Prosten Technology Announces Third Quarter 2008 Results

Prosten Technology Announces Third Quarter 2008 Results

Robust Growth with Revenue Increase of 145%

HONG KONG, Feb. 9 /PRNewswire-Asia/ -- Highlights:

For the nine months ended 31 December 2008:
-- Revenue amounted to HK$91,943,000, representing 145% growth compared to
the corresponding period last year
-- Gross profit was HK$77,989,000, an increase of 134% as compared to
HK$33,268,000 for the same period of last year
-- Profit after tax rose 341% over the corresponding period in 2007, to
HK$28,499,000

China's leading wireless search services provider, Prosten Technology Holdings Limited (''Prosten''; Stock Code: 8026, and its subsidiaries, collectively the ''Group'') today announces the unaudited consolidated results for the nine months ended 31 December 2008.

Revenue for the nine month period was HK$91,943,000, an increase of 145% compared to $37,586,000 in the corresponding period last year. Gross profit increased by 134% to HK$77,989,000. Gross margin maintained at a relatively high level at 85%. Profit after tax grew significantly to HK$28,499,000, representing a year-on-year increase of 341%. Basic earnings per share increased significantly to HK4.8 cents (2007: HK1.1 cents). Excluding a HK$4,522,000 impact of fair value gain on convertible bonds, profit after tax would have been HK$23,977,000.

''Under the current deteriorating global economic environment, Prosten managed to post solid results for the nine months period,'' said Mr. Guan Mingjie, CEO of Prosten. ''During the third quarter, we continued to maintain solid operating performance and healthy cash position. Through our intense research and development efforts, the new data-mining based sales model also contributed to the sales growth and laid a solid foundation for the fiscal year of 2009.''

During the period under review, the Group remained focused on enhancing user experience through upgrade of its search engine. Growth in key measures such as average usage per user and rate of successful search demonstrated the Group's effort and commitment to growth and innovation in the mobile search field. Meanwhile, the Group developed a SMS interactive service system based on its patented search engine technology and secured a contract with one telecom operator. The new service system provides mobile users with intelligent electronic self-services, such as mobile value added services transaction and bonus points redemption.

Looking forward, Mr. Dennis Yip, Chairman of Prosten said, ''In 2009, we anticipate a slowdown in the growth of telecommunication industry in China and its relevant business policy will be adjusted. Through development of new channels and search products, we will continue to expand our service and product offerings to enable us to broaden revenue base. To enhance our leading position in the mobile search space, we will expand the scope of cooperation with China mobile while trying to establish new relationships with other operators. To weather through the current economic downturn, we will continue to sustain growth through enhanced competiveness, effective cost control initiatives and strengthened risk management measures as well as sufficient cash flow.''

About Prosten

Prosten's Group was established in 1989, and its holding company, Prosten Technology Holdings Limited, was listed on GEM (Stock Code: 8026) in March 2000. Through its wholly owned subsidiary, Unison Networking Services (Shanghai) Co., Ltd, Prosten became the sole provider of wireless music search services for China Mobile in January 2007. The search services are delivered through SMS and WAP, etc on portable devices and are available in all provinces and cities in China, with total users of more than 160 million.

For investor and media enquiries:

Prosten
Winsome Cheung
Tel: +852-2838-8873
Email: winsome.cheung@prosten.com.cn

PRChina
Henry Chik
Tel: +852-2522-1838
Email: hchik@prchina.com.hk

PRChina
Eric Song
Tel: +852-2522-1368
Email: esong@prchina.com.hk

Source: Prosten Technology Holdings Limited

CONTACT: Winsome Cheung, Prosten at +852-2838-8873 or
winsome.cheung@prosten.com.cn; Or Henry Chik, PRChina at +852-2522-1838 or
hchik@prchina.com.hk; Eric Song, PRChina at +852-2522-1368 or
esong@prchina.com.hk both for Prosten

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