of using maternal blood to determine fetal status,” said Lee P. Shulman, MD, Professor of Obstetrics and Gynecology and Chief of the Division of Clinical Genetics at the Feinberg School of Medicine at Northwestern University. “This is a great leap forward in delivering a test with a high degree of accuracy, using cutting-edge technology which has been rigorously evaluated through blinded studies, performed in collaboration with internationally recognized prenatal diagnosticians. This test adds to the physicians’ prenatal diagnostic arsenal by providing for safe and accurate noninvasive fetal testing.”

“I am very excited about the launch of the SensiGene Fetal(XY) test,” added Shawn M. Marcell, vice president, molecular diagnostics. “Being able to offer physicians an advanced molecular diagnostic test with excellent performance is an important step in helping their patients focus on the positive nature of their pregnancy. Offering this test through a physicians’ office should give mothers confidence in the test and assist doctors in the care of their patients.”

About the SensiGene Fetal(XY) (Fetal Sex Determination) Test

The new SensiGene Fetal(XY) test is designed to detect circulating cell-free fetal (ccff) DNA in maternal blood. The test interrogates male specific targets on the Y chromosome. In addition to quality control metrics to ensure accuracy it also incorporates a fetal identifier control to facilitate the distinction between maternal and female fetal DNA. The test is performed using Sequenom’s proprietary MassARRAY® system, which allows direct mass measurement of nucleic acids.

As with the recently launched SensiGene Fetal RHD Genotyping test, more than 500 clinical samples were tested during the course of feasibility, optimization, verification and validation. The final blinded validation study, in which over 200 samples were evaluated, was performed in conjunction with the Fetal Medicine Foundation, and un-blinding was performed by Dr. Arnold Cohen, chairman of obstetrics and gynecology at the Albert Einstein Medical Center, in Philadelphia. In this validation study the SensiGene Fetal Sex Determination test demonstrated:

• Sensitivity of 97.9% (92.5% – 99.4% at a 95% confidence interval).
• Specificity of 100% (96.9% – 100% at a 95% confidence interval).

More information on the SensiGene test and fetal sex determination can be found at http://www.scmmlab.com/Home/Health-Care-Professionals/Fetal-Sex-Determination.

Sequenom supports the ACOG Committee Opinion, No. 360. Obstet Gynecol 109: 475-478.

About MassARRAY Technology

Sequenom’s proprietary MassARRAY® system is a high performance matrix assisted laser desorption/ionization time-of-flight (MALDI-TOF) mass spectrometry-based nucleic acid analysis platform that quantitatively measures genetic target material and its variations in a rapid, accurate, and cost efficient manner. Sequenom’s MassARRAY system facilitates a number of nucleic acid analysis applications including SNP genotyping and allelotyping, CNV analysis, quantitative gene expression analysis, quantitative methylation marker analysis, comparative sequence analysis of haploid organisms, SNP discovery, and oligonucleotide quality control.

About Sequenom Center for Molecular Medicine

Sequenom Center for Molecular Medicine® (Sequenom CMM), a CAP accredited and CLIA-certified molecular diagnostics laboratory, is developing a full range of advanced prenatal diagnostics. Branded under the name SensiGene™, these genetic tests provide earlier patient management alternatives for obstetricians, geneticists and maternal fetal medicine specialists. Sequenom CMM is changing the landscape in genetic disorder diagnostics using proprietary cutting edge technologies. Visit http://www.scmmlab.com for more information on laboratory services.

About Sequenom

Sequenom, Inc. (NASDAQ: SQNM) is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery & clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. Sequenom maintains a Web site at http://www.sequenom.com to which Sequenom regularly posts copies of its press releases as well as additional information about Sequenom. Interested persons can subscribe on the Sequenom Web site to email alerts or RSS feeds that are sent automatically when Sequenom issues press releases, files its reports with the Securities and Exchange Commission or posts certain other information to the Web site.

Sequenom®, Sequenom® Center for Molecular Medicine®, SEQureDx™, SensiGene™, and MassARRAY® are trademarks of Sequenom, Inc. All other trademarks and service marks are the property of their respective owners.

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the anticipated performance and benefits of the SensiGene Fetal(XY) sex determination test and its acceptance and use by physicians, and development of a full range of advanced prenatal diagnostics by Sequenom CMM, are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties associated with market demand for and acceptance and use by customers of new laboratory developed tests such as the SensiGene Fetal(XY)  sex determination test, ongoing litigation and investigations involving the Company, the Company’s financial position, its ability to position itself for product launches and growth and develop and commercialize new technologies and products, particularly new technologies such as noninvasive prenatal diagnostics, laboratory developed tests, and genetic analysis platforms, reliance upon the collaborative efforts of other parties, the Company’s ability to manage its existing cash resources or raise additional cash resources, competition, intellectual property protection and intellectual property rights of others, government regulation particularly with respect to diagnostic products and laboratory developed tests, obtaining or maintaining regulatory approvals, and other risks detailed from time to time in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 and other documents subsequently filed with or furnished to the Securities and Exchange Commission. These forward-looking statements are based on current information that may change and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.

SHANGHAI — China Precision Steel, Inc. (Nasdaq: CPSL) (“China Precision Steel” or the “Company”), a niche precision steel processing Company principally engaged in producing and selling high precision, cold-rolled steel products, announced today its fiscal 2010 second quarter results for the period ended December 31, 2009.

    Second Quarter Highlights
    -- Revenue increased 53.7% year-over-year to $27.0 million
    -- Gross profit was $3.6 million with 13.5% gross margin
    -- Net income was $2.6 million, versus a net loss of $2.0 million in
       second quarter 2009
    -- Fully diluted earnings per share were $0.06

“We are very pleased with our results for the second quarter. During the quarter, we experienced a significant increase in demand from our current customers along with a ramp up of orders from new customers. Specifically, our sales volumes benefited from an increase in the domestic demand for home appliances and automobile components as a result of China’s economic stimulus programs which drove orders for both our low and high carbon precision steel products,” commented Dr. Wo Hing Li, China Precision Steel’s Chairman and CEO. “Additionally, we are experiencing a rebound in international sales as our customers’ businesses appear to be recovering from the impact of the economic crisis.”

Revenue for the second quarter of fiscal 2010 was $27.0 million, up 53.7% from revenue in the second quarter of fiscal 2009 of $17.6 million. The increase in revenue was mainly attributed to the increase in sales volume which offset a decline in average selling price. Total sales volume in the second quarter was 35,588 tons, up 139.5% from total sales volume of 14,862 in the second quarter of 2009. Sales volume increased 59.6% from 22,293 tons in the first quarter of fiscal 2010. Average selling price per ton was $759, down 35.8% from $1,182 in the second quarter of fiscal 2009. The decline in average selling price parallels the overall decline in global steel prices. High carbon and low carbon sales accounted for 32.0% and 54.9% of total sales, respectively, compared to 6.1% and 87.3%, respectively, in the second quarter of fiscal 2009. Exports represented 13.0% of total sales for the quarter.

Gross profit in the second quarter was $3.6 million, up 5.3% from gross profit in the same period a year ago of $3.5 million. Gross margin was 13.5% compared to 19.6% in the second quarter of fiscal 2009. The decline in gross margin was mainly due to decrease in average selling prices, which was partially offset by decrease in average cost per unit sold period-on-period.

Selling expenses for the second quarter of fiscal 2010 were $70,605, or 0.3% of revenue, compared to $1.1 million, or 6.4% of revenue, in the second fiscal quarter of fiscal 2009. The decline in selling expenses was primarily attributable to higher commission costs associated with export products in the second quarter of fiscal 2009. Administrative expenses were $654,041, or 2.4% of revenue, compared to $578,105, or 3.3% of revenue in second quarter of fiscal 2009. The increase in administrative expenses is due to an increase in salaries as a result of an increase in the average number of staff as well as an increase in stock and listing fees and travel expenses period-on-period. China Precision Steel also recognized an allowance for bad and doubtful debts in the amount of $101,067 during the quarter in accordance with its policy for allowance for bad and doubtful debts, as compared to $3.8 million for the same period a year ago.

Operating income for the quarter was $2.8 million, compared to operating loss of $2.1 million in the second quarter of fiscal 2009.

Net income for the second quarter of fiscal 2010 was $2.6 million, compared to net loss of $2.0 million for the second quarter of fiscal 2009. Fully diluted earnings per share were $0.06 compared to fully diluted loss per share of $0.04 in the same period a year ago.

Six Months Financial Results

Revenue for the first six months of fiscal 2010 was $44.0 million, up 2.6% from $42.9 million in the same period a year ago. Gross profit was $4.3 million, down 41.4% from gross profit of $7.4 million for the six months of fiscal 2009. Gross margin was 9.8% compared to 17.2% for the comparable period a year ago. Operating income was $2.7 million, up 137.1% from $1.1 million in the first six months of fiscal 2009. Net income was $2.3 million, up 156.9% from $0.9 million in the same period a year ago. Fully diluted earnings per share were $0.05 compared to $0.02 in the first six months of fiscal 2009.

Financial Condition

As of December 31, 2009, China Precision Steel had $12.8 million in cash and cash equivalents, no long-term debt, total liabilities of $42.8 million and working capital of $42.5 million. Net cash provided by operating activities for the first six months of fiscal 2010 was $0.6 million. Stockholders’ equity stood at $123.0 million compared to $120.6 million as of June 30, 2009.

Subsequent Events

On January 29, 2010, China Precision Steel’s subsidiary, Shanghai Blessford, entered into a Senior Loan Agreement with DEG-Deutsche Investitions-Und Entwicklungsgesellschaft Mbh (“DEG”) for a loan amount up to $18,000,000 at an annual interest rate of 4.5% above the six-month USD LIBOR rate. The loan is to be repaid semi-annually over five years starting on December 15, 2011 and is secured on a mortgage of the new cold rolling line and annealing furnaces at Shanghai Blessford’s facilities.

Business Outlook

China Precision Steel began initial production runs at its new mill in January 2010, and is currently in the process of ramping up production capacity. The mill is expected to reach its full design capacity of 100,000 tons in approximately four years; increasing the Company’s total production design capacity by 33%. China Precision Steel expects to incur an additional $900,000 in capital expenditure for the completion of the new mill and annealing furnaces.

“We are optimistic that market activity will improve throughout the first half of 2010 because our business has been gradually stabilizing and our visibility on customer orders has improved considerably. As of December 31, 2009, we had a backlog of $23.9 million in orders that are to be delivered over the next three to four months and we anticipate our monthly production will be approximately 10,000 tons,” Dr. Li commented. “Moreover, we have liquidated our higher cost inventory and strengthened our balance sheet which gives us flexibility to rapidly respond to changing market conditions.”

About China Precision Steel, Inc.

China Precision Steel, Inc. is a niche precision steel processing company principally engaged in the production and sale of high precision cold-rolled steel products and provides value added services such as heat treatment and cutting medium and high carbon hot-rolled steel strips. China Precision Steel’s high precision, ultra-thin, high strength (7.5 mm to 0.05 mm) cold- rolled steel products are mainly used in the production of automotive components, food packaging materials, saw blades and textile needles. The Company primarily sells to manufacturers in the People’s Republic of China and overseas markets such as Nigeria, Thailand, Indonesia and the Philippines. China Precision Steel was incorporated in 2002 and is headquartered in Sheung Wan, Hong Kong. Additional information can be found at the Company’s website http://chinaprecisionsteelinc.com .

