Longtop Financial Technologies Limited Announces Unaudited Financial Results for the Quarter Ended September 30, 2007

Total Revenues Reach US$20.2 million, Up 80.3% Year-on-Year over Adjusted
        Revenues Due to Continued Diversification of Customer Base



XIAMEN, China, Nov. 19 /Xinhua-PRNewswire/ -- Longtop Financial Technologies Limited ("Longtop") (NYSE: "LFT"), a leading software developer and solutions provider targeting the financial services industry in China, announced today unaudited financial results for the quarter ended September 30, 2007, which is the second quarter of its fiscal year ending March 31, 2008.

  FINANCIAL HIGHLIGHTS FOR THE SEPTEMBER 30, 2007 QUARTER:

   -- Total revenue was US$20.2 million, an increase of 80.3% year-on-year
      ("YoY") compared to Adjusted Revenues for the quarter ended September
      30, 2006.
   -- Software development revenues amounted to US$18.2 million, up 115.6%
      YoY compared to 2006 Adjusted Software Development Revenues for the
      quarter ended September 30,, 2006.
   -- Adjusted Income from Operations was US$13.6 million, an increase of
      88.2% YoY.
   -- Adjusted Net Income was US$11.6 million, or US$0.28 per fully diluted
      share.



Explanation of the Company's Adjusted (ie non-GAAP) financial measures and the related reconciliations to GAAP financial measures are included in the accompanying "Non-GAAP Disclosure" and the "Consolidated Adjusted Statements of Operations."

Commenting on the results, Weizhou Lian, CEO of Longtop, remarked:

"During this past quarter we demonstrated significant revenue and profit growth by leveraging our leading portfolio of software and services to leading financial services companies in China. We also successfully diversified our revenue base by generating strong growth within national and city commercial banks, as well as insurance companies. We are well positioned to benefit from the rapid development and evolution of China's financial services industry."

  RECENT OPERATIONAL HIGHLIGHTS:

   -- On October 24, 2007 Longtop successfully completed its IPO on the New
      York Stock Exchange of 9,000,000 American Depositary Shares ("ADSs"),
      which generated net proceeds of approximately US$143 million for
      Longtop. Each ADS represents one ordinary share.
   -- Demonstrated successful customer diversification as revenues from the
      Company's two largest customers, which increased year-on-year,
      accounted for 31.6% of software development revenues in the September
      30, 2007 quarter, compared to 61.5% for the same period of 2006.
   -- In October 2007, Longtop closed the acquisition of FEnet, a leading
      provider of business intelligence solutions to the financial and
      insurance industry in China. FEnet added 261 employees to Longtop's
      1,094 existing employees as of September 30, 2007.

  Weizhou Lian continued:


"On October 24th we successfully listed on the New York Stock Exchange, and I would like to thank our customers and employees, and our investors Cathay and Tiger Global, for their dedication and support. As China's financial institutions seek to modernize and become increasingly competitive, I believe that Longtop is entering a new and exciting era of opportunity in which our unique understanding of China's financial services sector combined with our comprehensive product offering puts us in an excellent position to grow in this dynamic business environment."

  SEPTEMBER 30, 2007 QUARTER DETAILED FINANCIAL RESULTS
  Adjusted Revenues
                            Three months ended   Six months ended
Adjusted      September  September  % Change  September  September  % Change
 revenue       30, 2006   30, 2007 (Decrease)  30, 2006   30, 2007 (Decrease)
Software
 Development     8,465     18,249    115.6%    14,316     26,489     85.0%
Other Services   2,739      1,951    (28.8%)    6,126      5,241    (14.4%)
Total Adjusted
 Revenue        11,204     20,200     80.3%    20,442     31,730     55.2%




Total revenues for our second fiscal quarter were US$20.2 million, compared to Adjusted Revenues of US$11.2 million for the quarter ended September 30, 2006. Software development revenues of US$18.2 million contributed 90.3% of total revenues, and increased 115.6% YoY compared to Adjusted Software Development Revenues for the corresponding period in the previous fiscal year. Software development revenue growth was primarily driven by new customers and to a lesser extent by increased sales to existing customers.

