EBITDA

Adjusted EBITDA for the first quarter 2013 was minus RMB5.3 million (US$0.8 million), compared to minus RMB1.3 million in the first quarter 2012.

Balance Sheet and Cash Flow

As of March 31, 2013, cash and cash equivalents were RMB43.6 million (US$7.0 million), a decrease of RMB35.8 million from RMB79.4 million as of December 31, 2012. The decrease was primarily attributable to the payment of annual bonuses and the expenditure on customer projects.

Total accounts receivable as of March 31, 2013 decreased 5.5% to RMB23.8 million (US$3.8 million) from RMB25.2 million as of December 31, 2012. The decrease was primarily attributable to the collection of trade receivables due from the projects completed in prior quarters.

Inventory and work in process as of March 31, 2013 increased 49.2% to RMB28.8 million (US$4.6 million) from RMB19.3 million as of December 31, 2012. The increase was primarily attributable to an increase in the number of on-going projects which had not reached the point of revenue recognition.

For the quarter ended March 31, 2013, net cash used in operating activities was RMB31.8 million (US$5.1 million). Net cash used in investing activities was RMB3.9 million (US$0.6 million).

SECOND QUARTER 201 3 GUIDANCE

eFuture expects total revenue for the second quarter 2013 to be in the range of RMB43 million (US$6.9 million) to RMB48 million (US$7.7 million). Adjusted EBITDA for the second quarter 2013 is expected to be in the range of minus RMB4.0 million (US$0.6 million) to breakeven.

CONFERENCE CALL INFORMATION

eFuture's management will host a conference call on May 21, 2013 at 5:00 am (US Pacific) / 8:00 am (US Eastern) / 8:00 pm (Beijing) to discuss the Company's 2013 first quarter results and recent business activities. The conference call may be accessed by dialing:
To access the conference call, please dial:
   
Toll Free:   
U.S. 1-866-519-4004
Hong Kong 800-930-346
Toll:  
International 65-6723-9381
China 400-620-8038 / 800-819-0121
Hong Kong 852-2475-0994
U.S.  1-718-354-1231
Passcode: eFuture
   
   
Please dial in 10 minutes before the call is scheduled to begin.
   
A replay of the conference call may be accessed by phone at the following numbers: 
   
Toll Free:   
U.S. 1-855-452-5696
China  400-120-0932 / 800-870-0205
Hong Kong  800-963-117
International Toll: 61-2-8199-0299
Replay Passcode: 5580-7509
Available Time: 11:00 a.m. May 21, 2013 ET– 9:59 a.m. May 29, 2013 ET

The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.e-future.com.cn .

CURRENCY CONVENIENCE TRANSLATION

For the convenience of readers, certain RMB amounts have been translated into US dollars at the rate of RMB6.2108 to US$1.00, the noon buying rate for US dollars in effect on March 31, 2013 for cable transfers of RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.

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