Conference Call

China Precision Steel will host a conference call on Tuesday, February 16, 2010 at 9:00 a.m. Eastern Time to discuss fiscal 2010 second quarter results. To participate in the live conference call, please dial the following number fifteen minutes prior to the scheduled conference call time: 888-339-2688. International callers should dial 617-847-3007. When prompted by the operator, mention conference passcode 493 644 31.

If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Tuesday, February 16, 2010 at 11:00 a.m. Eastern Time. To access the replay, dial 888-286-8010 and enter the passcode 20808534. International callers should dial 617-801-6888 and enter the same passcode.

This conference call will be broadcast live over the Internet and can be accessed by all interested parties by clicking on http://www.chinaprecisionsteelinc.com . Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a 90-day replay will be available shortly after the call by accessing the same link.

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Precision Steel 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. These statements include, without limitation, statements regarding China Precision Steel’s ability to prepare the Company for growth, the Company’s planned manufacturing capacity expansion, predictions about improvements in the global economy and predictions and guidance relating to the Company’s future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, such as business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which China Precision Steel is engaged; cyclicality of steel consumption including overcapacity and decline in steel prices, limited availability of raw material and energy may constrain operating levels and reduce profit margins, environmental compliance and remediation could result in increased cost of capital as well as other relevant risks not included herein. The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

                         - Financial Tables Follow -

         China Precision Steel, Inc.
              and Subsidiaries
         Consolidated Balance Sheets
                                           (Unaudited)
                                           December 31,            June 30,
                                               2009                  2009
                     Assets
    Current assets
      Cash and cash equivalents           $12,752,288            $13,649,587
      Accounts receivable
        Trade, net of allowances of
         $1,006,973 and $830,127
         at December 31 and June 30,
         2009, respectively                23,524,856             25,140,834
        Bills receivable                      317,391              6,131,143
        Other                                 920,274                881,153
      Inventories                          25,149,536             16,275,070
      Prepaid expenses                        161,427                 75,917
      Advances to suppliers, net of
       allowance of $1,632,442 and
       $1,631,557 at December 31 and
       June 30, 2009, respectively         22,491,830             21,878,047
    Total current assets                   85,317,602             84,031,751
    Property, plant and equipment
      Property, plant and equipment,
       net                                 72,880,841             46,812,484
      Deposits for building, plant
       and machinery                               --              8,348,496
      Construction-in-progress              5,656,934             22,245,173
                                           78,537,775             77,406,153
    Intangible assets, net                  1,852,015              1,871,211
    Goodwill                                   99,999                 99,999
    Total assets                         $165,807,391           $163,409,114

        Liabilities and Stockholders'
         Equity
    Current liabilities
      Short-term loans                    $25,791,988            $22,489,031
      Accounts payable and accrued
       liabilities                          6,346,626              7,144,242
      Advances from customers               2,786,380              1,742,944
      Other taxes payables                  2,921,706              6,650,668
      Current income taxes payable          4,978,877              4,778,767
    Total current liabilities              42,825,577             42,805,652
    Stockholders' equity:
      Preferred stock: $0.001 per
       value, 8,000,000 shares
       authorized, no shares
       outstanding at December 31
       and June 30, 2009, respectively             --                     --
      Common stock: $0.001 par value,
       62,000,000 shares
       authorized, 46,562,955 and
       46,562,955 issued and
       outstanding December 31 and
       June 30, 2009, respectively             46,563                 46,563
      Additional paid-in capital           75,642,383             75,642,383
      Accumulated other comprehensive
       income                               9,795,611              9,731,505
      Retained earnings                    37,497,257             35,183,011
    Total stockholders' equity            122,981,814            120,603,462
    Total liabilities and
     stockholders' equity                $165,807,391           $163,409,114

                  China Precision Steel, Inc. and Subsidiaries
                      Consolidated Statements of Operations
          For the Three and Six Months Ended December 31, 2009 and 2008
                                   (Unaudited)

                             Three Months Ended          Six Months Ended
                            December    December      December       December
                                31,        31,           31,            31,
                               2009       2008          2009           2008

    Revenues
      Sales revenues     $27,013,838   $17,573,959   $44,055,827   $42,924,378
      Cost of goods
       sold               23,377,883    14,122,622    39,716,513    35,520,383
      Gross profit         3,635,955     3,451,337     4,339,314     7,403,995

    Operating expenses
      Selling expenses        70,605     1,122,532      102,414      1,333,830
      Administrative
       expenses              654,041       578,105    1,232,739      1,040,205
      Allowance for bad
       and doubtful
       debts                 101,067     3,829,462      218,184      3,829,462
      Depreciation and
       amortization
       expense                36,755        33,318       80,493         59,521
      Total operating
       expenses              862,468     5,563,417    1,633,830      6,263,018

    Income/(loss) from
     operations            2,773,487    (2,112,080)   2,705,484      1,140,977

    Other
     income/(expense)
      Other revenues          91,041       138,998      110,963        259,701
      Interest and
       finance costs        (275,091)     (320,777)    (503,434)      (648,182)

     Total other
     (expense)              (184,050)     (181,779)    (392,471)      (388,481)

    Net income/(loss)
     from operations
     before income
      tax                  2,589,437    (2,293,859)   2,313,013        752,496

    Provision
     for/(benefit
     from) income tax
      Current                     --      (318,878)      (1,233)      (148,257)
      Deferred                    --            --           --             --
      Total income tax
       (benefit)                  --      (318,878)      (1,233)      (148,257)

    Net income/(loss)     $2,589,437   ($1,974,981)  $2,314,246       $900,753

    Basic
     earnings/(loss)
     per share                 $0.06        ($0.04)       $0.05          $0.02
    Basic weighted
     average shares
     outstanding          46,562,955    46,562,955   46,562,955     46,559,531
    Diluted
     earnings/(loss)
     per share                 $0.06        ($0.04)       $0.05          $0.02
    Diluted weighted
     average shares
     outstanding          46,562,955    46,562,955   46,562,955     46,566,423

                   China Precision Steel, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows
               For the Six Months Ended December 31, 2009 and 2008
                                   (Unaudited)
                                                       2009             2008
    Cash flows from operating activities
      Net income                                  2,314,246          900,753
      Adjustments to reconcile net income to
       net cash provided by operating
       activities
        Depreciation and amortization             2,181,380        1,825,544
        Allowance for bad and doubtful debts        218,184        3,829,462
        Inventory impairment                         42,534               --
      Net changes in assets and liabilities:
        Accounts receivable, net                  7,189,783        3,801,518
        Inventories                              (8,908,192)        (461,094)
        Prepaid expenses                            (85,504)         (50,382)
        Advances to suppliers                      (601,926)       2,890,245
        Accounts payable and accrued expenses      (801,406)        (147,831)
        Advances from customers                   1,042,492       (3,006,670)
        Other taxes payable                      (2,236,478)        (426,823)
        Current income taxes                        197,520         (491,584)
    Net cash provided by operating activities       552,633        8,663,138

    Cash flows from investing activities
      Purchase of property, plant and
       equipment including construction in
       progress                                  (4,746,139)     (12,954,497)

    Net cash (used in) investing activities      (4,746,139)     (12,954,497)

    Cash flows from financing activities
      Exercise of common stock warrants                  --          269,985
      Short-term loan proceeds                    3,735,169               --
      Repayments of short-term loans               (444,400)         (87,690)
    Net cash provided by financing activities     3,290,769          182,295

    Effect of exchange rate                           5,438          303,887
    Net (decrease) in cash                         (897,299)      (3,805,177)
    Cash and cash equivalents, beginning of
     period                                      13,649,587       18,568,842
    Cash and cash equivalents, end of period     12,752,288       14,763,665

MOUNTAIN VIEW, Calif. — Geeknet, Inc. (Nasdaq: LNUX), the online network for the global geek community, today announced financial results for its fourth quarter and year ended December 31, 2009.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20091104/SF04925LOGO)

Total revenue for the fourth quarter of 2009 was $32.6 million compared to $24.8 million of revenue for the fourth quarter of 2008.  Net income for the fourth quarter of 2009 was $1.5 million or $0.03 per share compared to a net income of $2.6 million or $0.04 per share, for the same period a year ago.

Adjusted EBITDA for the fourth quarter of 2009 was $2.8 million, compared to adjusted EBITDA of $2.6 million for the same period a year ago.  A reconciliation of our net income as reported to adjusted EBITDA is included in this release.

“Geeknet closed the year with a solid fourth quarter as we realized some of the benefits associated with our numerous investments in 2009,” said Scott L. Kauffman, President and CEO, Geeknet.  “In particular, ThinkGeek delivered record revenues driven by an increased focus on marketing and awareness.  The fourth quarter results validate my belief that our strategy to reinvigorate the company is gaining traction with both our consumers and our advertisers.  We expect these trends to continue in 2010.”

Revenue for the twelve months ended December 31, 2009 was $65.6 million compared to $59.4 million for the comparable period in 2008.  Net loss for the twelve months ended December 31, 2009 was $14.0 million or $0.23 per share compared to a net loss of $4.8 million or $0.07 per share for the comparable period a year ago.  Net loss for the year ended December 31, 2009 includes a $1.2 million loss resulting from the write-off of internally developed software and a $4.6 million impairment charge for the Company’s investment in CollabNet.  Adjusted EBITDA for the twelve months ended December 31, 2009 was $3.6 million loss compared to adjusted EBITDA of $0.2 million for the comparable period a year ago.

Fourth Quarter Highlights:

• Media revenue was $4.7 million for the fourth quarter of 2009, compared to $5.1 million for the fourth quarter of 2008.  Revenue for the fourth quarter of 2009 included $2.3 million from our premium advertising products compared to $1.1 million of revenue from premium advertising products for the same period last year.
• E-commerce revenue increased 42 percent to $27.9 million for the fourth quarter of 2009, compared to $19.7 million for the fourth quarter of 2008.
• Total cash and investments, including restricted cash, at the end of 2009 was $39.4 million.

Supplemental schedules of the Company’s quarterly statements of operations and operational statistics for the quarterly periods in the years ended December 31, 2008 and December 31, 2009 are available on the Company’s web site at geek.net/cyresults.

A conference call and audio webcast will be held at 8:00 a.m. PT or 11:00 a.m. ET on February 11, 2010 and may be accessed by calling 877-407-8033 or 201-689-8033 or by visiting geek.net.  Replays of both the telephonic audio and audio webcast will be available for 90 days.  To access the conference call replay, dial 877-660-6853 or 201-612-7415, referencing replay account 286 and call ID 342802.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, we also report adjusted EBITDA.  Adjusted EBITDA 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.  We believe that adjusted EBITDA provides useful information to both management and investors and is an additional measurement which may be used to evaluate our operating performance.  Our management and Board of Directors use adjusted EBITDA as part of their reporting and planning process and it is the primary measure we use to evaluate our operating performance.  In addition, we have historically reported Adjusted EBITDA or non-GAAP earnings, from which adjusted EBITDA can be derived, to the investment community.  We also believe that the financial analysts who regularly follow and report on us and the business sector in which we compete use adjusted EBITDA to prepare their financial performance estimates to measure our performance against other sector participants and to project our future financial results.

We define adjusted EBITDA as net loss which is adjusted for interest and other income (expense) net and income taxes as well as stock-based compensation, restructuring charges and depreciation and amortization.  The method we use to produce adjusted EBITDA is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a substitute for results prepared in accordance with accounting principles generally accepted in the United States.  Adjusted EBITDA, as we compute it, excludes certain expenses that we believe are not indicative of our core operating results, as well as income taxes, stock-based compensation and depreciation and amortization.  We consider our core operating results to include revenue recorded in a particular period and the related expenses that are intended to directly drive operating income during that period.

