SOURCE: Pansoft Company Limited

December 12, 2008 07:00 ET

Pansoft Company Limited Issued the Chairman's Letter to Shareholders

JINAN, CHINA--(Marketwire - December 12, 2008) - Pansoft Company Limited (NASDAQ: PSOF) issued a letter to the shareholders from Mr. Hugh Wang, Chairman of the Board.

Dear Shareholders,

I am delighted to take this opportunity to share my enthusiasm with you. This is my first letter addressed to our shareholders with the intention to begin a new episode of our communications with Pansoft's shareholders.

The credit crisis has led to recessions in many countries around the world. Several developed countries and China have announced simulative packages to revive the economy. However, this global economic contraction will have to run its course, and it will take some time for the world economy to grow again.

As a result of the global financial crisis, capital markets around the world have declined significantly in the last several months, and Pansoft is not immune to the macro environment. On Nov 18, 2008, our stock price went down to $1.30, which was lower than our cash per share and which I believe does not reflect accurately the value of our company.

Despite the current economic circumstances, Pansoft is committed to enhance shareholder value by continuing its healthy organic growth and pursuing potential strategic transactions. I believe the company has great growth prospects in 2008 and beyond. I am pleased to announce that our full-year 2008 revenue is expected to increase approximately 20% compared to prior year. This top-line increase is more optimistic than our recent forecast just a month ago. More importantly, a higher 2009 revenue growth budget plan will be submitted to the board for approval this month.

Another avenue to facilitate the growth of Pansoft is from the government. As the first software corporation in Shandong province got listed on NASDAQ, Pansoft attracted great attention from the local government, which endorsed its support for the company's future growth. The government will also extend a financial award to Pansoft and help promote the company. We believe with the government's support, our company will continue to increase its brand awareness and maintain its leading position in the large business oriented software services market.

In addition to the growth prospects, I would also like to update you on our board meeting that will be taken place on December 13, 2008. We will discuss and finalize Pansoft's business strategies for the next three years and the 2009 budget plan. Also, we will make a decision regarding the establishment of Pansoft's Hong Kong branch. Finally, we will approve a major contract with one of our large customers (details will be released once we sign the contract in the near future).

Another important agenda on the board meeting is the establishment of an IR program. We are currently working on a new website that will be more user-friendly and contain all pertinent information of our company and the progress we are making. We are also working with IR professionals to develop a clear strategy to communicate effectively with the investment community. Several exciting events in our 2009 IR program will be announced.

While it is certainly an economic downturn, I am confident that Pansoft can weather the storm. I assure you that the entire management team is working hard to maximize shareholder values.

Thank you for your continued support of Pansoft and happy holidays!

Hugh Wang

Chairman of Pansoft Company Limited

Cautionary Statement

This letter may contain forward-looking statements concerning Pansoft Company Limited. These forward-looking statements include, without limitation, references to future revenue growth, financial award from government, establishment of branch office and customer contracts. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, and additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors and other information disclosed in the Company's reports filed with the Securities and Exchange Commission, including but are not limited to, the Company's most recent quarterly reports on Form 10-Q. Pansoft Company Limited undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this letter.

About Pansoft Company Limited

Pansoft is a leading enterprise resource planning ("ERP") software and professional services provider for the oil and gas industry in China. Its ERP software offers comprehensive solutions in various business operations including accounting, order processing, delivering, invoicing, inventory control and customer relationship management.

Contact Information

  • For further information, please contact:

    Pansoft Investor Contact:
    Allen Zhang
    Tel: 531-88871166
    Email: Email Contact

    Great Wall Research LLC
    Sheena Shen
    Tel: 203-252-7266
    Email: Email Contact