Yucheng Technologies wins e-banking deal with Hangzhou City Commercial Bank

The basic contract size is RMB 6.5 million (approximately US$860,000) and the project is expected to be completed by February 2008. This contract is our first relationship with Hangzhou City Commercial Bank, and demonstrates a further win in our strategy to penetrate into the city commercial banks.

Prior to this, we have begun initial working relationships with several other major city commercial banks including Bank of Beijing, Bank of Shanghai, Bank of Nanjing and Shenzhen Ping An Bank.

"We are excited about this strategic contract win with Hangzhou City Commercial Bank, one of the top ten city commercial banks in China. This online banking project with Hangzhou City Commercial Bank will bring us an industry specific reference relevant to the city commercial banking sector, which will hopefully lead to subsequent wins in this market segment," stated Weidong Hong, the CEO of Yucheng. "City commercial banks in China play a vital role at the municipal level. In recent years, city commercial banks have begun to upgrade key operations to international standards. Many of the leading city commercial banks have partnered with strategic investors and are in the process of public financing in order to raise capital to invest in improving operational efficiency and profitability. Investment in IT infrastructure is a key part of these restructuring plans. With our extensive experience, successful reference accounts, and expertise in serving top tier banking clients, Yucheng is well-positioned to service this market segment of small to medium sized banks. This is especially true in products and services where we are the established industry leader, such as online banking, risk management and call center solutions. We believe Hangzhou City Commercial Bank is only the beginning and look forward to sharing more successes in this customer segment in the future."