The R&D center will focus on standardizing the software deployment process and modularizing Yucheng's leading software solutions, such as e-banking. Segmenting existing software code into modules will not only ensure consistent quality standards, but also reduce the customization time required to implement each customer's unique requirements.

The Tianjin delivery center is part of Yucheng's strategy to grow operations in tier II cities, which have significantly lower personnel and operating costs. The company's growing customer base in northern China, which is currently served from the Beijing delivery center, in the future will be served from both the newly established Tianjin and existing Beijing delivery centers.

Mr. Weidong Hong, CEO and Chairman of Yucheng Technologies said, "With its proximity to Beijing and lower cost structure, Tianjin is an ideal location for R&D and delivery centers to support our projects in northern China. As part of our growth strategy announced on the second quarter call, we will be shifting more of our engineering headcount to strategically positioned R&D and solution delivery centers. We view Tianjin as the first step in this process."

Yucheng expects to open the Tianjin centers in the first half of 2010. The Tianjin R&D center will act as the northern counterpart to Yucheng's existing southern center in Chengdu.