The EBITDA calculation excludes interest, income taxes and depreciation and amortization by its nature.  In addition, when we compute adjusted EBITDA we exclude stock-based compensation and restructuring charges and other amounts included in the Interest income and other income (expense) net caption as we believe that these amounts represent income and expenses that are not directly related to our core operations.  Although some of the items may recur on a regular basis, management does not consider activities associated with these items as core to its operations.  With respect to stock-based compensation, we recognize expenses associated with stock-based compensation that require management to make assumptions about our common stock, such as expected future stock price volatility, the anticipated duration of outstanding stock options and awards and the rate at which we recognize the corresponding stock-based compensation expense over the course of future fiscal periods.  While other forms of expenses (such as cash compensation, inventory costs and real estate costs) are reasonably correlated to our underlying business and such costs are incurred principally or wholly in the particular fiscal period being reported, stock-based compensation expense is not reasonably correlated to the particular fiscal period in question, but rather is based on expected future events that have no relationship (and in certain instances, an inverse relationship) with how well we currently operate our business.  Restructuring costs are excluded from adjusted EBITDA because they represent non-cash charges which are not representative of our core operations.

About Geeknet, Inc.

Geeknet is the online network for the global geek community.  Our sites include: SourceForge, Slashdot, ThinkGeek, Ohloh and freshmeat.  We serve an audience of more than 40 million users* each month and provide the tech-obsessed with content, culture, connections, commerce, and all the things that geeks crave.  Want to learn more?  Check out geek.net.

*(Source: Google Analytics and Omniture – December 2009)

Geeknet is a trademark of Geeknet, Inc.  SourceForge, Slashdot, ThinkGeek, Ohloh, and freshmeat are registered trademarks of Geeknet, Inc. in the United States and other countries.  All other trademarks or product names are property of their respective owners.

NOTE REGARDING FORWARD-LOOKING STATEMENTS:  This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based on our current expectations, and involve risks and uncertainties.  Forward-looking statements contained herein include statements regarding our growth strategies and prospects for our online media and e-commerce businesses.  Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including:  our ability to attract and retain qualified personnel; success in designing and offering innovative online advertising programs; decreases or delays in online advertising spending, especially in light of current macroeconomic challenges and uncertainty; our effectiveness at planning and managing our e-commerce inventory; our ability to achieve and sustain higher levels of revenue; our ability to protect and defend our intellectual property rights; rapid technological and market change; unforeseen expenses that we may incur in future quarters; and competition with, and pricing pressures from larger and/or more established competitors.  Investors should consult our filings with the Securities and Exchange Commission, sec.gov, including the risk factors section of our Annual Report on Form 10-K for the year ended July 31, 2008, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, for further information regarding these and other risks of our business.  All forward-looking statements included in this press release are based upon information available to us as of the date hereof, and we do not assume any obligations to update such statements or the reasons why actual results could differ materially from those projected in such statements.

                                  Geeknet, Inc.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)                  

                                            Three Months
                                               Ended            Year Ended
                                            December 31,       December 31,
                                           -------------      -------------
                                            2009    2008      2009     2008
                                            ----    ----      ----     ----
     Media revenue                         $4,685  $5,123   $16,486  $19,781
     E-commerce revenue                    27,949  19,666    49,091   39,666
                                           ------  ------    ------   ------
       Net revenue                         32,634  24,789    65,577   59,447
                                           ------  ------    ------   ------ 

     Media cost of revenue                  1,698   2,163     6,953    8,224
     E-commerce cost of revenue            20,336  14,969    38,151   31,053
                                           ------  ------    ------   ------
      Cost of revenue                      22,034  17,132    45,104   39,277
                                           ------  ------    ------   ------
      Gross margin                         10,600   7,657    20,473   20,170
                                           ------   -----    ------   ------ 

    Operating expenses:
      Sales and marketing                   4,307   2,872    11,775    9,390
      Research and development              2,287   1,572     8,103    5,426
      General and administrative            2,256   2,118     8,843   11,136
      Amortization of intangible assets        90       -       200        -
      Restructuring costs                     (62)      -       (62)     765
                                              ---     ---       ---      ---
        Total operating expenses            8,878   6,562    28,859   26,717
                                            -----   -----    ------   ------
    Operating income (loss)                 1,722   1,095    (8,386)  (6,547)
    Interest and other income
     (expense), net                            48   1,652    (5,495)   1,849
                                              ---   -----    ------    -----
    Income (loss) before income taxes       1,770   2,747   (13,881)  (4,698)
    Provision for income taxes                242     195       140       83
                                              ---     ---       ---      ---
        Net income (loss)                  $1,528  $2,552  $(14,021) $(4,781)
                                           ======  ======  ========  ======= 

    Earnings per share:
      Basic and diluted                     $0.03   $0.04    $(0.23)  $(0.07)
                                            =====   =====    ======   ====== 

    Shares used in computing earnings
     per share:
      Basic                                60,086  65,750    60,801   67,469
                                           ======  ======    ======   ======
      Diluted                              60,733  65,790    60,801   67,469
                                           ======  ======    ======   ====== 

    Reconciliation of net income (loss) as
     reported to adjusted EBITDA:
    Net income (loss) - as reported        $1,528  $2,552  $(14,021) $(4,781)
    Reconciling items:
      Interest and other income
       (expense), net                         (48) (1,652)    5,495   (1,849)
      Provision for income taxes              242     195       140       83
      Stock-based compensation expense
       included in COGS                        74      92       319      297
      Stock-based compensation expense
       included in Op Ex.                     568     817     2,332    3,593
      Restructuring costs                     (62)      -       (62)     765
      Depreciation and amortization           520     588     2,157    2,088
                                              ---     ---     -----    -----
    Adjusted EBITDA                        $2,822  $2,592   $(3,640)    $196
                                           ======  ======   =======     ==== 

                                 Geeknet, Inc.
                     CONDENSED CONSOLIDATED BALANCE SHEET
                                (In thousands)                            

                                             December 31,        December 31,
                                                2009                 2008
                                             ------------        ------------
                 ASSETS                                                   

    Current assets:
      Cash and cash equivalents                $28,943            $40,511
      Short-term investments,
       including restricted cash                10,408                563
      Accounts receivable, net                   4,299              4,418
      Inventories                                5,280              3,264
      Prepaid expenses and other
       current assets                            3,564              1,841
                                                 -----              -----
        Total current assets                    52,494             50,597
    Property and equipment, net                  2,569              4,748
    Long-term investments, including
     long-term restricted cash                       -              9,947
    Other long-term assets                       5,088              8,874
                                                 -----              -----
    Total assets                               $60,151            $74,166
                                               =======            ======= 

        LIABILITIES AND STOCKHOLDERS' EQUITY                        

    Current liabilities:
      Accounts payable                          $5,763             $4,021
      Accrued restructuring liabilities          1,238              2,862
      Deferred revenue                             928                591
      Accrued liabilities and other              3,854              2,702
                                                 -----              -----
        Total current liabilities               11,783             10,176
    Other long-term liabilities                    103              1,423
                                                   ---              -----
    Total liabilities                           11,886             11,599
                                                ------             ------ 

    Stockholders' equity:
      Common stock                                  61                 65
      Treasury stock                              (492)              (331)
      Additional paid-in capital               798,917            799,037
      Accumulated other comprehensive income        13                  9
      Accumulated deficit                     (750,234)          (736,213)
                                              --------           --------
        Total stockholders' equity              48,265             62,567
                                                ------             ------
    Total liabilities and
     stockholders' equity                      $60,151            $74,166
                                               =======            ======= 

                                   Geeknet, Inc.
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (In thousands)

                                           Three months
                                              ended           Year ended
                                           December 31,       December 31,
                                           ------------       ------------
                                          2009     2008      2009     2008
                                          ----     ----      ----     ----
    Cash flows from operating
     activities:
      Net income (loss)                 $1,528   $2,552  $(14,021) $(4,781)
      Adjustments to reconcile net
       income (loss) to net cash
       provided by (used in)
       operating activities:
        Depreciation and amortization      520      588     2,157    2,088
        Stock-based compensation expense   642      909     2,651    3,890
        Provision for bad debts            (51)     (52)       46       28
        Provision for excess and
         obsolete inventory                (17)     (99)       17        4
        Provision for return for
         allowance                         258      167       258      167
        (Gain) loss on disposal of
         assets                              -     (548)    1,020     (545)
        Loss on sale of investments          -        -         -      308
        Change in fair value of
         financial assets                    -     (601)        -     (601)
        Impairment of investments            -        -     4,585      108
        Non-cash restructuring
         expense                           (62)       -       (62)     765
        Changes in assets and
         liabilities:
          Accounts receivable           (1,157)      75        78     (668)
          Inventories                     (395)     799    (2,033)     201
          Prepaid expenses and other
           assets                          370    1,149      (471)    (187)
          Accounts payable               1,751    1,319     1,735     (500)
          Accrued restructuring
           liabilities                    (727)    (681)   (2,816)  (2,831)
          Deferred revenue                 158      (97)      337     (186)
          Accrued liabilities and
           other                         1,270      132       858      167
          Other long-term liabilities      (94)       4       (66)      18
                                           ---      ---       ---      ---
            Net cash provided by
             (used in) operating
             activities                  3,994    5,616    (5,727)  (2,555)
                                         -----    -----    ------   ------ 

    Cash flows from investing
     activities:
      Purchase of property and
       equipment                          (263)    (667)   (1,001)  (2,569)
      Purchases of marketable
       securities                            -     (430)        -  (26,871)
      Maturities or sale of
       marketable securities               100      935       659   50,861
      Acquisitions                           -        -    (2,613)       -
      Proceeds from sale of
       intangible assets, net                -        -       172        -
      Purchases of intangible assets       (16)       -      (122)       -
                                           ---      ---      ----      ---
        Net cash (used in)
         provided by investing
         activities                       (179)    (162)   (2,905)  21,421
                                          ----     ----    ------   ------ 

    Cash flows from financing
     activities:
      Proceeds from issuance
       of common stock                       -        -       259       18
      Repurchase of common stock             -   (3,210)   (3,195)  (3,452)
                                           ---   ------    ------   ------
            Net cash used in
             financing activities            -   (3,210)   (2,936)  (3,434)
                                           ---   ------    ------   ------ 

    Cash flows from
     discontinued operations:
      Net cash provided by
       operating activities                  -        -         -       42
                                           ---      ---       ---      ---
            Net cash provided by
             discontinued operations         -        -         -       42
                                           ---      ---       ---      ---
    Net increase (decrease)
     in cash and cash
     equivalents                         3,815    2,244   (11,568)  15,474
                                         -----    -----   -------   ------
    Cash and cash equivalents,
     beginning of period                25,128   38,267    40,511   25,037
                                        ------   ------    ------   ------
    Cash and cash equivalents,
     end of period                     $28,943  $40,511   $28,943  $40,511
                                       =======  =======   =======  =======

SHENZHEN, China — Winner Medical Group Inc. (NYSE Amex: WWIN; “Winner Medical”), a manufacturer of medical dressings, medical disposables and non-woven PurCotton(R) materials for the medical and consumer products industries, today reported that fiscal first quarter 2010 revenue increased 15.8% to $29.8 million and diluted earnings per share increased 142.9% to $0.17.