Total revenues for the six months ended September 30, 2007 were US$31.7 million, compared to Adjusted Revenues of US$20.4 million for the six months ended September 30, 2006, a YoY increase of 55.2%. Software development revenues, which were 83.5% of total revenues for the six months ended September 30, 2007, amounted to US$26.5 million, up 85.0% YoY compared to Adjusted Software Development Revenues in the corresponding period a year ago.

  Adjusted software development revenue customer concentration analysis

% of adjusted
 software            Three months ended             Six months ended
 development   September  September  Change  September  September  Change
 revenue from   30,2006    30,2007 (Decrease) 30,2006    30,2007 (Decrease)
Two largest
 bank customers   61.5%      31.6%   (29.9%)    69.3%      43.7%   (25.6%)
Other banks and
 non-financial    36.0%      60.1%    24.1%     28.5%      49.1%    20.6%
Insurance          2.5%       8.3%     5.8%      2.2%       7.2%     5.0%
Total            100.0%     100.0%     0.0%    100.0%     100.0%     0.0%




For our second fiscal quarter, Adjusted Software Development Sales to our two largest customers, which are two of the Big Four banks in China, increased year-on-year but declined as a percentage of total Adjusted Software Development Revenue from 61.5% in the three months ended September 30, 2006 to 31.6% in this quarter. Software development sales to other banks and non- financial customers, which includes one of the Big 4 banks as well as national and city banks, increased significantly from the corresponding period in the previous year. These banks and non-financial customers accounted for 60.1% of software development revenues as compared to 36.0% of our Adjusted Software Development Revenues in the quarter ended September 30, 2006. Insurance customers accounted for 8.3% of software development revenue in the quarter ended September 30, 2007, up from 2.5% of Adjusted Software Development Revenue in 2006, resulting in a 626.0% YoY increase.

  Software Development revenue by solution type as a percentage of
   total adjusted software development  revenue

                      Three months ended             Six months ended
                September  September  Change  September  September  Change
                 30,2006    30,2007 (Decrease) 30,2006    30,2007 (Decrease)
Customised        51.9%      48.3%    (3.6%)    57.4%      51.4%    (6.0%)
Standardised      39.4%      49.2%     9.8%     33.8%      44.6%    10.8%
Maintenance        8.7%       2.5%    (6.2%)     8.8%       4.0%    (4.8%)
Total            100.0%     100.0%     0.0%    100.0%     100.0%     0.0%




The percentage of software development revenues in the second quarter from customized solutions was 48.3%, largely unchanged from 51.9% in the corresponding period a year ago. Standardized solutions increased to 49.2% of revenue from 39.4% in 2006 due to demand from new customers, including national and city commercial banks and insurance companies.

  Adjusted Gross Margins

Adjusted gross margin percentage
                      Three months ended            Six months ended
                September  September  Change  September  September  Change
                 30,2006    30,2007 (Decrease) 30,2006    30,2007 (Decrease)
Software
 Development
 Gross Margin     88.6%      85.8%     (2.8%)   88.0%      81.6%    (6.4%)
Other Services
 Gross Margin     78.4%      62.7%    (15.7%)   80.0%      73.2%    (6.8%)
Total Gross
 Margin %         84.9%      82.7%     (2.2%)   84.3%      79.3%    (5.0%)




Adjusted Gross Margin of 82.7% in the second quarter and 79.3% for the six months ended September 30, 2007 declined from 84.9% and 84.3% in the respective corresponding periods of the previous year. The reduction in Adjusted Gross Margin was due to lower gross margins in both software development and other services. Adjusted Software Development Gross Margins of 85.8% in the second quarter and 81.6% for the six months ended September 30, 2007 declined from 88.6% and 88.0% in the respective periods of the prior year as the Company continued to invest aggressively in software delivery headcount. As of September 30, 2007 we had 634 employees working on software development delivery as compared to 499 as of June 30, 2007 and 317 as of September 30, 2006.

Adjusted Operating Expenses

For the quarter ended September 30, 2007, Longtop's Adjusted Operating Expenses totaled US$3.1 million, an increase of 40.0% YoY, primarily due to additional headcount related expenses, a $366,000 provision for software purchased for internal use and professional fees. Adjusted Operating Expenses as a percentage of revenue for the six months ended September 30, 2007 were 19.0%, up slightly from 17.3% as a percentage of Adjusted Revenues for the comparative year ago period.

