EARNINGS SHOW IMPROVEMENT IN SECOND QUARTER OF 2009

SHENZHEN, China, Aug. 13 /Xinhua-PRNewswire-FirstCall/ -- Jingwei International Limited (OTC Bulletin Board: JNGW - News; "Jingwei"), one of the leading providers of data mining and customer relationship marketing services in China, today announced financial results for the three month and six month periods ended June 30, 2009. The Company plans to file its 10-Q on Friday August 14, 2009.

Recent Financial Highlights Include:

• Net Income increased 3% to $0.8 million in the second quarter compared to the first quarter in 2009;
• Revenue increased 4% to $4.1 million in the second quarter compared to the first quarter in 2009;
• Net income decreased 76% to $1.4 million in the first six months of 2009 compared to the same period last year
• Revenue in the first six months of 2009 decreased 45% to $8.0 million compared to the same period last year
• Gross margin in the first half of 2009 was 37% compared to 59% in the same period last year
• Second quarter 2009 net income decreased 73% to $0.8 million compared to the second quarter last year
• Second quarter 2009 gross margin was 36% compared to 56% in the second quarter last year

Regis Kwong, Chief Executive Officer of Jingwei International stated, ”We are encouraged by the improvement of revenue and net profit in the second quarter of 2009 from the previous quarter. With the real estate, retail, and consumer electronics sectors beginning to show signs of recovery, as well as the continued deployment of wireless 3G, we are experiencing increasing demand for our data mining and software services. We are looking forward to continued improvement in demand for our services. ”.

Second Quarter Ended June 30, 2009

Revenue for the second quarter decreased 53% to $4.1 million from $8.8 million in the second quarter of 2008.
Gross profit decreased 69% to $1.5 million from $4.9 million in the second quarter of 2008. Gross margin in the quarter was 36% compared to 56% in the prior year’s period.

Income from operations was $0.6 million, down 83% from $3.6 million in the second quarter of 2008. Operating margin was 15% in the second quarter of 2009 compared to 40% during the second quarter of last year.

Net income decreased 73% to $0.8 million, or $0.05 per diluted share in the second quarter of 2009 from $3.0 million, or $0.18 per diluted share in the second quarter of 2008.

Please refer to the table below for the breakdown of segment performance in the three month periods ended June 30, 2009 and 2008.

Six Months Ended June 30, 2009

For the six months ended June 30, 2009, revenue decreased 45% to $8.0 million from $14.5 million in the first six months of 2008. During this same time period, gross profit decreased 65% to $3.0 million from $8.6 million. Gross margin is 37% compared to 59% in the same period last year. Income from operations decreased 78% to $1.4 million from $6.4 million in the first half of 2008, and net income decreased 76% to $1.4 million, or $0.08 per diluted share, from $5.8 million, or $0.34 per diluted share, in the first six months of 2008.

Please refer to the table below for the breakdown of segment performance in the six month periods ended June 30, 2009 and 2008.

Balance Sheet

As of June 30, 2009, the Company had approximately $7.3 million of cash and no long-term debt.

Business Update

We have seen slight improvements in our business during the second quarter of 2009. Although our data mining business continued to experience slowdowns from the private business sectors, demand for our software in the telecom sectors has improved.
In data mining, due to stimulus measures implemented by the Chinese government, we have seen increasing activities in real estate marketing as this sector is the first to benefit from this measure. Revenue from the real estate sectors account for a large share of our data mining revenues. However, other business sectors such as finance and retail were still very cautious on spending in marketing and advertising. With our current large accounts cutting back significantly on their marketing budgets, the data mining revenue share has dropped slightly compared to our previous year.
On the other hand, we have seen increased demand for our software services in the telecom sector as operators are now in full gear for 3G deployment. As some of our trials have started to transition into commercial deployments, we experienced increase revenue shares from the software segment. We supplied application software to telecom operators for their 3G services. One particular significant win for us was the Unicom Operation Analysis Software System, where we are the sole provider of the systems software for the Guangzhou branch of China Unicom operations. We expect this trend to continue as the subscriber base expands in China.
Going forward, in addition to the real estate sector, we anticipate that the retail and consumer electronics sectors will be the first to rebound in demand for marketing services. We have experienced an increase in orders for our data mining services from these two sectors in July and August of 2009.

CONFERENCE CALL
Management will host a conference call today at 9:00 a.m. EDT to discuss financial results.
To access the conference call within the U.S., dial: 800.860.2442. For international/toll access, dial: +1.412.858.4600. The Pass Code is : Jingwei, Parties should ask for Jingwei. Please dial in a few minutes before the conference call is scheduled to begin.

About Jingwei International Limited

Jingwei International Limited ("Jingwei") is a leading provider of data mining and customer relationship marketing services in the fast growing Chinese market. 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 global financial crisis, effects 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. For more information, please contact:

Regis Kwong
Tel: 86-75586319436
Email: regiskwon@gmail.com / vanessa@jingweicom.com

Source: Jingwei International Limited