Duoyuan Printing (PINK:DYNP)

BEIJING, June 7, 2011 /PRNewswire-Asia-FirstCall/ -- On June 6, 2011, Duoyuan Printing, Inc. (NYSE: DYP) ("Duoyuan Printing" or the "Company"), announced an update on the status of its listing with the NYSE.

The Company previously received a notice on March 28, 2011 indicating that NYSE Regulation, Inc. ("NYSE Regulation") has determined that the Company is subject to delisting and that the common stock of the Company should be suspended prior to the opening on April 4, 2011.  The decision was reached in view of the fact that the Company is a late filer and was under review by NYSE Regulation in light of the delay in filing with the Securities and Exchange Commission of its June 30, 2010 Form 10-K and certain of its fiscal 2011 Form 10-Q filings.  On April 4, 2011, the Company's stock was suspended from trading on the NYSE and commenced trading on the over-the-counter market following the suspension.

On April 11, 2011, the Company requested a review of NYSE Regulation's determinations.  The Company did not request that the suspension be lifted pending the appeal.  On May 4, 2011, NYSE Regulation, Inc. Board of Directors' Committee for Review granted the Company a hearing date of September 12, 2011.

On May 5, 2011, the Company received a notice from NYSE Regulation requesting the provision of certain information pursuant to the Company's listing agreement with the NYSE.  In particular, NYSE Regulation requested information mainly concerning:

1. details and the status of the Company's internal investigation,

2. all documents provided to, collected by or gathered in connection with the Company's internal investigation or the SEC investigation,

3. copies of all correspondence between the Company and the SEC regarding the SEC investigation and copies of all documents and information provided or produced to the SEC in connection with the SEC investigation,

4. details and the status of the Company's retention of an independent auditor,

5. complete biographical data for current members of the Board of Directors and the Audit Committee, and

6. a detailed analysis of the Company's current shareholders' equity, including any support for the financial and operating data disclosed in the Company's March 21, 2011 Form 8-K.

In the May 5th letter, NYSE Regulation also reiterated that it would continue to monitor the Company's compliance with the other qualitative and quantitative continued listing standards applicable to the Company.

The Company has since provided a response to NYSE Regulation's May 5th letter as well as responses to subsequent follow-up requests from NYSE Regulation and its counsel, including, in part, the Company's assertion of attorney-client and work product privileges over NYSE Regulation's request for documents provided to, collected by or gathered in connection with the Company's internal investigation or the SEC Investigation.

On May 31, 2011, the Company received a notice from NYSE Regulation informing the Company that NYSE Regulation has determined there are additional grounds that render the Company as no longer suitable for continued listing under Section 802.01 of the NYSE's Listed Company Manual.  The additional grounds include determinations that:

1. the Company and/or its management has engaged in operations which, in the opinion of the NYSE, are contrary to the public interest and make further dealings or listing of the Company's common stock on the NYSE inadvisable or unwarranted, which are based on the circumstances under which the Company (a) terminated Deloitte after it identified questionable activity and reported difficulty obtaining information and documentation necessary to complete its audit, (b) disregarded the opinions of the Company's former independent directors with respect to terminating Deloitte, (c) has yet to have retained an independent auditor and has not presented any evidence to NYSE Regulation that it will be able to retain one at any time in the near future, and (d) experienced the resignations of its Chief Financial Officer and two independent directors (including the chair of the Audit Committee),

2. the Company has failed to provide support for its $50 million stockholders' equity calculation, leading NYSE Regulation to determine that the Company has failed to observe good accounting practices in reporting its earnings and financial position,

3. the Company's responses to the May 5 letter and subsequent correspondence has failed to comply with its disclosure obligations to the NYSE under its listing agreement, and

4. the Company has failed to comply with quantitative continued listing standards.

At this time, the Company intends to continue pursuing the appeal of NYSE Regulation's determinations.  The Company will address the allegations raised by NYSE Regulation at a hearing at NYSE's offices in New York City scheduled on September 12, 2011.

The Company recently issued a lengthy 8k regarding their dismissal of Deloitte, the status of their lawsuits and investigations, and the risk of being delisted from the exchange. Please read.

Duoyuan Printing,  today announced several management changes as well as the dismissal of Deloitte Touche Tohmatsu CPA Ltd. ("Deloitte") as its independent registered public accounting firm. The Company is currently in discussion with an auditing firm to replace Deloitte.

see full release

Our business is affected by seasonality in that typically the quarter ending March 31 is the weakest because most businesses are closed during the Chinese New Year holiday. However, Duoyuan Printing expects steady year-over-year growth for the third quarter ended March 31, 2010 due to the ongoing growth in sales of the Company's multicolor printing products as well as the continuing growth of the Chinese economy.

Based on information available as of February 10, 2010, Duoyuan Printing currently expects to generate revenues in an amount ranging from $20 million to $21 million for the third quarter ended March 31, 2010, representing a year-over-year increase in the range of 15% to 20%. This forecast reflects the Company's current and preliminary view, which is subject to change.