Profitability

Adjusted Operating Income margin was 67.3% for the quarter ended September 30, 2007 and 60.3% for the six months ended September 30, 2007, as compared to 65.1% and 66.9% for the corresponding periods in 2006.

Adjusted Net Income for our second quarter was US$11.6 million or US$0.28 per fully diluted share. Adjusted Net Income for the six months ended September 30, 2007 was US$17.1 million or US$0.42 per fully diluted share.

Commenting on the results, Derek Palaschuk, CFO of Longtop, said:

"The strong revenue and income growth we reported is a result of our increasingly diversified customer base, as we continued to monetize new client relationships through our expanded range of higher margin services and solutions. Although we experienced a slight decline in gross margin due to our reinvestment in headcount, making these expenditures is important as we look to ensure our future expansion."

  BUSINESS OUTLOOK

  Longtop anticipates for the quarter ended December 31, 2007:

    i) Total revenues, excluding revenues from FEnet which closed in October
       2007, of US$15.5 million, an increase of 33.6% from Adjusted Revenues
       of $11.6 million in the corresponding year ago period. Although we
       expect that there will be a sequential quarterly revenue decline from
       the September 30, 2007 quarter due to the typical seasonality of the
       business, this outlook indicates our expectation that there will be
       healthy growth from the year ago period.
   ii) Software development revenues to be $13.5 million, an increase of
       39.7% from Adjusted Software Development Revenue in the corresponding
       period a year ago.
  iii) Adjusted Net Income, excluding a US$1.1 million refund of the
       previous year's income taxes which was received in October 2007 and
       will be included in Adjusted Net Income for the quarter ended
       December 31, 2007, to be US$8.5 million as compared to US$5.3 million
       in the comparable period a year ago.
   iv) Fully diluted Adjusted Earnings per Share, excluding the US$1.1
       million income tax refund, to be US$0.17, based on 51 million
       weighted average fully diluted shares outstanding.

  Longtop anticipates for its fiscal year ended March 31, 2008:

    i) Total revenues, excluding revenues from FEnet which closed in October
       2007, of US$58.0 million, an increase of 45.7% from Adjusted Revenues
       of $39.8 million in the corresponding year ago period.
   ii) Software development revenues of $49.0 million, an increase of 64.4%
       from Adjusted Software Development Revenue in the corresponding
       period a year ago.
  iii) Adjusted income from operations of $33.0 million an increase of 42.6%
       from the previous fiscal year.
   iv) Adjusted Net Income, excluding a US$1.1 million refund of the
       previous year's income taxes which was received in October 2007 to be
       US$30 million.
    v) Fully diluted Adjusted Earnings Per Share, excluding the US$1.1
       million income tax refund, to be US$0.60.

  CONFERENCE CALL AND WEBCAST


Longtop's management team will host a conference call today at 7:00 P.M. ET, November 19, 2007 (or 4:00 PM U.S. Pacific Time on November 19, 2007 and 8:00 AM, November 20, 2007 Beijing/Hong Kong time). A live audio webcast of the conference call will be available on Longtop's website at http://www.longtop.com/en. To listen to the conference call, please use the dial in numbers below:

   USA Toll Number: [phone]
   International:   [phone]



A replay of the call will be available for two weeks following the call and can be accessed on the Company website or by dialing the numbers below:

   USA Replay Number: 877-344-7529
   International:     [phone]
   Passcode:          413057

  SHARE-BASED COMPENSATION



In the quarter ended December 31, 2007, excluding any new equity grants made subsequent to this earnings release, Longtop will record share-based compensation expenses of approximately $25.8 million, which includes:

   1) $24.0 million related to ordinary shares that prior to the IPO were
      given by one of our Founders to Longtop's employees. This is a one
      time expense and will not increase or change the total shares
      outstanding. It will have no dilutive impact on earnings per share,
      nor any impact on cash flow or the net assets of the Company.
   2) $0.6 million for shares granted in March 2007 for which share-based
      compensation was deferred pending the initial public offering and will
      be recorded in the quarter ended December 2007 commensurate with the
      IPO.
   3) $1.2 million in recurring share-based compensation expenses for equity
      we have previously issued to our employees.