    First Quarter 2010 Summary

                                          Q1 FY2010        Q1 FY2009    Y/Y
                                         (In million)    (In million)
    Sales Revenue                            $29.8           $25.7     15.8%
    Cost of Sales                            $20.4           $19.1      6.4%
    Gross Profit                              $9.4            $6.6     42.8%
    Operating Income                          $4.5            $1.7    159.4%
    Net Income Attributable to
     Winner Medical Group Inc.                $3.9            $1.5    165.8%
    Diluted EPS                              $0.17           $0.07    142.9%

“Winner Medical delivered strong first-quarter results as our operating numbers were enhanced by accelerating growth in the Chinese market for our Winner(R) brand and finished medical products, which were further supported by sequential increases by PurCotton(R) jumbo roll sales,” said Jianquan Li, chairman and Chief Executive Officer of Winner Medical. “Our business is performing well and our domestic and PurCotton(R) business is on track for strong profit growth this quarter.”

“Looking forward, we will continue to reshape and strengthen our portfolio, by expanding medical products sales into the Chinese marketplace through direct sales to hospitals, distributors and chain drugstores, and launching PurCotton(R) brand products and opening more PurCotton(R) trial stores. We expect that these products and sales to the Chinese marketplace will fuel our growth in an increasingly competitive marketplace. We also expect to drive growth this year through key strategic investments funded by our continued strong cash flow,” Mr. Li said.

First Quarter 2010 Highlights

Sales Revenue

Winner Medical reported net revenues of $29.8 million for the first quarter of 2010, a 15.8% increase from $25.7 million in the first quarter of 2009. Net revenues generated from traditional products in the first quarter of 2010 increased approximately 9.5% to $27.3 million from $24.9 million in the first quarter of 2009, primarily driven by increased sales to North and South American customers and Chinese customers. As a component, PurCotton(R) products sales in the first quarter of 2010 increased approximately 199.2% to $2.5 million from $0.8 million in the first quarter of 2009. The strong revenue was also driven by a large quantity of sales from face masks and protective products as a result of H1N1 both in the Chinese and global markets.

Gross Profit

Gross profit in the first quarter of 2010 increased to $9.4 million. First quarter 2010 gross margins were 31.7%, a 600 basis point improvement from 25.7% reported in the first quarter of 2009, which resulted from the Company’s strategy of targeting the Chinese medical market combined with high margin sales of PurCottton(R) products, as well as from benefits derived from our lean production management and favorable foreign exchange rates.

Operating Expenses

In the first quarter of 2010, the Company reported Selling, General and Administrative expenses of $5.3 million, versus $4.5 million in the first quarter of 2009. This increase was mainly due to increases in transportation expenses for the domestic and export markets, increases in salaries for management and administrative staff and consulting expenses for brand building projects, as well as an increase in the provision for bad debts.

Operating Income

Operating income increased by 159.4% to $4.5 million in the first quarter of 2010, from $1.7 million in the first quarter of 2009.

Income taxes

The Company’s effective tax rate for the first quarter of 2010 was 13.1%, compared to 15.9% in the first quarter of 2009. The lower income tax rate is mainly due to the Company’s subsidiary, Winner Industries (Shenzhen), obtaining the High and New Technology Enterprise Certificate which reduced its income tax rate from 18% to 15% and also due to the fact that another subsidiary, Winner Industries (Huanggang), was entitled to a two-year full exemption from enterprise income tax, and it experienced high sales revenue growth in the first quarter of 2010.

Net Income Attributable to Winner Medical Group Inc.

Net income increased by 165.8% to $3.9 million in the first quarter of 2010, as compared to approximately $1.5 million in the first quarter of 2009. Diluted earnings per share were $0.17 in the first quarter, versus $0.07 per share in the comparable quarter last year. This increase was primarily driven by high demand of PurCotton(R) products, rapid sales of traditional medical products to Chinese customers and North and South American customers, lean production management and favorable foreign exchange rates.

Other Select Data

Average accounts receivable days outstanding were 40 days in the first quarter of 2010 compared to 45 days in the fourth quarter of 2009.

As of December 31, 2009, the Company had $7.5 million in cash and cash equivalents, compared to $9.5 million as of September 30, 2009. Net cash provided by operating activities and net cash used in investing activities during the first quarter of 2010 were $3.2 million and $2.1 million, respectively. Working capital as of December 31, 2009 was $26.2 million compared to $23.0 million as of September 30, 2009.

2010 First Quarter Operational Highlights

China Medical Market Business Update

Net sales to customers in China totaled $8.1 million in the first quarter of 2010 compared to $2.6 million in the comparable quarter last year, an increase of 212.7%. This significant quarterly sales gain resulted from the Company’s strategy of launching its own brand name Winner(R) products and selling products through hospitals, distributors, and chain drugstores. The Company has established sales distribution channels in major cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, and Fuzhou and has cooperated with 7 out of the top 10 chain drugstores in China which have a combined network of approximately 20,000 locations in almost all major cities. Winner(R), as a well-known trademark, was recognized by the Trademark Office of the Chinese State Administration for Industry and is well accepted by the Company’s clients and end customers. The increase of sales within China is also due to orders related to H1N1 protective products. The Company expects to strengthen its sales continuously to the Chinese marketplace, and expects domestic demand to be driven by Chinese medical reforms and increasing demand for high quality medical disposable products.

PurCotton(R) Business Update

PurCotton(R) product sales of $2.5 million in the first quarter of 2010 represented a 199.2% increase versus the $0.8 million of sales in the first quarter of the 2009. Sales in the first quarter of 2010 benefited from an increase in PurCotton(R) raw materials sales (jumbo rolls) to customers in China and Japan who produce consumer products, including sanitary and incontinence products, as well as from the processing of orders for PurCotton(R) finished medical products, such as operating room towels and sponges for customers in China, Europe, and the United States.

As of December 31, 2009, the first two PurCotton(R) manufacturing lines were producing at full capacity, with a total production capacity of 200 tons per month. The third and fourth production lines are expected to start production in March and May 2010, respectively. In order to build and market the PurCotton(R) brand name in China, the Company has set up a wholly-owned subsidiary, Shenzhen PurCotton Technology Co., Ltd., which focuses on selling its PurCotton(R) branded products through Company owned chain stores. On December 31, 2009, the Company opened its first three PurCotton(R) pilot chain stores and another two stores were opened on February 8, 2010 in Shenzhen, Guangdong province. Each store sells four lines of PurCotton(R) branded personal products and healthcare supplies, including PurCotton(R) baby personal products, feminine personal products, daily home care products and medical care products. The total projected average cost to open each pilot store is approximately $60,000 to $80,000, which includes the lease take-out, a cash deposit, build-out, instruments, inventory stocking and one month salary for sales persons. This is a trial step as the Company enters the retail consumer personal products and healthcare suppliers markets in China. The Company will open more stores depending on the growth of market demand for PurCotton(R) products. The Company believes that this flagship product will be a significant growth driver and complement to its product portfolio.

Conference Call

Winner Medical’s senior management will host a conference call to discuss its first quarter 2010 results and recent business developments.

    Date of the conference call: Wednesday, February 10, 2010 (EST)

    Time: 1:30pm (Pacific Standard Time) / 4:30pm (Eastern Standard Time) /
          February 11, 2010 at 5:30am (Shenzhen/Hong Kong Time)

    Dial-in Number: 866-700-6293 (US)
                    10-800-130-0399 (South China)
                    10-800-152-1490 (North China)
                    800-96-3844 (HK)
                    +1-617-213-8835 (International)

    Passcode: 33425805.

A telephone replay will be available shortly after the conclusion of the call and will be accessible through February 17, 2010 by calling 888-286-8010 (US) or +1-617-801-6888 (International); Passcode: 30554778.

About Winner Medical:

Winner Medical is a leading manufacturer and the largest exporter by volume in the medical dressing industry in China. Headquartered in Shenzhen, the Company has eight wholly-owned operating subsidiaries and four joint ventures with over 5,000 employees. The Company engages in the manufacturing, sale, research, and development of medical care products, wound care products, home care products and PurCotton(R) products, a nonwoven fabric made from 100% natural cotton. The products are sold worldwide, with Europe, the United States and Japan serving as the top three markets. The Company currently holds more than sixty patents and patent applications for various products and manufacturing processes and is one of the few Chinese companies licensed by the U.S. Food and Drug Administration (FDA) to ship finished, sterilized products directly to the United States market. To learn more about Winner Medical, please visit Winner Medical’s web site at: http://ir.winnermedical.com .

Forward-Looking Statements:

This press release contains certain statements that may include “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. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding Winner Medical and its subsidiary companies’ business strategy, plans and objective and statements of non-historical information. 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 Winner Medical 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. Winner Medical’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 Winner Medical’s periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to Winner Medical or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, Winner Medical does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    Company:
     Peng Zhai
     Investor Relations Manager
     Winner Medical Group Inc.
     Tel:   +86-755-2806-6858
            +86-755-2813-8888 x691
     Email: investors@winnermedical.com
     Web:   http://ir.winnermedical.com

    Investors:
     Scott Powell HC International, Inc.
     Tel:   +1-917-721-9480
     Email: scott.powell@hcinternational.net
     Web:   http://www.hcinternational.net

    Winner Medical Group Inc.
    Consolidated Statements of Income and Comprehensive Income

                                                       Three months ended
                                                         December 31,
                                                     2009             2008
                                                  (Unaudited)     (Unaudited)
                                                      US$              US$

    Net sales                                    29,786,805       25,730,274

    Cost of sales                               (20,354,958)     (19,126,878)
    Gross profit                                  9,431,847        6,603,396

    Other operating income, net                     440,463          484,964
    Exchange difference, net                        (24,380)        (885,012)
    Selling, general and administrative
     expenses                                    (5,323,719)      (4,458,526)

    Income from operations                        4,524,211        1,744,822
    Interest income                                  17,872           12,516
    Interest expense                                (53,846)        (208,409)
    Equity in earnings of 50 percent
     or less owned persons                          (30,322)          89,876
    Income before income taxes                    4,457,915        1,638,805

    Income taxes                                   (581,887)        (260,128)
    Net income                                    3,876,028        1,378,677

    Net loss attributable to
     non-controlling interests                       44,684           96,207
    Net income attributable to
     Winner Medical Group Inc.                    3,920,712        1,474,884

    Comprehensive income:
    Net income                                    3,876,028        1,378,677
    Foreign currency translation
     difference                                    (172,924)        (167,682)
    Comprehensive income attributable
     to non-controlling interests                    44,735           96,207

    Comprehensive income attributable
     to Winner Medical Group Inc.                 3,747,839        1,307,202

    Net income attributable to Winner
     Medical Group Inc. per share
    - basic                                            0.18             0.07
    - diluted                                          0.17             0.07

    Weighted average common stock
     outstanding
    - basic                                      22,363,675       22,363,675
    - diluted                                    22,473,167       22,417,239

    Winner Medical Group Inc.
    Consolidated Balance Sheets

                                                 December 31,    September 30,
                                                      2009            2009
                                                  (Unaudited)     (Unaudited)
                                                       US$             US$
                                    ASSETS

