SOURCE: Winland Online Shipping Holdings Corp.

November 16, 2009 07:00 ET

Winland Online Shipping Reports 2009 Third Quarter Results Continued to Be Affected by Global Economic Slowdown

Taking Advantage of Market Conditions the Company Completed $20.7 Million Purchase of Handysize Vessel

DALIAN, THE PEOPLE'S REPUBLIC OF CHINA--(Marketwire - November 16, 2009) - Winland Online Shipping Holdings Corporation (OTCBB: WLOL), a PRC-based global shipping company which also owns and operates China's largest shipping website portal "Shipping Online" (www.sol.com.cn), announced today that the Company's revenues continued to be affected by the global economic slowdown and the depressed Global Shipping Market.

The Company reported revenues decreased 47% to $11,841,798 in the third quarter of 2009 compared with $22,302,487 in the same period in 2008. Net income of $5,298,476 in the 2008 third quarter decreased 122% to a loss of $(1,169,993) in the 2009 third quarter.

For first nine months of 2009, the Company reported revenues of $36,368,521 compared with $70,552,447 in the same period in 2008, a decrease of 48.5%. A net loss in the first nine months of 2009 of $(5,326,597) compared with net income of $17,422,191 in the same period in 2008.

The Company said that the extent of the worldwide economic slowdown was apparent in the 67% decrease in the Baltic Dry Index at of the end of the first nine months this year compared to the same period in 2008. While results in the quarter were hurt by the continuing downturn, the Company continued to push ahead with its comprehensive shipping and logistics services with Shipping Online to expand market share. As part of its plan to continually expand its shipping capacity, it also pursued an opportunity during the quarter to close on a below market $20,700,000 purchase of a 2003 handysize vessel utilizing bank financing for $14,490,000 of the purchase price.

Ms. Xue Ying, CEO of the Company, commented, "I am very pleased with our success in reducing and managing costs during this difficult period, and even more so with the successful purchase financing we achieved which I believe is a reflection of confidence in our financial position and the future prospects for the Company in a stronger economy."

"Of particular significance in the quarter," she added, "was the increase we saw in online shipping activity, where we continue to be a leader in modernizing the Chinese shipping industry. When global economic activity begins to pick up more strongly, I have no doubt we will be well positioned to capitalize on the improvement with a stronger fleet and the advantages provided by our online leadership."

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Company Description

Based in the port city of Dalian, in the People's Republic of China (The PRC), Winland Online Shipping Holdings Corporation is a global shipping company with a fleet of 13 Company-owned vessels, mainly in the handysize and MPP (Multi-Purpose Vessel) category, engaged in international bulk cargo transportation. The Company also owns and operates "Shipping Online" -- www.sol.com.cn -- which is China's largest shipping industry portal. Helping to transform the shipping industry in China, the site functions as not just an information provider, but as a business platform, providing on-line and off-line international shipping and logistics services, such as bulk cargo chartering, container booking, shipping agents, ship trading and building, spare parts supplies, crew recruitment as well as shipping news and data.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive services and products, pricing and new technology; changes in customer preferences and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of doing business, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

No securities regulatory authority has either approved or disapproved the contents of this news release.

Winland Online Shipping Holdings Corporation Results of Operations for the
Three Months Ended September 30, 2009 Compared With the Three Months Ended
September 30, 2008 (in U.S. dollars, except otherwise as indicated)

              For The Three Months Ended September 30,
               --------------------------------------
                      2009                2008         Increase (Decrease)
               ------------------  ------------------  -------------------
                            % of                % of
                 Amount    Revenues    Amount  Revenues  In Amount    In %

Revenues        11,841,798  100.0%  22,302,487  100.0% (10,460,689)  -46.9%
Vessel
 operating
 expenses        9,586,920   81.0%  11,277,732   50.6%  (1,690,812)  -15.0%
Service costs      505,173    4.3%   1,418,584    6.4%    (913,411)  -64.4%
Depreciation
 and
 amortization    1,770,878   15.0%   1,856,199    8.3%     (85,321)   -4.6%
General and
 administrative
 expenses          748,348    6.3%   1,702,528    7.6%    (954,180)  -56.0%
Selling
 expenses           88,907    0.8%           -    0.0%      88,907     0.0%
Interest
 expense, net      (43,478)  -0.4%    (266,404)  -1.2%     222,926   -83.7%
Other expense,
 net              (149,229)  -1.3%    (505,367)  -2.3%     356,138   -70.5%
Income tax
 expense           (16,049)  -0.1%     (37,902)  -0.2%      21,853   -57.7%
Net (loss)
 income from
 discontinued
 operation        (102,809)  -0.9%      60,704    0.3%    (163,513) -269.3%
Net (loss)
 income         (1,169,993)  -9.9%   5,298,476   23.8%  (6,468,469) -122.1%
Weighted
 Average
 Shares
 Outstanding
  - Basic      130,000,000         119,465,761          10,534,239     8.8%
  - Diluted    130,000,000         119,465,761          10,534,239     8.8%
Net (loss)
 income per
 share
  - Basic            (0.01)               0.04               (0.05) -125.0%
  - Diluted          (0.01)               0.04               (0.05) -125.0%



Winland Online Shipping Holdings Corporation Results of Operations for the
Nine Months Ended September 30, 2009 Compared With the Nine Months Ended
September 30, 2008 (in U.S. dollars, except otherwise as indicated)

              For The Nine Months Ended September 30,
               --------------------------------------
                      2009                2008         Increase (Decrease)
               ------------------  ------------------  -------------------
                            % of                % of
                 Amount    Revenues   Amount   Revenues  In Amount    In %

Revenues        36,368,521  100.0%  70,552,447  100.0% (34,183,926)  -48.5%
Vessel operating
 expenses       30,757,559   84.6%  39,994,317   56.7%  (9,236,758)  -23.1%
Service costs    2,488,842    6.8%   4,012,632    5.7%  (1,523,790)  -38.0%
Depreciation and
 amortization    5,513,270   15.2%   5,563,243    7.9%     (49,973)   -0.9%
General and
 administrative
 expenses        2,057,126    5.7%   2,492,468    3.5%    (435,342)  -17.5%
Selling
 expenses          253,064    0.7%           -    0.0%     253,064     0.0%
Interest
 expense, net     (131,978)  -0.4%    (540,129)  -0.8%     408,151   -75.6%
Other expense,
 net              (218,667)  -0.6%    (468,069)  -0.7%     249,402   -53.3%
Income tax
 expense           (49,060)  -0.1%    (133,954)  -0.2%      84,894   -63.4%
Net (loss)
 income from
 discontinued
 operation        (225,552)  -0.6%      74,556    0.1%    (300,108) -402.5%
Net (loss)
 income         (5,326,597) -14.6%  17,422,191   24.7% (22,748,788) -130.6%
Weighted
 Average
 Shares
 Outstanding
  - Basic      130,000,000         111,135,766          18,864,234    17.0%
  - Diluted    130,000,000         111,135,766          18,864,234    17.0%
Net (loss)
 income per
 share
  - Basic            (0.04)               0.16               (0.20) -125.0%
  - Diluted          (0.04)               0.16               (0.20) -125.0%

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