Yangtze Telecom Corp.

Yangtze Telecom Corp.

November 28, 2007 22:22 ET

Yangtze Telecom Announces 3rd Quarter 2007 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2007) - Yangtze Telecom Corp. (TSX VENTURE:SMS) today reported its financial results for the third quarter ended September 30, 2007. The Company operates through two subsidiaries in China - wholly-owned Wuhan Chengxi Information Technology Company Ltd. ("ChengXi") and 65%-owned China United Telecom Technology Company ("UTT"), and one subsidiary in Mongolia - NBC Co. Ltd. All amounts are in Canadian dollars unless otherwise noted.

Revenue for the quarter ended September 30, 2007 was $195,000, a 29% decrease from $274,000 in the same quarter last year on a comparable basis for net revenue accounting in the education business. Current quarter revenue consists of $17,000 from UTT, $39,000 from NBC and $139,000 from ChengXi. Compared with the 2nd quarter of 2007, NBC's revenue increased by 160% while Chengxi recorded a decrease of 1% and UTT, a decrease of 80%, due to continued weakness in both the Education and Credit Management System business. During the quarter, the Company registered four hundred and seventy-eight new wireless TV subscribers, compared with two hundred and eighty-seven in the last quarter.

Head office expenses in Vancouver during the quarter were $175,000 because of higher professional fees, compared with $155,000 in 3Q 2006 or $152,000 as the 2006 quarterly average. Vancouver head office expenses were allocated to the three subsidiaries in the following ratios: UTT, 50%; NBC and Chengxi, both 25%. The Company recorded a net loss of $362,000 for the quarter compared with a loss of $342,000 in the last quarter or a loss of $244,000 in 3Q 2006.

The cash balance of the Company, as at September 30, 2007, was $213,000, a decrease of $94,000 from a balance of $307,000 as at June 30, 2007. The net loss for the quarter was largely financed by changes in working capital. As announced on November 23, 2007, the Company subsequently closed a non-brokered private placement of 5,890,000 shares at $0.17 per share for total proceeds of $1,001,300.

"Due to continued deterioration in the education business and the large investment required in mass marketing of the credit information business, we have decided to discontinue the UTT operations by the end of year 2007," said Kevin He, CEO of Yangtze Telecom. "At the same time, we have withdrawn from negotiation to acquire an interest in Beijing Haidian TV, principally because competing bidders have inadvertently raised the cost of acquisition. While these developments may seem regrettable, this would enable management to concentrate our efforts in pursuing opportunities that maybe closer to our roots in telecom/mobile value-added services."

Yangtze Telecom's third quarter 2007 financial reports, and Management Discussion and Analysis are accessible on the Company's web site (www.yangtzetelecom.com) and on SEDAR (www.sedar.com).

About Yangtze Telecom Corp.

Yangtze Telecom Corp. is a provider of telecom value-added services and wireless digital TV services for consumers and businesses in China and Mongolia. The Company is focused on business applications utilizing a combination of satellite platforms, the internet, and wireless data communication technologies. Key applications to date are the Credit Management System, Wireless digital broadcasting and Distance Learning. For further information on Yangtze Telecom Corp., please visit the Company's web site at www.yangtzetelecom.com.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of, the contents of this press release.

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