For immediate release:
Pansoft to Acquire Beijing ITLamp Technology Co., Ltd.
Jinan, China, May 17, 2010 – Pansoft Company Limited (NASDAQ: PSOF) (“Pansoft” or the “Company”),
a leading ERP software service provider for the oil and gas industry in China, today announced that it has signed
an agreement on Friday, May 14, 2010 to acquire Beijing ITLamp Technology Co., Ltd (“ITLamp”).
Pansoft will acquire 100% equity in ITLamp for approximately $3.07 million, 38% (approximately $1.17 million)
of which shall be paid in cash and the balance in restricted Company stock (approximately $1.90 million) with
three years of vesting period. Unaudited 2009 revenue and net income for ITLamp was $0.99 million and $0.40
ITLamp is a leading IT solution and service provider servicing oil companies in the Tarim oilfield with innovative
products such as digital desktop office platform, material supply system, and analytical and test system. These
products are fully implemented at major sites of clients, including PetroChina Tarim Oilfield Company and Tarim
Northwest Exploration Co., Ltd. Pansoft will leverage ITLamp’s customer base and solutions to increase the
Company’s presence in the oilfield market segment. In addition, ITLamp’s core proprietary technologies such as
unified login authorization, digital signature and electronic seal system, and business process management will be
combined with Pansoft’s solution portfolio and technology platform to provide higher quality services and more
comprehensive solutions to its clients.
PetroChina Tarim Oilfield Company is located in the Tarim basin of Xinjiang Municipal Province, the largest
Hydrocarbon-bearing basin in China. According to the most recent estimates, the Tarim basin has approximately
16 billion tons of proven oil and gas reserves with 8 billion tons of crude oil reserves and 10 trillion cubic meters
of natural gas reserves. ITLamp’s revenue in the calendar year of 2010 is projected to be