SOURCE: China Crescent Enterprises, Inc.

December 12, 2008 09:50 ET

China Crescent Enterprises, Inc. Announces Plans to Increase Profitability From Systems Integration Operations in China

DALLAS, TX--(Marketwire - December 12, 2008) - China Crescent Enterprises, Inc. (OTCBB: CCSE) today announced plans for the Company to increase its stake and profitability in the Chinese market. United States gross domestic product is expected to shrink by 0.8% in 2009, while China will grow at 8.8%. China Crescent is a U.S. company that provides technology products and services in China, with its primary office in Shanghai. China Crescent has reported $30.3 million in revenue for the first nine months of this year and reported $40 million in revenue in 2007.

As part of the initiative to grow its presence and profitability in China, China Crescent plans to increase its ownership in one of its Chinese operating subsidiaries by 25%. China Crescent currently has a 51% ownership in the Chinese subsidiary and plans to acquire the increased position from the Chinese operating subsidiary's minority shareholder. That subsidiary currently focuses on hardware and software systems integration. Through the Company's increased ownership in the Chinese operating subsidiary, net income would correspondingly increase as the Company continues to mature. China Crescent has focused on the growing need in China for computer hardware and software since its inception in 2005. China, as with other emerging markets, has a ravenous appetite for hardware and support services to build out its nationwide computer infrastructure.

Forbes Says Look East for Growth

Forbes recently published an article addressing the need for U.S.-based companies to look East, specifically to China and India for continued growth. China's 2009 GDP is projected to be 8.8%, compared to the United States' 0.8%. During past financial crises, China and India have not had strong enough purchasing power to absorb the financial stress of other international markets. But with a rapidly increasing middle class in those countries, expected to reach 290 million in China by 2011, that is changing.

To read the article in its entirety, go to: http://www.forbes.com/2008/10/28/china-india-growth-oped-cx_rm_1029meredith.html.

Year-to-Date Financial Performance

China Crescent recently conducted its third quarter financial review Webcast. China Crescent reported $30.3 million in revenue for the first nine months of 2008 compared to $27.9 million in revenue for the same period last year. Notably, net income increased over 1,300 percent to $516,999 for the first nine months of 2008 compared to $36,010 for the same period last year. The Company's 2008 revenue objective is $50 million. An archive of the Webcast is available at www.chinacrescent.com.

Corporate E-mail Updates

To be added to China Crescent's e-mail database to receive company updates or to obtain more information on the Company, please send an e-mail to ir@chinacrescent.com or call 214-722-3065.

About China Crescent Enterprises, Inc. (www.chinacrescent.com)

China Crescent Enterprises, Inc. is a technology leader in the rapidly developing Chinese market specializing today in software engineering, high quality software development and digital multimedia outsourcing services delivered to customers globally. At the same time, the firm is a systems integrator and value added reseller of major global hardware brands in the Chinese domestic market.

Headquartered in Dallas with operations in Shanghai and Beijing, China Crescent bridges the gap between Western and Eastern business cultures to assist western clients in realizing the advantages of the high quality, low cost technology products and services available from China. China Crescent also assists Western clients in localizing products and services to realize the tremendous growth potential available by expanding into the Chinese Market.

"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause China Crescent's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.

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