Yucheng Technologies Limited Reported 50% Year-Over-Year Increase in Pro-Forma Net Income and Gross Margin Improvement

Financial Results for the Three Month Period Ended June 30, 2007

Highlights：

-- Unaudited revenue is US$10.4 million, increasing 12% quarter-over-

quarter and 32% year-over-year

-- Unaudited net income, excluding e-Channels related acquisition

amortization, is US$2.1 million, an increase of 97% quarter-over-

quarter and an increase of 50% year-over-year

-- Unaudited gross margin is 36% for this period, compared to 32% for the

same period of 2006, and 29% for the first three month period of 2007

-- Diluted EPS, excluding e-Channels related acquisition amortization, is

US$0.17, increasing by 89% compared to US$0.09 for the first three

month period of 2007

-- Received US$34.3 million from redemption of warrants, increasing total

outstanding shares to 16,394,806

BEIJING, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- Yucheng Technologies Limited (Nasdaq: YTEC), a China-based leading provider of IT and outsourced services for the Chinese banking industry, today announced company prepared, unaudited financial results for the three month period ended June 30, 2007.

The company reported unaudited revenue of US$10.4 million for the three month period ended June 30, 2007, representing a 12% quarterly increase compared to US$9.3 million in the first three month period of 2007, and an increase of 32% over the same period in 2006. The increase in revenues reflects strong growth in all of the company’s main product offerings.

Excluding amortization expense related to the e-Channels acquisition, the unaudited net income for the three month period ended June 30, 2007 was US$2.1 million, a 97% quarterly increase compared to US$1.0 million in the first three month period of 2007, and an increase of 50% from US$1.4 million for the same period in 2006. Unaudited net income including the e-Channels amortization charge for the three month period ended June 30, 2007 was US$1.8 million. The unaudited earnings per share for the three month period ended June 30, 2007 was US$0.17 excluding the amortization charge and US$0.15 including it.

"Our businesses again delivered solid performance in this three month period and we remain well on track to achieve our full-year management incentive profit target," remarked Mr. Weidong Hong, Yucheng’s CEO. "Our software, IT consulting, maintenance and support businesses once again led the company’s performance with continued growth in revenue and margin expansion. In particular, non-system integration business revenue in this quarter increased by 32% sequentially, compared to the first three month period in 2007. We continue to focus on developing our software and IT consulting businesses, and continue to strengthen our commitment to risk management, online banking and call center solutions, which we believe will continue to see robust growth. We are currently working on several large contracts in these categories. Highlights in the past three months include many exciting events for the company. On May 9th, Yucheng was upgraded from NASDAQ Capital Market to NASDAQ Global Market, which provides us with increased market visibility and greater access for investors interested in being shareholders. We also completed the warrant redemption which broadened our shareholder base, increased share liquidity by adding 6.9 million shares to the free float and raised US$34.3 million of capital for future acquisitions, strategic investments and working capital.”

Key Unaudited Financial Indicators:

The difference between the unaudited non-GAAP net income amounts and GAAP net income amounts set forth is the effect of the amortization expense of intangible assets, which resulted from the accounting treatment of the acquisition of Beijing e-Channels Century Technology Co., Ltd.

(All numbers in US$ thousands, except per-share amounts)

Q2 of 2007 Q2 of 2006 Change (%)

Consolidated Revenue $10,426 $7,896 32 %

Cost of Revenue $6,695 $5,340 25 %

Gross Profit $3,731 $2,556 46 %

Total Operating Expenses $1,837 $963 91 %

Income from Operations $1,894 $1,593 19 %

Non-GAAP Net Income $2,062 $1,379 50 %

Amortization of Intangible $274 Nil N/A

Assets

GAAP Net Income $1,788 $1,379 30 %

Non-GAAP EPS - Diluted $0.17 $0.37 (54)%

GAAP EPS - Diluted $0.15 $0.37 (60)%

Weighted average

common shares

outstanding - Diluted 12,272,771 3,754,484 227 %

Note: The United States dollar amounts in the above table are calculated

based on the US$: RMB conversion rate of 7.6155 as of June 30, 2007

and 7.9956 as of June 30, 2006.

Unaudited Financial Results:

Unaudited revenue for the three month period ended June 30, 2007 was US$10.4 million, a 12% quarterly increase compared to US$9.3 million in the first three month period of 2007, and an increase of 32% compared to the US$7.9 million for the same period last year. The breakdown is as follows: approximately 55% of total unaudited revenue was from system integration; and 45% of total unaudited revenue was from non-system integration.