    Current assets:
      Cash and cash equivalents                    7,476,616       9,493,026
      Restricted bank deposits                       133,929         123,868
      Accounts receivable, less
       allowances for doubtful
        accounts of US$578,831 and
        US$244,401 at December 31,
        2009 and September 30, 2009,
        respectively                              13,401,545      13,148,462
      Amount due from an affiliated
       company                                        26,491              --
      Inventories                                 14,974,014      14,932,740
      Prepaid expenses and other
       receivables                                 5,976,808       3,614,567
      Income taxes recoverable                        31,638          30,910
      Deferred tax assets                            462,878         359,151
            Total current assets                  42,483,919      41,702,724
    Property, plant and equipment,
     net                                          56,036,622      55,770,870
    Investment in equity investees                 1,893,677       1,923,956
    Intangible assets, net                           140,565         147,008
    Non-current restricted bank
     deposits                                         34,904          34,917
    Prepaid expenses and other
     receivables                                   1,780,298       1,104,344
    Deferred tax assets                              104,075         252,190
            Total assets                         102,474,060     100,936,009

                     LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
    Short-term bank loans                          3,661,287       6,589,545
    Accounts payable                               5,412,730       4,843,404
    Accrued payroll and employee
     benefits                                      2,300,876       2,072,892
    Customer deposits                                493,168         603,824
    Other accrued liabilities                      3,085,505       2,574,736
    Amounts due to affiliated
     companies                                        21,137          56,349
    Income taxes payable                           1,237,027       1,938,941
            Total current liabilities             16,211,730      18,679,691

    Deferred tax liabilities                          41,904          41,899
            Total liabilities                     16,253,634      18,721,590

    Commitments and contingencies

    Stockholders' equity:
      Common stock, par value $0.001
       per share; authorized 247,500,000,
       issued and outstanding December
       31, 2009 - 22,363,675 shares;
       September 30, 2009 - 22,363,675
       shares                                         22,364          22,364
    Additional paid-in capital                    31,469,026      31,166,123
    Retained earnings                             40,802,138      36,797,172
    Statutory reserves                             3,343,841       3,428,095
    Accumulated other comprehensive
     income                                       10,544,977      10,717,850
            Total Winner Medical Group Inc
             stockholders' equity                 86,182,346      82,131,604
    Non-controlling interests                         38,080          82,815
            Total equity                          86,220,426      82,214,419

            Total liabilities and equity         102,474,060     100,936,009

CLEVELAND, Feb. 10, 2010 (GLOBE NEWSWIRE) — Athersys, Inc. (Nasdaq:ATHX) announced today that it has been granted U.S. patent 7,659,118 that covers non-embryonic multipotent stem cells, their isolation and expansion, and related pharmaceutical compositions. Athersys also announced that it has been granted – and the opposition period has cleared – EP patent EP1218489B1 that covers non-embryonic pluripotent stem cells, their isolation, expansion, and usage.

The issued patents cover Athersys’ proprietary scalable MultiStem^® technology, which is an investigational stem cell therapy that has demonstrated therapeutic potential to treat a broad range of diseases and indications, including acute myocardial infarction, inflammatory bowel disease (IBD), bone marrow transplant support and ischemic stroke. Athersys announced in December 2009 a strategic partnership with Pfizer under which the companies will jointly develop MultiStem for IBD.

“These patents further expand our stem cell IP estate and offer additional validation of the strength and breadth of the Athersys IP portfolio,” said William (B.J.) Lehmann, President and COO of Athersys. “We believe that these patents are especially important as they extend the coverage of the composition, isolation, differentiation and scalable manufacturing of non-embryonic stem cells that are core to our technology and product portfolio.”

Both patents form part of Athersys’ broad intellectual property (IP) portfolio of 14 granted patents and more than 120 global patent applications around its stem cell technology and MultiStem product platform. The current IP estate, which incorporates additional filings and may broaden over time, could provide coverage for Athersys’ cell compositions, methods of use, manufacturing processes, and product candidates through as late as 2028.

About MultiStem

MultiStem is a patented and proprietary cell therapy product consisting of a special class of stem cell that is obtained from bone marrow or other tissue sources of healthy, consenting adult donors, and which has the demonstrated ability to produce a range of factors and form multiple cell types. MultiStem appears to promote tissue repair and healing in multiple ways, such as through the production of multiple therapeutic factors produced in response to signals of inflammation and tissue damage. Athersys believes that MultiStem represents a unique “off-the-shelf” stem cell product.  This belief is based on work that demonstrates the ability of MultiStem to deliver multiple mechanisms of therapeutic benefit, to be administered without tissue matching or immunosuppression, and to be produced on a large-scale. Athersys has forged strategic partnerships with Pfizer to develop MultiStem for IBD and with Angiotech to develop MultiStem in acute myocardial infarction and other cardiovascular indications.  In 2008, Athersys was awarded the Frost & Sullivan North American Product Innovation of the Year Award for MultiStem, which cited the product as having best-in-class potential among stem cell and regenerative medicine technologies.

About Athersys

Athersys is a clinical stage biopharmaceutical company engaged in the discovery and development of therapeutic product candidates designed to extend and enhance the quality of human life. The Company is developing MultiStem^®, a patented, adult-derived “off-the-shelf” stem cell product platform for multiple disease indications, including damage caused by myocardial infarction, bone marrow transplantation and oncology treatment support, ischemic stroke, and inflammatory bowel disease. The Company is also developing a portfolio of other therapeutic programs, including orally active pharmaceutical product candidates for the treatment of metabolic and central nervous system disorders, utilizing proprietary technologies, including Random Activation of Gene Expression (RAGE^®). Athersys has forged several key strategic alliances and collaborations with leading pharmaceutical and biotechnology companies, as well as world-renowned research institutions in the United States and Europe to further develop its platform and products.

The Athersys, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4548

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements relate to, among other things, the expected timetable for development of our product candidates, our growth strategy, and our future financial performance, including our operations, economic performance, financial condition, prospects, and other future events. We have attempted to identify forward-looking statements by using such words as “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “should,” “will,” or other similar expressions. These forward-looking statements are only predictions and are largely based on our current expectations. A number of known and unknown risks, uncertainties, and other factors could affect the accuracy of these statements. Some of the more significant known risks that we face that could cause actual results to differ materially from those implied by forward-looking statements are the risks and uncertainties inherent in the process of discovering, developing, and commercializing products that are safe and effective for use as human therapeutics, such as the uncertainty regarding market acceptance of our product candidates and our ability to generate revenues, including MultiStem for the treatment of inflammatory bowel disease, acute myocardial infarction and other disease indications. These risks may cause our actual results, levels of activity, performance, or achievements to differ materially from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Other important factors to consider in evaluating our forward-looking statements include: the possibility of delays in, adverse results of, and excessive costs of the development process; changes in external market factors; changes in our industry’s overall performance; changes in our business strategy; our ability to protect our intellectual property portfolio; our possible inability to realize commercially valuable discoveries in our collaborations with pharmaceutical and other biotechnology companies; our possible inability to execute our strategy due to changes in our industry or the economy generally; changes in productivity and reliability of suppliers; and the success of our competitors and the emergence of new competitors. You should not place undue reliance on forward-looking statements contained in this press release, and we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

— Increases Revenue 32% to $19.2 Million —

— Grows Installed Restaurants by 20% and Seated Diners by 40% Over Q4 2008 —

— Achieves EPS of $0.13 and Non-GAAP EPS of $0.14 —

SAN FRANCISCO, Feb. 9, 2010 (GLOBE NEWSWIRE) — OpenTable, Inc. (Nasdaq:OPEN) (www.opentable.com), a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2009.

OpenTable reported consolidated net revenues for Q4 2009 of $19.2 million, a 32% increase over Q4 2008. Consolidated net income for Q4 2009 was $3.1 million, or $0.13 per diluted share. Non-GAAP consolidated net income for Q4 2009, which excludes tax affected stock-based compensation expense, was $3.2 million, or $0.14 per diluted share.

OpenTable provides operating results by geography as the Company is at different stages of development in its North America and International operations.

North America Results

• Installed restaurant base as of December 31, 2009 totaled 10,850, a 17% increase over December 31, 2008.
• Seated diners totaled 11.8 million, a 39% increase over Q4 2008.
• Revenues totaled $18.0 million, a 30% increase over Q4 2008.
• Non-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and stock-based compensation) totaled $7.2 million, or 40% of North America revenues, a 71% increase over Q4 2008.

International Results

• Installed restaurant base as of December 31, 2009 totaled 1,501, a 44% increase over December 31, 2008.
• Seated diners totaled 0.3 million, a 99% increase over Q4 2008.
• Revenues totaled $1.2 million, a 63% increase over Q4 2008.
• Non-GAAP adjusted EBITDA totaled a loss of $1.2 million compared to adjusted EBITDA loss of $1.8 million in Q4 2008.

“OpenTable had a very strong fourth quarter, with growth in our key metrics of installed restaurants and seated diners translating into robust financial performance,” said Jeff Jordan, CEO of OpenTable. “We’re energized by the opportunities in front of us and are focused on helping our restaurant partners grow and providing diners with the convenience of online, real-time restaurant reservations.”

Q4 2009 Consolidated Financial and Operating Summary

• Total revenues were $19.2 million in Q4 2009, up 32% over Q4 2008 revenues of $14.5 million.
  • Subscription revenues were $9.6 million in Q4 2009, up 18% over Q4 2008 revenues of $8.1 million. Subscription revenues increased as a result of the increase in installed restaurants.
  • Reservation revenues were $8.5 million in Q4 2009, up 47% over Q4 2008 revenues of $5.8 million. Reservation revenues primarily increased as a result of the increase in seated diners.
  • Installation and other revenues were $1.0 million in Q4 2009, up 67% over Q4 2008 revenues of $0.6 million.
• Total operating expenses were $15.1 million in Q4 2009, up 6% over Q4 2008 operating expenses of $14.2 million. The increase was driven by a 7% increase in headcount and an increase in legal expenses.
• Operating income was $4.1 million in Q4 2009 compared to $0.4 million in Q4 2008. Non-GAAP consolidated operating income, excluding stock-based compensation expense, was $4.6 million in Q4 2009 compared to $1.2 million in Q4 2008.
• The Q4 2009 GAAP income tax rate was 26% and the full year 2009 effective tax rate was 44%.
• Consolidated net income was $3.1 million, or $0.13 per diluted share, in Q4 2009 compared to a loss of $0.9 million, or a loss of $0.09 per diluted share, in Q4 2008. Non-GAAP consolidated net income, which excludes tax affected stock-based compensation expense, was $3.2 million, or $0.14 per diluted share, in Q4 2009 compared to $0.3 million, or $0.03 per diluted share, in Q4 2008.
• As of December 31, 2009, OpenTable had cash and cash equivalents and short-term investments of $70.0 million.

2009 Consolidated Financial and Operating Summary

• OpenTable’s total revenues were $68.6 million in 2009, up 23% over 2008 revenues of $55.8 million.
• Operating income was $8.7 million in 2009 compared to $0.6 million in 2008. Non-GAAP consolidated operating income, excluding stock-based compensation expense, was $11.5 million in 2009 compared to $4.6 million in 2008.
• Non-GAAP adjusted EBITDA totaled $16.7 million in 2009, or 24% of consolidated revenues, an 86% increase over 2008.

“The fourth quarter highlights continued growth in our key operating and financial metrics,” said Matt Roberts, CFO of OpenTable. “With record revenues and EBITDA margins, the business continues to demonstrate solid results.”

Quarterly Conference Call

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET and will be available through March 31, 2010, at http://investors.opentable.com/events.cfm. This call may contain forward-looking statements and other material information regarding the Company’s financial and operating results.