  NON-GAAP DISCLOSURE ("ADJUSTED")


To supplement the unaudited consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Longtop's management reports and uses non-GAAP ("Adjusted") measures of revenues, cost of revenues, operating expenses, net income and net income per share, which are adjusted from results based on GAAP. Management believes these non-GAAP financial measures enhance the user's overall understanding of our current financial performance and our prospects for the future and, additionally, uses these non-GAAP financial measures for the general purpose of analyzing and managing the Company's business. Specifically, we believe the non-GAAP financial measures provide useful information to both management and investors by excluding certain items that we believe are not indicative of our core operating results. The presentation of this additional information is not meant to be considered superior to, in isolation from or as a substitute for results prepared in accordance with US GAAP. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures contained in this release and which we discuss below. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.

Definitions of Non-GAAP Measures

Adjusted Revenue is defined as revenue excluding, if applicable: software development revenue deferred on standardized contracts from previous years to financial periods ending on or prior to December 31,2006 because Longtop did not have Vendor Specific Objective Evidence ("VSOE") or evidence that costs of Post Contract Service ("PCS") had been immaterial. Subsequent to January 1,2007, Longtop had evidence that PCS for standardized contracts was immaterial and Adjusted adjustments were not required after this date.

Adjusted Cost of Revenue is defined as cost of revenue excluding, if applicable: (1) non-cash compensation expense and (2) amortization of acquired intangibles.

Adjusted Gross Margin is defined as Adjusted Revenue less Adjusted Cost of Revenue.

Adjusted Operating Expenses is defined as operating expenses excluding, if applicable: (1) non-cash compensation expense,(2) amortization of acquired intangibles and goodwill impairment, and (3) one-time items.

Adjusted Operating Income is defined as Adjusted Gross Margin less Adjusted Operating Expenses.

Adjusted Net Income is defined as Adjusted Operating Income plus/minus other income/(expenses), less income taxes, excluding: (1) one time items and (2) discontinued operations.

Adjusted EPS is defined as Adjusted Net Income divided by diluted shares.

One-Time Items, if applicable, are excluded from Adjusted Operating Income and Adjusted Net Income. These items are one-time in nature and non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years. GAAP results include one-time items.

Non-Cash Expenses That Are Excluded From Our Non-GAAP Measures

Non-cash compensation expense consists principally of expense associated with the grants, including unvested grants assumed in acquisitions, of restricted stock, restricted stock units and stock options. These expenses are not paid in cash, and we include the related shares in our fully diluted shares outstanding, which, for restricted stock units and stock options, are included on a treasury method basis. Longtop's management believes excluding the share-based compensation expense from its non-GAAP financial measure is useful for itself and investors. Further, the amount of share-based compensation expense cannot be anticipated by management and business line leaders and these expenses were not built into the annual budgets and quarterly forecasts, which have been the basis for information Longtop provides to analysts and investors as guidance for future operating performance. As share-based compensation expense does not involve any upfront or subsequent cash outflow, Longtop does not factor this in when evaluating and approving expenditures or when determining the allocation of its resources to its business segments. As a result, the monthly financial results for internal reporting and any performance measure for commission and bonus are based on non-GAAP financial measures that exclude share-based compensation expense.

Amortization of acquired intangibles is a non-cash expense relating to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as backlog, customer relationships, and intellectual property are valued and amortized over their estimated lives. While it is likely that we will have significant intangible amortization expense as we continue to acquire companies, we believe that since intangibles represent costs incurred by the acquired company to build value prior to acquisition, they were part of transaction costs.

OTHER INFORMATION

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

It is currently expected that the Business Outlook will not be updated until the release of Longtop's next quarterly earnings announcement; however, Longtop reserves the right to update its Business Outlook at any time for any reason.

