Trading Statement

Geong International Limited

("Geong" or "the Company")

Trading Update

GEONG (AIM: GNG), the AIM listed China based provider of enterprise content management (ECM) software and solutions today releases a trading update on its unaudited results for the year ended 31 March 2010.

Pre-tax profits will be moderately ahead of market expectations, at approximately £2.3m, some 35% ahead of the 2009 financial year. The cash position has improved strongly and the Group ended the financial year with net cash of £6.3m compared to £3.6m in FY2009. Total revenues for the year ended 31 March 2010 are expected to be around £13.5m, down approximately 9%.

The slight decline in revenue is solely attributable to the Group's strategy of reducing low margin third-party product revenue; in contrast, the Group's own product and services business, which generates margins from 40% to 60%, grew by 16%. The Group's strategy of focusing on cash collection and margins, eschewing volume growth, is systematically progressing with overall margins having risen from 40% in the last financial year to approximately 43%.

It is Board's intention to be judicious in prioritising revenue growth and consolidate these substantial improvements at current levels as the SaaS business model is rolled out and takes hold over the next two to three financial years. Geong has an excellent product and service offering and a clear strategy to extend the Company's strong presence in banking and automotive sectors to other markets such as insurance and telecommunication which also have long-term fundamental growth potential. Geongs's "Go Deep and Broad" strategy is being rolled out in second tier cities with continuing success.

The Group continues to trade profitably, is cash generative and cash conversion is steadily improving. The Group has no gearing and an order book of £14m, 32% ahead of the same period last year, of which 40% is recurring revenue. Against this encouraging background the Directors are confident that the Company is well positioned to achieve a strong result for the current financial year and they look to the future with confidence.

For further information, please contact: GEONG International Limited www.geong.com Tel: +86 10 5222 0999 Henry Tse, Chairman Weidong Wang, CEO Amit Thakar, CFO Seymour Pierce Tel: +44 (0)20 7107 8000 Nandita Sahgal