About Non-GAAP Financial Information

The accompanying press release, dated February 9, 2010, contains certain non-GAAP financial measures. Tables are provided in the press release that reconcile the non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP consolidated net income and the related per diluted share amounts, non-GAAP consolidated operating income, and non-GAAP adjusted EBITDA. When used in connection with historical results, the non-GAAP financial measure adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and stock-based compensation.  Within the Company’s reconciliation to non-GAAP diluted net income per share, the impact of undistributed earnings allocated to participating securities has been excluded.

To supplement the Company’s consolidated financial statements presented on a GAAP basis, management believes that these non-GAAP measures provide useful information about the Company’s core operating results and thus are appropriate to enhance the overall understanding of the Company’s past financial performance and its prospects for the future. Management believes it is useful to exclude stock-based compensation because it does not reflect the underlying performance of the Company’s business operations. These adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results and trends and performance. Management uses these non-GAAP measures to evaluate the Company’s financial results. The presentation of non-GAAP measures is not meant to be considered in isolation or as a substitute for or superior to financial results determined in accordance with GAAP.

Background Information

The Company reports consolidated operations in U.S. dollars and operates in two geographic segments: North America and International. The North America segment is comprised of all operations in the United States, Canada and Mexico, and the International segment is comprised of all non-North America operations, which includes operations in Europe and Asia. The Company generates substantially all of its revenues from its restaurant customers; it does not charge any fees to diners. The Company’s revenues include installation fees for the Electronic Reservation Book (including training), monthly subscription fees and a fee for each restaurant guest seated through online reservations.

Forward-Looking Statements

This press release and its attachments contain 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 that involve risks and uncertainties. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding the Company’s strategic and operational plans. The Company’s actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, among others, the impact of the current economic climate on the Company’s business; the Company’s ability to maintain an adequate rate of growth; the Company’s ability to effectively manage its growth; the Company’s ability to attract new restaurant customers; the Company’s ability to increase the number of visitors to its website and convert those visitors into diners; the Company’s ability to retain existing restaurant customers and diners or encourage repeat reservations; the Company’s ability to successfully enter new markets and manage its international expansion; the Company’s ability to successfully manage any acquisitions of businesses, solutions or technologies; interruptions in service and any related impact on the Company’s reputation; and costs associated with defending intellectual property infringement and other claims.  More information about potential factors that could affect the Company’s business and financial results is contained in the Company’s quarterly report on Form 10-Q for the period ended September 30, 2009, and the Company’s other filings with the SEC. The Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

About OpenTable, Inc.

OpenTable is a leading provider of free, real-time online restaurant reservations for diners and reservation and guest management solutions for restaurants. The OpenTable network delivers the convenience of online restaurant reservations to diners and the operational benefits of a computerized reservation book to restaurants. OpenTable has more than 12,000 restaurant customers, and, since its inception in 1998, has seated more than 130 million diners around the world. The Company is headquartered in San Francisco, California, and the OpenTable service is available throughout the United States, as well as in Canada, Germany, Japan, Mexico, and the United Kingdom.

The OpenTable, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6474

####

OpenTable, OpenTable.com, OpenTable logos and other service names are the trademarks of OpenTable, Inc.

CONTACT:  OpenTable, Inc.
          Investor Relations:
            415-344-6520
            investors@opentable.com
          Media Relations
            415-344-4275
            pr@opentable.com

– OTC Revenue Growth of 32% and Beauty.com Increases 28% in 14-Week Quarter

– Gross Margins of 29.4% are Highest in Company History

– New Customer Growth Including Partnerships of 49% Year-Over-Year

BELLEVUE, Wash., Feb. 9, 2010 (GLOBE NEWSWIRE) — drugstore.com, inc. (Nasdaq:DSCM), a leading online retailer of health, beauty, vision, and pharmacy products, today announced its financial results for the fourth quarter and full year ended January 3, 2010.  The fourth quarter and 2009 periods are based on a 14-week and 53-week fiscal calendar, respectively, and compare to a 13-week fourth quarter and 52-week year in 2008.

In the fourth quarter of 2009, drugstore.com reported quarterly net sales were up 25% to $117.4 million, driven by strong over-the-counter (OTC) and Beauty.com sales. Gross margins increased 90 basis points year-over-year to a record 29.4%. During the quarter, the company incurred expenses totaling $1.4 million related to its agreement to acquire Salu, Inc., owner and operator of SkinStore.com, and its strategic alliance with Luxottica Group S.p.A. Including these expenses, the company’s net loss was $1.6 million, and adjusted EBITDA was $3.5 million, which compared to net income of $289,000 and adjusted EBITDA of $5.2 million reported in the same period of the prior year. 2008 fourth quarter adjusted EBITDA and net income results included a $3.1 million contribution from the company’s discontinued local-pick-up (LPU) business. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expense, adjusted to exclude the impact of stock-based compensation expense.

For the year, the company reported net sales of $412.8 million, a net loss of $1.4 million, and adjusted EBITDA of $17.1 million. Additionally, the company reported free cash flow of $1.4 million for 2009 compared to $680,000 for 2008.

“We are very pleased with our strong fourth quarter results reporting overall net sales growth of 25% and OTC net sales growth of 32%, including the positive impact of the 14-week quarter,” said Dawn Lepore, chief executive officer and chairman of the board of drugstore.com, inc. “Our growth was driven by strong performance from our core business, including our beauty business on drugstore.com and Beauty.com, along with growing contributions from our partnerships. Our partnerships helped fuel new customer growth of 49% over the same period last year, while also reducing our marketing cost per new customer to its lowest level in company history. Gross margins were a record 29.4% in the fourth quarter, reflecting an increasing mix of higher margin categories, lower per-order shipping costs, and improved pharmacy margins. Driven by record net sales and gross margins, our adjusted EBITDA increased by 65% year-over-year, excluding the impact of our discontinued LPU business, and by over 125%, without the impact of the acquisition and strategic alliance expenses.”

“We believe our strong financial results throughout 2009, and the pending acquisition of Skinstore.com, have even more firmly established our company as a clear leader in health and beauty online. In the coming year, we will further leverage our unique market position and infrastructure, with increasing contributions from Skinstore.com and our key partnerships with Medco and Luxottica. With the continuing ramp up of these initiatives, we are very optimistic about our growth prospects for 2010,” concluded Ms. Lepore.

Outlook for First Quarter of 2010

For the first quarter of 2010, the company is targeting net sales in the range of $117.0 million to $121.0 million, a net loss in the range of $2.4 million to $3.5 million, and adjusted EBITDA in the range of $2.15 million to $3.25 million. This outlook assumes that the company’s previously announced acquisition of Salu, Inc. will close within the next two weeks and includes an estimated $4 million to $5 million of net sales that the company expects Salu to generate after the closing of the acquisition as well as $1.9 million of transaction and integration related expenses.

Financial and Operational Highlights for the Fourth Quarter of 2009

(All comparisons are made to the fourth quarter of 2008 and reflect the reporting of the local pick-up business as discontinued operations and a 14-week quarter in 2009 vs. a 13-week quarter in 2008)

Key Financial Highlights:

• Gross margins increased 90 basis points to a record 29.4%.
• Total contribution margin dollars increased by approximately 26% to $24.6 million.
• Total orders grew by 28% to 1.8 million and contribution margin dollars per order decreased slightly to $14.
• Operating expenses as a percentage of net sales declined to 31% from 32%.
• Free cash flow more than doubled to $1.4 million for the trailing twelve months, compared with $680,000 for the trailing twelve months ended December 28, 2008.
• Cash, cash equivalents, and marketable securities were $36.9 million at year end compared to $38.2 million in the prior year.

Net Sales Summary:

• Total net sales increased almost 25% to $117.4 million. (Excluding the 14th week in the quarter, net sales increased 16%.)
• OTC net sales grew 32% to $92.1 million, including Beauty.com growth of 28%.
• Vision net sales grew 13% to $16.5 million.
• Mail-order pharmacy net sales declined 8% to $8.8 million
• Average net sales per order were $66. Average net sales per order for OTC increased slightly sequentially to $58, vision remained flat at $118, and mail-order pharmacy increased to $165.
• Net sales from repeat customers [1] represented 74% of net sales.

Key Customer Milestones:

• We served approximately 603,000 new customers, inclusive of our strategic partnerships, during the quarter, up almost 50% over the same period in the prior year.
• Marketing and sales expense per new customer decreased significantly on both a sequential and year-over-year basis to approximately $18.
• We have now served approximately 11.7 million customers since inception.
• The number of active customers [2] was 3.0 million, up 18% year over year.

1. Net sales from repeat customers exclude Weil Lifestyle, LLC (Weil)-related Custom Nutrition Services (CNS) net sales and reflect only the activity of customers making purchases through the Web sites of drugstore.com, inc. and its subsidiaries.

2. Active customer base reflects those customers who have purchased at least once within the last 12 months. Both the active customer base (a trailing 12-month number) and average annual spend per active customer exclude net sales and orders generated by the company’s CNS fulfillment relationship with Weil, and reflect only the activity of customers making purchases through the Web sites of drugstore.com, inc. and its subsidiaries.

Conference Call

Investors, analysts, and other interested parties are invited to join the drugstore.com, inc. quarterly conference call on February 9, 2010 at 5:00 p.m. ET (2:00 p.m. PT). To participate, callers should dial 877-941-4774 (international callers should dial 480-629-9760) five minutes beforehand. Investors may also listen to the conference call live at http://investor.drugstore.com/, by clicking on the “audio” hyperlink. A replay of the call will be available through Sunday, February 14, 2010 by dialing 800-406-7325 and enter passcode 4204272# and international parties should call 303-590-3030 and enter passcode 4204272# beginning two hours after completion of the call.

Non-GAAP Measures

To supplement the consolidated financial statements presented in accordance with GAAP, drugstore.com, inc. uses the non-GAAP measure of adjusted EBITDA, defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expenses, adjusted to exclude the impact of stock-based compensation expense. This non-GAAP measure is provided to enhance the user’s overall understanding of the company’s current financial performance. Management believes that adjusted EBITDA, as defined, provides useful information to the company and to investors by excluding certain items that may not be indicative of the company’s core operating results. In addition, because drugstore.com, inc. has historically provided adjusted EBITDA measures to investors, management believes that including adjusted EBITDA measures provides consistency in the company’s financial reporting. However, adjusted EBITDA should not be considered in isolation, or as a substitute for, or as superior to, net income/loss, cash flows, or other consolidated income/loss or cash flow data prepared in accordance with GAAP, or as a measure of the company’s profitability or liquidity. Although adjusted EBITDA is frequently used as a measure of operating performance, it is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. Net income/loss is the closest financial measure prepared by the company in accordance with GAAP in terms of comparability to adjusted EBITDA. A reconciliation of adjusted EBITDA to net income/loss is included with the financial statements attached to this release.

In addition, the company uses the non-GAAP measure of free cash flow, defined as net cash provided by (used in) operating activities plus proceeds from the sale of discontinued operations less purchases of fixed assets as disclosed on our consolidated statements of cash flows. Management believes that free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to service debt obligations, make investments, fund acquisitions and for certain other activities. Free cash flow is not a measure determined in accordance with GAAP and may not be defined or calculated by other companies in the same manner. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts payable, including inventory purchases, and accounts receivable. Since free cash flow includes investments in operating assets, management believes this non-GAAP liquidity metric is useful in addition to the most directly comparable GAAP measure of net cash provided by (used in) operating activities, and should not be used as a substitute for it or any other measure determined in accordance with GAAP. A reconciliation of free cash flow to net cash provided by operating activities is included with the supplemental financial schedules attached to this release.