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; the ability of the Company to operate effectively as a public company; the period of time for which its current cash will enable the Company to fund its operations; 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. Our actual results of operations for the quarter ended September 30, 2007 are not necessarily indicative of our operating results for any future periods. 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 has five solution delivery centers, three research centers and thirty-four service centers located in 20 provinces throughout China. Longtop was founded in 1996 by Jia Xiaogong, our Chairman and Lian Weizhou, our CEO, as a system integration Company focusing on the financial services industry in China and made the transition to a software and solutions provider in 2001. For more information, please visit: http://www.longtop.com/.

                         CONSOLIDATED BALANCE SHEETS


                                                March 31,     September 30,
                                                    2007              2007

                                                 Audited         Unaudited
                                           (In U.S. dollar thousands, except
                                            share and per share data)
  Assets
  Current assets:
        Cash, bank deposits and cash
         equivalents                             $69,920           $87,301
        Restricted cash                            3,395               247
        Accounts receivable, net                  19,495            19,131
        Inventories                                1,081             2,526
        Amounts due from related
         parties                                      --                54
        Deferred tax assets                          644               173
        Other current assets                       3,231             9,609

        Total current assets                      97,766           119,041

  Fixed assets, net                                4,835             4,779
  Intangible assets, net                           8,040             1,831
  Goodwill                                         9,112             9,988
  Investment in an associate                          --                --
  Deferred tax assets                                 33               142
  Other assets                                       646               577

        Total assets                            $120,432          $136,358

  Liabilities, mezzanine equity and
   shareholders' equity
  Current liabilities:
        Short-term borrowings                     $8,669           $21,126
        Accounts payable                           4,581             1,773
        Deferred revenue                           4,725             5,755
        Amounts due to related parties                --                --
        Deferred tax liabilities                      --                --
        Accrued and other current
         liabilities                               9,714            13,875

        Total current liabilities                 27,689            42,529

  Long-term liabilities:
        Obligations under capital
         leases, net of current portion              219               142
        Deferred tax liabilities                     617               263
        Other non-current liabilities                 --               520

        Total liabilities                         28,525            43,454


  Mezzanine equity:
   Series A convertible redeemable
    preferred shares: $0.01 par value
    (6,360,001 and 6,360,001 shares
    authorized, issued and outstanding
    as of March 31, 2007 and September
    30, 2007, respectively, liquidation
    value $23,416)                               $23,214           $23,214
   Series B convertible redeemable
    preferred shares: $0.01 par value
    (3,858,005 and 3,953,861 shares
    authorized, issued, and outstanding
    as of March 31, 2007 and September
    30, 2007, respectively, liquidation
    value $24,826)                                24,673            24,673

        Total mezzanine equity                    47,887            47,887

  Shareholders' equity:
  Ordinary shares $0.01 par value
   (68,640,000 shares  authorized,
   29,705,267 and 30,434,240 shares
   issued and outstanding as of March
   31, 2007 and September 30, 2007)                 $297              $304
  Additional paid-in capital                      19,120            28,102
  Subscription receivable                             --                --
  Retained earnings                               22,320            12,215
  Accumulated other comprehensive
   income                                          2,283             4,396

        Total shareholders' equity                44,020            45,017

        Total liabilities, mezzanine
         equity and shareholders'
         equity                                 $120,432          $136,358



                    CONSOLIDATED STATEMENTS OF OPERATIONS


                               Three Months Ended       Six Months Ended
                             September   September   September   September
                               30,2006     30,2007     30,2006     30,2007
                             Unaudited   Unaudited   Unaudited   Unaudited
                           (In U.S. dollar thousands, except share and per
                                             share data)
  Revenues:
        Software
         development           $10,608     $18,249     $18,162     $26,489
        Other services           2,739       1,951       6,126       5,241
        Total revenues          13,347      20,200      24,288      31,730
         Less business
          taxes                   (137)       (187)       (262)       (304)

        Net revenues            13,210      20,013      24,026      31,426
  Cost of revenues:
        Software
         development               971       2,591       1,724       4,876
        Other services             814         972       1,523       1,886
        Total cost of
         revenues                1,785       3,563       3,247       6,762
  Gross profit                  11,425      16,450      20,779      24,664

