SOURCE: Pansoft Company Limited

February 01, 2010 08:30 ET

Pansoft Completes Restructuring to Position Organization for Rapid Growth

JINAN, CHINA--(Marketwire - February 1, 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, at its management meeting held on Jan 31, 2010, that it has completed its most recent corporate restructuring and established six business departments and a subsidiary to support the Company's strategy for future growth, enhancing its core business and entering new growth areas. The Company also promoted Tingbin Zhang as Vice President of Large Client Service to maintain and strengthen key client relations. Both the restructuring and promotion are effective January 31, 2010. The corporate management meeting is held on routine basis to discuss and finalize corporate business operational and strategic decisions.

The new corporate structure includes four market segments and two functional departments with more efficient allocation of internal resources and effective utilization of management expertise and capability to maximize organic growth. The new established departments are:

--  PetroChina service
--  Sinopec service
--  Subsidiaries oil field service
--  Coal mining service
--  Solution development
--  Marketing and sales
--  Hong Kong branch (International headquarters)

"With the addition of oil field service departments, Pansoft will open 10 regional service offices in two to three years in different large oil fields and be able to leverage its existing relationship with PetroChina and Sinopec to sell the solutions already implemented in some oil fields to other subsidiaries so as to raise the reusability of Pansoft's software systems and solutions, as a part of business expansion strategy to further penetrate into oil and gas IT market in China. Our solution development department will serve as the core technology team for managing our intellectual capital accumulated from large project implementation, and will be responsible for creating new solutions and packages addressing new operational and management needs for new as well as existing customers. By establishing a solution business line, our goal is to raise the reusability of software developed by Pansoft so as to significantly improve our software development efficiency and new client development as part our corporate strategy to enhance Pansoft's position in the ERP market," said Guoqiang Lin, CEO of Pansoft.

"As we embark on our international expansion, a headquarter outside of China and an independent sales team are essential for the successful launch of our global campaign. Pansoft's Hong Kong branch is currently focusing on serving Chinese companies with operations in Middle East and Hong Kong regions and will gradually expand into other overseas areas following the international expansion path of its giant clients. We are confident the new corporate structure will position Pansoft to capture additional market share and raise the Company's brand awareness in the ERP sector," added Mr. Lin.

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.

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, 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.

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