About drugstore.com, inc.

drugstore.com, inc. (Nasdaq:DSCM) is a leading online retailer of health, beauty, vision, and pharmacy products. Our portfolio of brands includes: drugstore.com(TM), Beauty.com(TM), and VisionDirect.com(TM). All are accessible from http://www.drugstore.com and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 45,000 products at competitive prices.

The drugstore.com pharmacy is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and operates in compliance with federal and state laws and regulations in the United States.

The drugstore.com, inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6419

The financial results contained in this press release are preliminary and unaudited. In addition, this press release contains forward-looking statements regarding future events or the future financial and operational performance of drugstore.com, inc. Words such as “will,” “expect,” “target,” “believe,” “may,” “continue,” and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are based on current expectations, are not guarantees of future performance and involve assumptions, risks, and uncertainties. Actual performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such differences could include, among other things: the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement with Salu; the inability to complete the Salu transaction due to the failure to receive approvals or to satisfy other conditions to the transaction; the risk that the proposed Salu transaction disrupts current plans and operations; the risk that anticipated synergies and opportunities as a result of the Salu transaction will not be realized; difficulty or unanticipated expenses in connection with integrating Salu into drugstore.com; the risk that the acquired business does not perform as planned; effects of changes in the economy; changes in consumer spending and consumer trends; fluctuations in the stock market; changes affecting the Internet, online retailing, and advertising; difficulties establishing our brand and building a critical mass of customers; the unpredictability of future revenues, expenses, and potential fluctuations in revenues and operating results; risks related to business combinations and strategic alliances; possible tax liabilities relating to the collection of sales tax; the level of competition; seasonality; the timing and success of expansion efforts; changes in senior management; risks related to systems interruptions; possible changes in governmental regulation; possible increases in the price of fuel used in the transportation of packages, or other energy products; and the company’s ability to manage multiple growing businesses. Additional information regarding factors that potentially could affect the business, financial condition, and operating results of drugstore.com, inc. is included in the company’s periodic filings with the SEC on Forms 10-K, 10-Q, and 8-K. drugstore.com, inc. expressly disclaims any intent or obligation to update any forward-looking statement, except as otherwise specifically stated by it.

JINAN, China — Pansoft Company Limited (Nasdaq: PSOF) (“Pansoft” or the “Company”), a leading ERP software service provider for the oil and gas industry in China, today announced financial results for the second fiscal quarter ended December 31, 2009.

    Highlights for the Second Quarter 2010
    -- Total revenues were $4.9 million, an increase of 47% compared to $3.3
       million for the quarter ended December 31, 2008
    -- Gross profit was $2.6 million, an increase of 56% compared to $1.7
       million for the quarter ended December 31, 2008
    -- Gross margin was 53%, compared to 50% in the for the quarter ended
       December 31, 2008
    -- Operating profit was $2.1 million, an increase of 93% compared to $1.1
       million for the quarter ended December 31, 2008
    -- Net income was $1.9 million, an increase of 94% compared to $1.0
       million for the quarter ended December 31, 2008
    -- Diluted earnings per share was $0.36, an increase of 64% compared to
       $0.22 for the quarter ended December 31, 2008
    -- Adjusted net income excluding share-based compensation expenses was
       $2.01 million, an increase of 80% compared to $1.16 million for the
       quarter ended December 31, 2008.
    -- Adjusted Diluted EPS excluding share-based compensation expenses was
       $0.42, an increase of 68% compared to $0.25 for the quarter ended
       December 31, 2008

On December 11, 2009, Pansoft’s Board of Directors authorized a change in the Company’s fiscal year end to June 30 from December 31 because the new fiscal year end is more consistent with the purchasing cycle of its major customers. As a result of this change, the quarter ended December 31, 2009 represents the second quarter of the fiscal year ending June 30, 2010.

To assist shareholders with understanding the change in fiscal year, the company is presenting pro-forma financial information for the twelve-month period ended December 31, 2009.

    Highlights for Twelve-Month Period ended December 31, 2009
    -- Total revenues were $10.0 million, an increase of 46% compared to $6.9
       million for the twelve months ended December 31, 2008, exceeding the
       company's previous guidance of a 40% increase
    -- Gross profit was $5.0 million, an increase of 43% compared to $3.5
       million for the twelve months ended December 31, 2008
    -- Gross margin was 50%, compared to 51% for the twelve months ended
       December 31, 2008
    -- Operating profit was $3.1 million, an increase of 22% compared to $2.6
       million for the twelve month ended December 31, 2008
    -- Net income was $3.0 million, an increase of 31% compared to $2.3
       million for the twelve months ended December 31, 2008
    -- Adjusted net income excluding share-based compensation expenses was
       $3.65 million, an increase of 46%, compared to $2.5 million for the
       twelve months ended December 31, 2008
    -- Diluted earnings per share was $0.55, an increase of 10% compared to
       $0.50 for the twelve months ended December 31, 2008
    -- Adjusted Diluted EPS excluding share-based compensation expenses was
       $0.67, an increase of 24% compared to $0.54 for the twelve-month
       period ended December 31, 2008

“Once again we delivered solid quarter and calendar year results driven by our focus on execution,” said Guoqiang Lin, Pansoft’s CEO. “We continued to see large orders from our long-term customers and their subsidiaries. Our centralized accounting system has been implemented at our two largest clients, PetroChina and Sinopec, and is also in the process of being integrated with other ERP systems within their operations, which should provide continued demand for our services. In addition, we have taken a number of initiatives to penetrate into new markets and win new clients and have achieved preliminary success, although yet to significantly impact our total revenue. We believe that our strategy to expand our business operations and diversify our customer base will position Pansoft well to achieve our long-term growth and profitability objectives.”

“We enjoyed healthy top and bottom line growth in the second quarter of fiscal year 2010 and over the last twelve months. Adjusted EPS increased by 24% year-over-year driven by our exceptional financial and operational performance,” added Allen Zhang, Pansoft’s Chief Financial Officer. “Looking ahead, increasing investments in engineering capabilities, sales and marketing efforts, and system development efficiencies will continue to be key drivers for Pansoft.”

Financial Results Highlights for the Three Months Ended December 31, 2009

Total revenue for the three months ended December 31, 2009 was $4.9 million, a 47% increase from $3.3 million in the three months ended December 31, 2008. The increase in revenue was due to the increased number and value of contracts for development and integration services.

Cost of sales was $2.3 million, an increase of 38% from $1.7 million in the three months ended December 31, 2008. Cost of sales increased at a slower pace than revenue as a result of cost control measures designed to contain expenses.

Gross profit in the quarter was $2.6 million, an increase of 56% from $1.7 million in three months ended December 31, 2008. Gross margin was 53%, compared to 50% in the three months ended December 31, 2008.

Operating expenses were $0.5 million, a decrease of 13% from $0.6 million in the three months ended December 31, 2008.

Operating profit was $2.1 million, an increase of 93% from $1.1 million in the three months ended December 31, 2008. Operating margin was 42% compared to 32% in three months ended December 31, 2008.

Net income was $1.9 million, an increase of 94% from $1.0 million in the corresponding period in 2008. The significant increases in our operating and net profits were due to a substantial increase in revenues from our major contracts and reduction of operating expenses. Diluted earnings per share were $0.36, an increase of 64% from $0.22 in the corresponding period in 2008. Adjusted Diluted EPS excluding share-based compensation expenses was $0.42, an increase of 68% compared to $0.25 for three months ended December 31, 2008.

Financial Results Highlights for the Twelve Months ended December 31, 2009

Pansoft has changed its fiscal year end to June 30. A transition report on Form 20-F will be filed for the six-month transition period ended June 30, 2009. The results for the six-month period ended December 31, 2009 will be included in the annual report on Form 20-F for the fiscal year ending June 30, 2010. To further assist shareholders in understanding the transition to the new fiscal year, pro-forma operating results for the twelve months ended December 31, 2009 are provided below.

Total revenue for the twelve months ended December 31, 2009 was $10.0 million, an increase of 46% from $6.9 million in the twelve months ended December 31, 2008. The increase in revenue was mainly due to increase in number of contracts as well as size of contracts signed with our major long-term clients. This is consistent with Pansoft’s strategy to become an important part of the clients’ IT platform and solicit their IT expansion projects.

Cost of sales was $5.1 million, an increase of 49% from $3.4 million in the twelve months ended in 2008. Cost of sales increased at a faster rate than revenue growth due to a significant increase in the number of employees as a part of our corporate expansion strategy and technical team enhancement.

Gross profit was $5.0 million, an increase of 43% from $3.5 million in the twelve months ended in 2008. Gross margin was 50%, compared to 51% for the twelve months ended December 31, 2008.

Operating expenses were $1.9 million, an increase of 100% from $0.9 million in the twelve months ended in 2008. Operating expenses consist primarily of general and administrative expenses, selling expenses, professional fees and stock option expenses. The increase in operating expenses in 2009 was mainly due to the increase in stock-based compensation and public listing expenses, which accounted for 34% and 20% of total operating expenses, respectively.

Operating profit was $3.1 million, an increase of 22% from $2.6 million in the twelve months ended December 31, 2008. Operating margin was 31%, compared to 37% in the twelve months ended December 31, 2008.

Net income was $3.0 million, an increase of 31% from $2.3 million in the corresponding period in 2008. Adjusted net income, excluding stock-based compensation totaled $3.7 million, an increase of 46% compared to $2.5 million in the twelve months ended December 31, 2008. Diluted earnings per share were $0.55, an increase of 10% from $0.50 in the corresponding period in 2008. Adjusted diluted EPS excluding share-based compensation expenses was $0.67, an increase of 24% from $0.54 for the twelve months ended December 31, 2008.

As of December 31, 2009, Pansoft’s cash and cash equivalents are $14.7 million, an increase of 21% compared to $12.2 million on December 31, 2008. The increase in cash and cash equivalents was primarily a result of increased collection of accounts receivable in the last calendar quarter of 2009. Cash flow from operating activities in 2009 was $2.8 million, an increase of 80% compared to $1.5 million from the twelve months ended December 31, 2008.

Business Outlook

Despite the worldwide financial crisis and economic recession in 2009, Pansoft has delivered strong performance, including a 46% increase in revenue in the twelve months ended December 31, 2009, exceeding its previous guidance of 40% revenue growth. In addition, Pansoft’s net profit increased by 31% and adjusted net income increased by 46%.

The Company expects its customization, integration services and solutions will continue to win major contracts from large customers. Going forward the Company intends to expand its business by reorganizing its technical service and development force by establishing four new business departments with the objective to penetrate into new markets and industries. Pansoft’s management believes that demand for its services will continue to grow as the Company leverages its advanced technology and application development expertise within the system integration services domain. Pansoft expects to achieve 40% organic growth in revenue year-over-year for the fiscal year ending in June 30, 2010.

“In addition, the Company has RMB 100 million, or approximately $14.7 million, in cash or cash equivalent on its balance sheet. This cash reserve allows the Company to focus aggressively on potential acquisition targets as part of its strategy to expand into additional industries,” said Hugh Wang, Chairman of Board.

