SOURCE: China Crescent Enterprises, Inc.

China Crescent Enterprises, Inc.

June 03, 2009 16:31 ET

China Crescent Enterprises, Inc. Anticipates Reporting Increased Earnings per Share in Q2 '09

CFO Releases Letter to Shareholders to Review Improving Operational Maturity

DALLAS, TX--(Marketwire - June 3, 2009) - China Crescent Enterprises, Inc. (OTCBB: CCTR) today released a letter to shareholders from the Company CFO, Philip J. Rauch. Following the Company's recent recapitalization and first quarter financial report, Mr. Rauch has provided a summary explanation of the Company's ongoing efforts to mature and standardize the operations listed publicly only two years earlier. The letter is included in its entirety below.

Dear Fellow Shareholders -

China Crescent Enterprises continues to improve its overall operating margins. Notably, while first quarter revenue was down compared to the same period last year, net income was up. This is a healthy trend and not an accidental one. Management continues to work to improve the Company's standard operating procedures with the objective of improving operating margins. As margins improve, the Company improves its earnings per share potential.

Earlier this year, China Crescent's wholly owned subsidiary in China, Clipper Technology, increased its ownership in the majority owned Chinese operation, Clipper Huali, by twenty five percent. This increase in ownership will increase the percentage of net income from Clipper Huali operations included in the China Crescent consolidated financial statement by fifty percent. This increase in net income included in the China Crescent consolidated financial statement can further improve the Company's earnings per share potential.

Recently, the Company launched its outsourcing services business line and subsequently signed its first outsourcing contract. The improved earnings potential of the outsourcing services business line is yet another factor that can improve the Company's earnings per share potential.

Approximately two weeks ago, the Company completed a recapitalization of its common stock reducing the number of issued and outstanding shares on a rate of 25 to 1. The reduction in issued and outstanding shares correspondingly further increases the earnings per share. Even before the recent measures mentioned above to improve operational performance, China Crescent was already producing a small profit. Besides the measures mentioned herein to improve profits, any profit will now be measured against a reduced number of shares, thus increasing the earnings per share.

China Crescent has established substantial revenue and has the potential through organic sales and acquisitions to further increase upon its revenue base. Management plans to aggressively pursue revenue growth, but the priority will remain to continually improve operational maturity and in turn, earnings per share. The reduced issued and outstanding will better reflect the Company's earnings on a per share basis and should in turn enhance the potential PPS.

Best Regards,

Philip J. Rauch
CFO
China Crescent Enterprises

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.

Contact Information