  Operating expenses:
        Research and
         development               384         453         701         890
        Sales and marketing        618         716         625       1,628
        General and
         administrative          2,363       2,107       3,903       3,921
        Total operating
         expenses                3,365       3,276       5,229       6,439
  Income from operations         8,060      13,174      15,550      18,225

  Other income (expenses):
        Interest income             58         198         127         473
        Interest expense          (162)       (269)       (330)       (438)
        Other (expenses)
         income, net                14          32          25          66

        Total other income
         (expenses)                (90)        (39)       (178)        101

  Income before income tax
   expense                       7,970      13,135      15,372      18,326
        Income tax expense      (2,423)     (1,991)     (4,673)     (2,185)

  Income from continuing
   operations                    5,547      11,144      10,699      16,141
        Loss from
         discontinued
         operations               (114)     (1,225)       (157)     (1,293)
  Net income                     5,433       9,919      10,542      14,848

  Net income per share:
          Continuing
           operations            $0.15       $0.28       $0.32       $0.40
          Discontinued
           operations           $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Basic ordinary
         share                   $0.15       $0.25       $0.32       $0.37
          Continuing
           operations            $0.15       $0.28       $0.32       $0.40
          Discontinued
           operations           $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Basic preferred
         share                   $0.15       $0.25       $0.32       $0.37
          Continuing
           operations            $0.14       $0.27       $0.28       $0.40
          Discontinued
           operations           $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Diluted                  $0.13       $0.24       $0.28       $0.36

  Shares used in
   computation of net
   income per share:
        Basic ordinary
         share              29,490,000  29,745,320  29,699,667  29,725,294
        Basic preferred
         share               6,360,000  10,244,339   3,427,334  10,231,172
        Diluted             40,831,880  41,192,580  38,064,537  40,844,608

  Adjusted net income per
   share (unaudited):
          Continuing
           operations            $0.15       $0.28       $0.32       $0.40
          Discontinued
           operations           $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Basic ordinary
         share                   $0.15       $0.25       $0.32       $0.37
          Continuing
           operations            $0.14       $0.27       $0.28       $0.40
          Discontinued
           operations           $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Diluted                  $0.13       $0.24       $0.28       $0.36

  Shares used in adjusted
   net income per share
   computation (unaudited):
        Basic ordinary
         share              35,850,000  39,989,659  33,127,001  39,956,466
        Diluted             40,831,880  41,192,580  38,064,537  40,844,608

  Includes share-based
   compensation related to:
  Cost of revenues software
   development                      $3          $3          $5          $6
  General and
   administrative expenses      $1,124        $166      $1,497        $414
  Sales and marketing
   expenses                        $12         $11         $24         $22
  Research and development
   expenses                        $--         $--         $--         $--



           UNAUDITED CONSOLIDATED ADJUSTED STATEMENTS OF OPERATIONS

                               Three Months Ended      Six Months Ended
                              September   September   September   September
                                30,2006     30,2007     30,2006     30,2007
                             (In U.S. dollar thousands, except share and per
                                              share data)
  Revenues:
        Software development     10,608      18,249     $18,162     $26,489
        Other services            2,739       1,951       6,126       5,241
        Total revenues           13,347      20,200      24,288      31,730
         Less business taxes       (137)       (187)       (262)       (304)
        Net revenues             13,210      20,013      24,026      31,426

  Software development
   revenue adjustments:
        Revenue deferred  to
         2006 because of
         lack of VSOE            (2,143)         --      (3,846)         --

  Adjusted revenues:
        Software development      8,465      18,249      14,316      26,489
        Other services            2,739       1,951       6,126       5,241
        Total revenues           11,204      20,200      20,442      31,730
         Less business taxes       (137)       (187)       (262)       (304)
        Net adjusted
         revenues                11,067      20,013      20,180      31,426

  Cost of revenues:
        Software development        971       2,591       1,724       4,876
        Other services              814         972       1,523       1,886
        Total cost of
         revenues                 1,785       3,563       3,247       6,762

  Cost of revenue
   adjustments:
        Share-based
         compensation
         software
         development                 (3)         (3)         (5)         (6)
        Amortization of
         acquired intangible
         assets other
         services                  (222)       (244)       (295)       (482)

