Deer Consumer Products, Inc. Reports No Negative Corporate Developments, Announces Granting of Subpoena Power by New York Court Against Illegal Short Sellers

NEW YORK, June 17, 2011 /PR Newswire/ -- Deer Consumer Products, Inc. (Nasdaq: DEER) (website: http://www.deerinc.com/), a leading provider of "DEER" branded household consumer products to Chinese consumers and a vertically integrated manufacturer of small household and kitchen appliances for global customers, announced today that it has received calls from shareholders regarding the sudden drop in the price of its common stock due to false market rumors. Deer affirms that it is conducting its normal course of business and is not aware of any negative developments within the company or in its operations.

DEER GRANTED SUBPOENA POWER BY NEW YORK COURT

On March 28, 2011, Deer filed lawsuit against short sellers and fictitious bloggers alleging an orchestrated scheme to manipulate and depress Deer's stock. A New York State judge recently granted Deer permission to serve document subpoenas on various parties related to the lawsuit. Deer has sent out extensive notifications to various custodian banks and others and plans to subpoena other entities, including several known persons spreading rumors who are  believed to be engaged in illegal short selling and located in California. Deer will continue to pursue all legal actions to protect shareholders value.

AFFIRMS 2ND QUARTER DIVIDEND PAYMENT, AFFIRMS 2011 FINANCIAL GUIDANCE

As previously announced, Deer's Board of Directors approved a $0.05 per share quarterly cash dividend for the 2nd quarter ending June 30, 2011. The dividend will be paid on July 15, 2011, to shareholders of record at the close of business on June 30, 2011. Deer also affirms its previously issued financial guidance for 2011.

WARNING AGAINST CONTINUED NAKED SHORT SELLING IN DEER SHARES

As of June 16, 2011, Deer's common stock has been on the NASDAQ's Reg SHO list for 63 consecutive days, which suggests that a large number of Deer shares have not settled for 63 consecutive settlement days, reflecting continued illegal naked short selling in Deer's shares.

STRONG BALANCE SHEET

As of Q1/2011, Deer had shareholders' equity of approximately $150 million, or $4.45 per share in net assets and more than $28 million in cash without any long-term debts. Deer has sufficient cash on hand and has no plan to dilute our shareholders.

About Deer Consumer Products, Inc.

Deer Consumer Products, Inc. is a NASDAQ Global Select Market listed U.S. company with its primary operations in China. Deer has a 16-year operating business as well as a strong balance sheet. Operated by Deer's founders and supported by more than 100 patents, trademarks, copyrights and approximately 2,000 staff, Deer is a leading provider of "DEER" branded consumer products to Chinese consumers and a leading vertically integrated manufacturer of small home and kitchen appliances for global customers. DEER's product lines include series of small household and kitchen appliances as well as personal care products designed to make modern lifestyles easier and healthier.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer's filings with the Securities and Exchange Commission.

Contact Information:
Corporate Contact:
Ms. Helen Wang, President
Deer Consumer Products, Inc.
Tel: 011-86-755-86028300
Email: [email protected]      

SOURCE Deer Consumer Products, Inc.