SHENZHEN, China, May 20, 2009, Businesswire -- Jingwei International Limited (OTC Bulletin Board: JNGW.OB) (“Jingwei”) today announced financial results for the three months ended March 31, 2009. The Company plans to file its Quarterly Report on Form 10-Q today.

Recent Financial Highlights Include:

• Revenue decreased 33% to $3.9 million in 2009 from $5.8 million in the first quarter of 2008
• Gross profit decreased 59% to $1.5 million from $3.7 million in the first quarter of 2008
• Net income decreased 78% to $0.6 million from $2.8 million in the first quarter of 2008

Regis Kwong, Chief Executive Officer of Jingwei, stated “Even though revenue in our first quarter in 2009 was lower compared to last year, we are encouraged as the overall economic condition has been steadily improving in China. 3G in telecom has finally starting to move forward as operators have been issued licenses in the first quarter of 2009. We believe our investment and preparation for 3G-related marketing and software services will help us increase our share of the businesses with the telecom operators.”

Revenue for the first quarter 2009 revenue decreased 33% to $3.9 million from $5.8 million in the first quarter of 2008. Data mining services contributed $2.2 million in revenue in the first quarter of 2009, down from $3.3 million in the first quarter of 2008. Revenue from software services was $1.8 million, down 32% from $2.5 million in the prior year’s period.

Gross profit decreased 59% to $1.5 million in the first quarter of 2009 from $3.7 million in the first quarter of 2008. Gross margins were 39% compared to 64% in the prior year’s period, and level with the fourth quarter of 2008. As a result of experiencing pricing pressure, Jingwei provided additional functionality to customers and rendered additional add-ons to products. Consequently, costs of sales were significantly higher than in 2008.

For the three months ended March 31, 2009, gross margin related to data mining revenue was approximately 45%, and gross margin related to software services was approximately 30%.

Income from operations was $0.9 million, down 69% from $2.8 million in the first quarter of 2008. Operating margin was 22%, compared to 49% in the first quarter of 2008 and 9% in the fourth quarter of 2008. To retain existing customers and gain potential 3G projects, Jingwei representatives traveled frequently to visit customers and to collect newly-developed requirements, thereby increasing operating costs. Entertaining expenses have been significantly reduced, while depreciation and amortization diminishes operational profit.

During the first quarter of 2009, Jingwei’s effective income tax rate for its Chinese operations increased to 36% from 10%.

Net income decreased 78% to $0.6 million, or $0.04 per diluted share in the first quarter of 2009 from $2.8 million, or $0.16 per diluted share in the first quarter of 2008.

Business Update

• Data mining and database marketing services picked up pace during first quarter of 2009. Jingwei was able to gain momentum sales in the real estate, financial and retail sectors. A marketing campaign for McDonald’s commenced in Southern China, as did campaigns for Wangke Real Estate and an international bank.

About Jingwei International Limited

Jingwei International Limited ("Jingwei") is a leading integrated marketing company in the fast growing Chinese market. The Company specializes in data mining and customer relationship marketing services in China. Powered by advanced data mining technology and a proprietary database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies as well as international brands to reach their target audiences. The Company's services include market segmentation, customer trend, revenue analysis and direct marketing. Jingwei is evolving into an integrated marketing service provider with targeted campaigns via multi media channels including: interactive mobile, telemarketing, direct mail and new media. For more information, please visit the Company's web site: http://www.jingweicom.com.

Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

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