  Adjusted cost of revenues:
        Software development        968       2,588       1,719       4,870
        Other services              592         728       1,228       1,404
        Total adjusted cost
         of revenues              1,560       3,316       2,947       6,274

  Gross profit                   11,425      16,450      20,779      24,664

  Adjusted gross profit           9,507      16,697      17,233      25,152

  Operating expenses:
        Research and
         development                384         453         701         890
        Sales and marketing         618         716         625       1,628
        General and
         administrative           2,363       2,107       3,903       3,921
        Total operating
         expenses                 3,365       3,276       5,229       6,439

  Operating expense
   adjustments:
        Share-based
         compensation
         research and
         development                 --          --          --          --
        Share-based
         compensation sales
         and marketing              (12)        (11)        (24)        (22)
        Share-based
         compensation
         general and
         administrative          (1,124)       (166)     (1,497)       (414)
        Non-recurring costs
         general and
         administration             (15)         --        (160)         --
             Initial public
              offering
              expenses
              written off           (15)         --        (160)         --
             Provision for
              Deposits               --          --          --          --
             Dividend to
              Founders
              recorded as
              compensation           --          --          --          --

  Adjusted operating
   expenses:
        Research and
         development                384         453         701         890
        Sales and marketing         606         705         601       1,606
        General and
         administrative           1,224       1,941       2,246       3,507
        Total adjusted
         operating expenses       2,214       3,099       3,548       6,003

  Income from operations          8,060      13,174      15,550      18,225

  Adjusted income from
   operations                     7,293      13,598      13,685      19,149

  Other income (expenses):
        Interest income              58         198         127         473
        Interest expense           (162)       (269)       (330)       (438)
        Other (expenses)
         income, net                 14          32          25          66
        Total other income
         (expenses)                 (90)        (39)       (178)        101

  Income before income tax
   expense                        7,970      13,135      15,372      18,326

  Adjusted income before
   income tax expense             7,203      13,559      13,507      19,250

        Income tax expense       (2,423)     (1,991)     (4,673)     (2,185)

  Income from continuing
   operations                     5,547      11,144      10,699      16,141

  Adjusted net income             4,780      11,568       8,834      17,065

        Loss from
         discontinued
         operations                (114)     (1,225)       (157)     (1,293)

  Net income                      5,433       9,919      10,542      14,848


  Net income per share:
          Continuing
           operations             $0.15       $0.28       $0.32       $0.40
          Discontinued
           operations            $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Basic ordinary share      $0.15       $0.25       $0.32       $0.37
          Continuing
           operations             $0.15       $0.28       $0.32       $0.40
          Discontinued
           operations            $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Basic preferred
         share                    $0.15       $0.25       $0.32       $0.37
          Continuing
           operations             $0.14       $0.27       $0.28       $0.40
          Discontinued
           operations            $(0.00)     $(0.03)     $(0.00)     $(0.03)
        Diluted                   $0.13       $0.24       $0.28       $0.36

  Adjusted net income per
   share:
        Basic ordinary share      $0.13       $0.29       $0.27       $0.43
        Diluted                   $0.12       $0.28       $0.23       $0.42

  Shares used in computation
   of net income and
   adjusted net income per
   share:
        Basic ordinary share 29,490,000  29,745,320  29,699,667  29,725,294
        Basic preferred
         share                6,360,000  10,244,339   3,427,334  10,231,172
        Diluted              40,831,880  41,192,580  38,064,537  40,844,608



  For more information, please contact:

   Longtop Financial Technologies Limited
   Huiying Yang
   Phone: [phone] x1312
   Email: 

   Financial Dynamics
   Julian Wilson
   Phone: [phone]
   Email: 

   Peter Schmidt
   Phone: [phone]
   Email: 

DATASOURCE: Longtop Financial Technologies Limited



CONTACT:  Huiying Yang of Longtop Financial Technologies Limited +86-592-

239-6888 x1312 or ; or Financial Dynamics - Julian Wilson, +86-

10-8591-1951 or ; or Peter Schmidt, [phone] or

, both for Longtop Financial Technologies Limited 



Web Site:  http://www.longtop.com/en 

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