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China Crescent Enterprises, Inc.: China Crescent Enterprises, Inc. Reduces Potential Issuance of New Common Stock in Strategy t

^{Published on 2009-03-19 08:17:24, Last Modified on 2009-11-03 18:56:31 - Market Wire}
 

DALLAS, TX--(Marketwire - March 19, 2009) - China Crescent Enterprises, Inc. (OTCBB: [ CCSE ]) today announced that the Company plans to effectively reduce the number of new common shares that can be issued under the current majority shareholder's preferred convertible stock agreement. Preferred convertible stock can be converted into common stock and increase the number of issued and outstanding common shares. Such increases or even the possibility of a potential increase in the number of issued and outstanding shares may have a negative effect on share price.

The Company is currently negotiating a plan whereby its majority shareholder will exchange its current preferred convertible stock for two new classes of preferred stock. The larger of the two classes will be non-convertible. Therefore, the potential issuance of new common shares will be reduced accordingly. The second class of preferred stock, the smaller of the two classes, will be designated for a future conversion into common stock to be used in a stock dividend distribution to the majority shareholder on a pro rata basis.

The majority shareholder, NewMarket Technology, Inc., is comprised of over 10,000 individual shareholders. The future conversion and stock dividend distribution of China Crescent common stock to the majority shareholder will substantially increase the number of China Crescent shareholders. Such an increase in the number of shareholders could potentially have a positive effect on the trading volume of China Crescent common stock.

The Company filed a preliminary information statement on January 9, 2009 regarding a comprehensive recapitalization of the Company intended as part of a strategy to build investor confidence and boost share price. Management believes the current share price does not reflect the Company's operational performance. The Company's trailing 12 months revenue as of September 2008 was approximately $42 million with a net income of about $900,000. The Company's annual revenue in 2007 was $40 million with a net income of $400 thousand.

The Company anticipates a timely filing of a definitive information statement detailing the Company's recapitalization plans to include the exchange of the existing preferred stock held by the majority shareholder for the two new classes of preferred stock highlighted in this release. Following the filing of the definitive information statement, management plans to release further information regarding its strategy to build investor confidence and boost share price.

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.