SOURCE: Pansoft Company Limited

July 15, 2010 08:30 ET

Pansoft Completes Acquisition of Beijing ITLamp Technology Co., Ltd.

JINAN, CHINA--(Marketwire - July 15, 2010) - Pansoft Company Limited (NASDAQ: PSOF) ("Pansoft" or the "Company"), a leading ERP software service provider for the oil and gas industry in China, today announced that it has completed the acquisition of Beijing ITLamp Technology Co., Ltd ("ITLamp") for approximately $3.1 million. Approximately $1.2 million of the purchase price was paid in cash, and the balance will be paid through the issuance of $1.9 million in restricted Company stock with a three-year vesting period. Unaudited 2009 revenue and net income for ITLamp were $0.99 million and $0.40 million, respectively.

ITLamp is a leading IT solution and service provider serving oil companies in the Tarim oilfield, with innovative products such as a digital desktop office platform, a material supply system, and an analytical test system. These products are fully implemented at major sites of clients, including PetroChina Tarim Oilfield Company and Tarim Northwest Exploration Co., Ltd. PetroChina Tarim Oilfield Company is located in the Tarim basin of Xinjiang province, the largest hydrocarbon-bearing basin in China. According to recent estimates, the Tarim basin has approximately 16 billion tons of proven oil and gas reserves, including 8 billion tons of crude oil reserves and 10 trillion cubic meters of natural gas reserves. ITLamp's revenue in the 2010 calendar year is expected to be approximately $1.4 million.

ITLamp now serves as a subsidiary of Pansoft, operating as a specialized oilfield software solution and system integration service provider for the entire oilfield market in Xinjiang province, which possesses the largest number of oilfields in China. ITLamp's operations have been fully integrated into Pansoft and will enhance the Company's technical team and business solutions in oilfield management and operations.

"We are pleased to have closed the recently announced acquisition on schedule," said Hugh Wang, Chairman of the Board. "Pansoft will leverage ITLamp's experienced team and oil production management solutions to expand our coverage to other major oilfields in China. We believe Pansoft's expanded solution platform and customer base will enable us to further grow revenues and margins."

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, delivery, invoicing, and inventory control and customer relationship management. For more information, visit http://www.pansoft.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements concerning Pansoft Company Limited, which include but are not limited to, statements regarding Pansoft's acquisition strategies, timing of development projects and efforts to achieve business growth, improvement on profit margin and anticipated revenue growth. 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 and market acceptance of products, additional competition from existing and new competitors, changes in technology or product techniques, the Company's ability to successfully integrate its business acquisition, 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 detailed in the Company's reports filed with the Securities and Exchange Commission. Pansoft Company Limited undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

Contact Information

  • Contact:
    Pansoft Company Limited
    Allen Zhang
    Chief Financial Officer
    Phone: +86-531-8887-1159
    Email: allen.zhang@pansoft.com

    CCG Investor Relations Inc.
    Mr. Crocker Coulson
    President
    Phone: +1-646-213-1915 (New York)
    Email: crocker.coulson@ccgir.com