SOURCE: China Crescent Enterprises, Inc.

China Crescent Enterprises, Inc.

June 03, 2009 09:00 ET

China Crescent Enterprises, Inc. Anticipates Continued Buy-In to Cover Short Positions as Company Remains on Regulation SHO Threshold List

DALLAS, TX--(Marketwire - June 3, 2009) - China Crescent Enterprises, Inc. (OTCBB: CCTR) today announced that the Company anticipates a continued buy-in to cover short positions as the Company has remained on the Regulation SHO "threshold security" list since the middle of May.

The threshold security list can be found at: http://www.nasdaqtrader.com/trader.aspx?id=RegSHOThreshold.

China Crescent recently reduced the number of issued and outstanding common shares on a ratio of 25:1. Since the reduction, the PPS has traded at a proportionally higher price than prior to the reduction. Any short sales prior to the reverse would now be holding short sales at a loss.

The Company has published a suggested fair value target price of approximately $0.30 PPS. This translates to an approximate $3 million market cap. With $40 million in annual sales and $600,000 in net income, a $3 million market cap would be more than 50% below the market capitalization of comparable systems integration companies based on average P/E ratios.

The Company's daily trading volume has represented approximately 10% of its current issued and outstanding. Management suspects that some portion of the daily trading volume includes new short selling intended to artificially increase the supply of stock and mitigate an upward pps trend while older short positions are covered. Given the regulatory pressure to enforce regulation SHO, management believes that any holder of a short position that has exceeded the regulatory time frame to deliver stock will ultimately have to buy in at a loss, and in turn, contribute to an increased demand for China Crescent stock that would contribute to an increased pps trend.

China Crescent recently completed an on-demand Webcast regarding Regulation SHO and its listing on the threshold security list. The Webcast is available at http://www.newmarkettechnology.com/webcast_ccse_20090520.htm.

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. (http://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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