Longtop Announces Share Repurchase Program and Human Resource Practices Change

HONG KONG, March 17, 2011 /PRNewswire-Asia/ -- Longtop Financial Technologies Limited ("Longtop") (NYSE: LFT), a leading software developer and solutions provider targeting the financial services industry in China, today announced that its Board of Directors has authorized a share repurchase program, under which Longtop may repurchase up to US$50.0 million in aggregate value of the outstanding ordinary shares of the Company, including ordinary shares represented by American depositary shares. The Company also announced that it has made changes to its human resource practices.

Under the share repurchase program, which will expire on March 31, 2013, the Company may, depending on market conditions, share price and other factors, make one or more purchases on the open market or in privately negotiated transactions, of up to US$50.0 million in aggregate value of the Company's outstanding shares. Such purchases under the program will be made in accordance with Rule 10b-18 under the U.S. Securities Act of 1933 and applicable law and subject to any required regulatory approvals. Any ordinary shares repurchased by Longtop will become part of its treasury shares.

Effective immediately, the Company has changed its human resource practices to facilitate significantly more of its staff being both employed and contracted directly by Longtop's China subsidiaries rather than contracted through third party staffing companies. Under the new practice at least 80% of Longtop's staff will be employed and contracted directly by Longtop's subsidiaries and less than 20% of its total staff will be contracted through third party staffing companies. The Company expects that this change in human resource practices will be margin neutral and will have no negative impact on operations, nor will it impact in a negative way the previously provided revenue and adjusted net income guidance for fiscal 2011 and 2012.

"Given Longtop's industry-leading operational cash flow of US$75 million generated for the first nine months of our fiscal 2011, we determined that a share buy-back of up to US$50 million was a good investment for our shareholders. I am also pleased that based on current discussions with our customers on their IT budgets for this year,  I am confident that Longtop's fiscal 2012 will be a year of healthy revenue growth and Longtop will continue to win market share, " said Weizhou Lian, Chief Executive Officer of Longtop. "After internal review, we have implemented, without any adverse impact on our business operations or financial forecasts, a simplified human resources structure that is in line with industry practice."

Conference Call

Longtop will host a conference call today to discuss this announcement, at 5:00 AM Pacific Time/8:00 AM Eastern Time on March 18, 2011 (Beijing/Hong Kong time: March 18, 2011, at 8:00 PM). The management team will be on the call to answer questions. The conference call will last for approximately one hour.

The dial-in numbers for the conference call are as follows:

Additionally, a live and archived web cast of this call will be available on Longtop's website at http://en.longtop.com/

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

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as ''believes,'' ''expects,'' ''anticipates,'' ''intends,'' ''estimates,'' the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include the effectiveness, profitability, and marketability of the company's solutions; the Company's limited operating history; its reliance on a limited number of customers that  continue to account for a high percentage of the Company's revenues; risk of payment failure by any of its large customers, which could significantly harm the Company's cash flows and profitability; future shortage or availability of the supply of employees; general economic and business conditions; the volatility of the company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Any projections in this release are based on limited information currently available to us, which is subject to change.

About Longtop Financial Technologies Limited

Longtop is a leading software development and solutions provider targeting the financial services industry in China. Longtop develops and delivers a comprehensive range of software applications and solutions with a focus on meeting the rapidly growing IT needs of the financial services institutions in China. Longtop is the highest ranked Chinese financial technology provider on the Global FinTech 100 survey of top technology partners to the financial services industry. Independent research firm IDC has also named Longtop the No.1 market share leader in China's Banking IT solution market and the No.2 market share leader in China's Insurance IT solution market in calendar year 2009. Headquartered in Beijing, Longtop has six solution delivery centers, three research and development centers and 95 ATM service centers located in 27 out of 31 provinces in China.

SOURCE Longtop Financial Technologies Limited