China VoIP & Digital Telecom Inc., (OTCBB:CVDT) (the “Company”) today announced its preliminary 2009 financial results. These results were impacted by the government block of its VoIP services since late July 2009.
  • 2009 unaudited revenue was $4,528,744, a 263% decrease compared to $8,524,413 of revenue in 2008
  • 2009 unaudited operating income was $640,400
  • 2009 unaudited net Loss was $2,047,800

Mr. Kunwu Li, President and CEO of the Company, said, “We are disappointed by our 2009 financial results. The company’s communication business has suffered tremendously resulting in weak revenues and profits, as well as the great decrease in value of the relevant communication assets. The indefinite government block of VoIP services is a political need at this time and we cannot change the government’s policy. Fortunately, we completed the business transition in 2009, and now are focusing on providing our virtualization solutions and services.”

Mr. Li added, “Since 2008, our virtualization solutions and services have obtained strong supports from the Chinese governments, and we have had several breakthroughs in the virtualization field. Especially in the last quarter of 2009, the virtualization business brought revenues which accounted for 25% of the total revenue in 2009. We are excited to see our business transition showing initial success, and we are confident that the virtualization business will become our growth engine in 2010 and beyond.”

China VoIP & Digital Telecom will report the audited financial statements on March 31, 2010. Despite the initial success with the virtualization solutions and services (we entered into the industries covering government departments, power supply, healthcare, education, taxation, public security and Petrochemistry), there are still risks and uncertainties involved in the company’s new virtualization businesses which related to our marketing efforts and results in foregoing industries.

About China VoIP & Digital Telecom Inc.

China VoIP & Digital Telecom Inc. offers virtualization technology application in the People's Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd and Beijing PowerUnique Technologies, Co., Ltd. Through the two subsidiaries, China VoIP & Digital Telecom is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its integral virtualization solutions and services in China and at this time is in the testing stages of other Information Technology products. More information can be found at

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Safe Harbor Statement

Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as 'believe,' 'expect,' 'may,' 'will,' 'should,' 'project,' 'plan,' 'seek,' 'intend,' or 'anticipate' or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

Copyright Business Wire 2010