Adjusted Financial Measures

This release contains adjusted financial measures. These adjusted financial measures, which are used as measures of the Company’s performance, should be considered in addition to, not as a substitute for, measures of the Company’s financial performance prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”). The Company’s adjusted financial measures may be defined differently than similar terms used by other companies. Accordingly, care should be exercised in understanding how the Company defines its adjusted financial measures.

Reconciliations of the Company’s adjusted measures to the nearest GAAP measures are set forth in the section below titled “Reconciliation of adjusted financials to GAAP Results.” These adjusted measures include adjusted gross profit, adjusted operating expenses, adjusted income from operations, non-GAAP net income, adjusted diluted net income per share and adjusted gross margin.

The Company’s management uses adjusted financial measures to gain an understanding of the Company’s comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects. The Company’s adjusted financial measures exclude certain special items, including stock-based compensation charge from its internal financial statements for purposes of its internal budgets. Adjusted financial measures are used by the Company’s management in their financial and operating decision-making, because management believes they reflect the Company’s ongoing business in a manner that allows meaningful period-to-period comparisons. The Company’s management believes that these adjusted financial measures provide useful information to investors and others in the following ways: 1) in understanding and evaluating the Company’s current operating performance and future prospects in the same manner as management does, if they so choose, and 2) in comparing in a consistent manner the Company’s current financial results with the Company’s past financial results.

The Company’s management believes excluding stock-based compensation from its adjusted financial measures is useful for itself and investors, as such expense will not result in future cash payment and is not an indicator used by management to measure the Company’s core operating results and business outlook.

The adjusted financial measures have limitations. They do not include all items of income and expense that affect the Company’s operations. Specifically, these adjusted financial measures are not prepared in accordance with GAAP, may not be comparable to adjusted financial measures used by other companies and, with respect to the adjusted financial measures that exclude certain items under GAAP, do not reflect any benefit that such items may confer to the Company. Management compensates for these limitations by also considering the Company’s financial results as determined in accordance with GAAP.

Conference Call Information

The Company will host a conference call at 8:30 a.m. ET on February 9, 2010 (9:30 p.m. Beijing Time) to review the Company’s financial results and answer questions.

To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 877-369-6556. International callers should dial +1 706-758-6238. The conference ID for the call is 54471389.

If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Tuesday, February 9, 2010 at 10:00 a.m. ET. To access the replay, dial 800-642-1687. International callers should dial +1 706-645-9291 and enter the conference ID 54471389.

A live and archived webcast of the call will be available on the Company’s website at http://www.pansoft.com/ .

About Pansoft Company Limited

Pansoft is a leading enterprise resource planning (“ERP”) software and professional services provider for the oil and gas industry in China. Its ERP software offers comprehensive solutions in various business operations including accounting, order processing, delivery, invoicing, inventory control and customer relationship management.

Forward-Looking Statements

This press release contains forward-looking statements concerning Pansoft Company Limited, including but are not limited to, statements regarding Pansoft’s acquisition strategies, projected revenue growth, contracts with customers, timing of development projects, and efforts to achieve business growth. The actual results may differ materially depending on a number of risk factors including but not limited to, the following: general economic and business conditions, development, shipment and market acceptance of products, additional competition from existing and new competitors, purchase cycle of major customers, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company’s reports filed with the Securities and Exchange Commission. Pansoft Company Limited undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

       Unaudited Consolidated Statements of Income and Comprehensive Income
                                   (In US Dollars)

                           (Unaudited)                    (Unaudited)
                      For Three Months Ended          For Six Months Ended
    In USD                  December 31,                   December 31,
                         2009           2008            2009          2008

    Sales             4,910,177      3,343,408       7,115,646     5,514,446
    Cost of sales     2,308,226      1,670,275       3,336,573     2,365,278
    Gross profit      2,601,951      1,673,133       3,779,073     3,149,168
    Gross Margin            53%            50%             53%           57%
    Expenses
    G/M expenses        119,431        355,625         236,399       486,452
    Selling
     expenses           160,297         21,010         254,917        29,516
    Professional
     fees                87,656         51,423         217,437        78,535
    Stock based
     compensation       151,127        164,197         302,254       203,012
    Gain on
     disposition
     of property
     & equipment           (955)           (30)           (964)         (184)
    Total Expenses      517,556        592,225       1,010,043       797,331

    Income from
     operations       2,084,395      1,080,908       2,769,030     2,351,837

    Other income
     (expenses) net      17,950         13,995          17,035        13,995
    Government grant         30             --              47            --
    Finance cost         (1,952)        (3,326)         (1,930)       (3,781)
    Interest
     income              48,502         56,262          86,562        83,817
    Income before
     provision from
     income taxes     2,148,925      1,147,839       2,870,744     2,445,868
    Provision for
     current
     income taxes        74,759        197,563          74,759       197,563
    Provision for
     deferred
     income taxes       139,356        (45,526)        173,120       190,633

    Net income        1,934,810        995,802       2,622,865     2,057,672
    Other
     comprehensive
     (loss) income         (720)       (24,358)          9,749        34,493
    Comprehensive
     income           1,934,090        971,444       2,632,614     2,092,165

                                                     For 12 Months Ended
    In USD                                              December 31,
                                                    2009             2008
                                                (Unaudited)        (Audited)
    Sales                                        10,055,552        6,891,710
    Cost of sales                                 5,051,491        3,395,695
    Gross profit                                  5,004,061        3,496,015
    Gross Margin                                        50%              51%
    Expenses
    G/M expenses                                    485,641          566,716
    Selling expenses                                376,711           36,047
    Professional fees                               387,824          140,072
    Stock based compensation                        644,228          203,012
    Gain on disposition of property &
     equipment                                       (1,696)          (1,558)
    Total Expenses                                1,892,708          944,289

    Income from operations                        3,111,353        2,551,726

    Other income (expenses) net                      13,263           14,532
    Government grant                                161,028               --
    Finance cost                                     (1,952)          (4,199)
    Interest income                                 150,150          126,294
    Income before provision from income
     taxes                                        3,433,842        2,688,353
    Provision for current income taxes               87,541          197,563
    Provision for deferred income taxes             340,216          190,633

    Net income                                    3,006,085        2,300,157
    Other comprehensive (loss) income                (7,968)         328,521
    Comprehensive income                          2,998,117        2,628,678

                   Consolidated Balance Sheet (In US Dollars)

                                          December 31,           December 31,
                                              2009                   2008
                                          (Unaudited)              (Audited)
    Assets
       Current assets
       Cash and cash equivalents          $14,708,248             12,185,950
       Account receivables, net             1,747,376              1,136,159
       Unbilled revenues                    3,393,563              2,221,142
       Prepayment, deposits and
        other receivables                     107,040                107,785
       Inventory                              117,967                 68,348
       Income tax receivable

    Total current assets                   20,074,194             15,719,384
    Non-current assets
       Property and equipment, net            689,462                650,708
       Deferred software
        development cost                           --                 73,287
    Total assets                          $20,763,656             16,443,379

    Liabilities
    Current liabilities
       Accounts payable and accrued
        liabilities                          $648,957                905,748
       Deferred revenue                       891,297                181,192
       Income tax payable                      76,794                192,470
       Deferred income taxes                  531,330                172,505

    Total current liabilities               2,148,378              1,451,915
    Long-term liabilities
       Deferred income taxes                       --                 18,531

    Total liabilities                       2,148,378              1,470,446

    Shareholders' equity
    Common stock (30,000,000 common
     shares authorized; par value of
     $0.0059 per share; 5,438,232
     shares issued and outstanding
     as of September 30, 2009)
       Share capital                           32,080                 32,080
       Additional paid-in capital           8,866,282              8,222,054
       Retained earnings                    8,270,822              5,711,114
       Statutory reserves                          --                363,063
       Accumulated other
        comprehensive income                  636,654                644,622
    Total stockholders' equity             18,615,278             14,972,933

    Total liabilities and
     stockholders equity                  $20,763,656             16,443,379

               RECONCILIATION OF ADJUSTED FINANCIALS TO GAAP RESULTS
                                 (In US Dollars)

                                   For 12 Months Ended December 31,

                           Actual   Adjust-    Adjusted   Adjust-    Adjusted
                          Results    ment       Results    ment       Results
                            2009                 2009                  2008

    Sales                10,055,552           10,055,552             6,891,710
    Cost of sales         5,051,491            5,051,491             3,395,695

    Gross profit          5,004,061            5,004,061             3,496,015
                                50%                  50%                   51%
    Expenses
      General and
       administrative
       expenses             485,641              485,641               566,716
      Selling
       expenses             376,711              376,711                36,047
      Professional
       fees                 387,824              387,824               140,072
      Stock based
       compensation         644,228  (644228)         --  (203,012)         --
                                        (a)                  (a)
      Gain on
       disposition of
       property and
       equipment             (1,696)              (1,696)               (1,558)
                          1,892,708            1,248,480               741,277

      Income from
       operations         3,111,353            3,755,581             2,754,738

      Other income
       (expenses), net       13,263               13,263                14,532
      Government grant      161,028              161,028                    --
      Finance cost           (1,952)              (1,952)               (4,199)
      Interest income       150,150              150,150               126,294

      Income before
       provision from
       income taxes       3,433,842            4,078,070             2,891,365

      Provision for
       current income
       taxes                 87,541               87,541               197,563
      Provision for
       deferred income
       taxes                340,216              340,216               190,633

      Net income          3,006,085            3,650,313             2,503,169

      Other
       comprehensive
       (loss) income         (7,968)              (7,968)              328,521

      Comprehensive
       income             2,998,117            3,642,345             2,831,690

      Basic and diluted
       net income per
       share                   0.55                 0.67                  0.54

      Basic and diluted
       weighted average
       number of shares
       outstanding        5,438,232            5,438,232             4,613,027

    (a) To adjust stock-based compensation charges

                                    For Three Months Ended December 31,

                            Actual   Adjust-   Adjusted    Adjust-    Actual
                           Results    ment      Results     ment     Results
                            2009                 2009                 2008

    Sales                 4,910,177            4,910,177            3,343,408
      Cost of
       sales              2,308,226            2,308,226            1,670,275

      Gross profit        2,601,951            2,601,951            1,673,133
                                53%                  53%                  50%
    Expenses
        General
         and
         admini-
         strative
         expenses           119,431              119,431              355,625
        Selling
         expenses           160,297              160,297               21,010
        Profess-
         ional fees          87,656               87,656               51,423
        Stock based
         compen-
         sation             151,127  (151,127)        --   (164,197)       --
                                        (b)                   (b)
        Gain on
         disposition of
         property and
         equipment             (955)                (955)                 (30)
                            517,556              366,429              428,028

        Income from
         operations       2,084,395            2,235,522            1,245,105

        Other income
        (expenses), net      17,950               17,950               13,995
        Government grant         30                   30                   --
        Finance cost         (1,952)              (1,952)              (3,326)
        Interest income      48,502               48,502               56,262

        Income before
         provision from
         income taxes     2,148,925            2,300,052            1,312,036

        Provision for
         current income
         taxes               74,759               74,759              197,563
        Provision for
         deferred
         income taxes       139,356              139,356              (45,526)

        Net income        1,934,810            2,085,937            1,159,999

        Other
         comprehensive
         (loss) income         (720)                (720)             (24,358)

        Comprehensive
         income           1,934,090            2,085,217            1,135,641

        Basic and
         diluted net
         income per
         share                 0.36                 0.42                 0.25

        Basic and
         diluted
         weighted
         average
         number of
         shares
         outstanding      5,438,232            5,438,232            4,613,027

    (a) To adjust stock-based compensation charges