Unaudited cost of revenues was US$6.7 million compared to US$6.6 million during the first three month period of 2007, and US$5.3 million during the three month period ended June 30, 2006, representing an increase of 2% quarter-over-quarter and 25% year-over-year. The unaudited gross profit for the three month period ended June 30, 2007 was US$3.7 million, up 36% compared to the first three month period of 2007, and up 46% compared to the US$2.6 million in the same period of 2006.

The overall gross margin was 36% for the three month period ended June 30, 2007, compared to 32% during the same period of 2006, and to 29% for the first three month period in 2007. The increase was mainly due to the increase of percentage of non-system integration revenue in the total revenue mix and increased gross margin in this business.

Unaudited selling, marketing and general administrative expenses totaled US$2.0million, a 44% increase quarter-over-quarter and a 116% increase from US$0.9 million year-over-year. The increase was attributable to expansion of core Yucheng operations and the expenses incurred from POS merchant acquiring business. Unaudited research and development expenses increased by 89% to US$201,458 compared to that in the three month period ended June 30 2006. Research and development expenses were mainly related to investment in developing new and higher margin software products.

Unaudited income from operations was US$1.9 million, which increased by 58% as compared to US$1.2 million for the first three month period of 2007, and increased by 19% as compared to US$1.6 million for the three month period ended June 30, 2006. The operating margin for the three month period ended June 30, 2007 was 18%, versus 20% for the same period in the previous year, and 13% for the first three month period of 2007. The effective tax rate for the same period of 2007 was negative 4%, compared to 10% for the first three month period of 2007, and 12% for the three month period ended June 30, 2006, due to deferred tax assets recognized in the POS division.

Excluding amortization charge related to the e-Channels acquisition, the net income for the three month period ended June 30, 2007 was US$2.1 million, representing EPS Diluted of US$0.17 compared to a net income of US$1.4 million or EPS US$0.37 in the same period of 2006. Including the amortization charge, the net income is US$1.8 million and EPS diluted is US$0.15 for the three month period ended June 30, 2007. The weighted average number of shares used in the calculation of diluted EPS was 12,272,771 for the three month period ended June 30, 2007 compared to 3,754,484 in the same period of 2006.

Business Outlook:

"Yucheng’s management team is committed to delivering sustainable and solid growth to our shareholders. The trend of heavy IT investment by Chinese banks in electronic customer service channels such as web-banking, call centers and risk management continues, and we expect to see robust demand for our existing product lines for the remainder of 2007," concluded Weidong Hong, CEO of Yucheng. "In addition, we strive to carry out our growth strategy of migrating ourselves into higher margin IT consulting and software businesses, and expanding our client base. Finally, senior management has a positive outlook for the second half of this year, and remains confident in our abilities to achieve our corporate goals for 2007."

Teleconference Information:

Management will conduct a conference call to discuss its financial results for the three month period ended June 30, 2007 at 8:00 a.m. EST on Tuesday, August 14, 2007. Interested parties may dial toll-free 1-866-519-4004 if dialing from the States, 1-800-407-1908 if dialing from Canada, or 0-808-234-6646 if dialing from UK. For NetCom or Telecom Users in China, please dial 10-800-650-0419 and 10-800-265-0432, respectively. Interested parties in other countries should dial +65 67357955. Please dial in to the call approximately 10 minutes prior to the scheduled start time, and use the conference call identification 12139218 to join.

The record of this call can be downloaded and accessible at http://www.intercallapac.com/ftp/conf12139218.zip for 48 hours starting 2 hours after the end of the call. The record also will be accessible on Yucheng’s website at http://www.yuchengtech.com .

About Yucheng Technologies Limited

Yucheng Technologies Limited (YTEC) is a leading IT and outsourced service provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has more than 1,200 employees and has established an extensive footprint to serve its banking clients nationwide with nine subsidiaries and representative offices located in Shanghai, Guangzhou, Xi’an, Xiamen, Zhengzhou, Kunming, Nanjing, Changsha and Chengdu. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks including 1) system integration and IT consulting, 2) solutions and software platform, and 3) outsourced operations. Yucheng counts 13 out of the 15 top banks in China as its customers, and is especially strong in banking channel management IT solutions and services, such as web banking and call centers, and risk/performance management solution consulting and implementation service. It is also rapidly becoming one of the leading third party providers of POS merchant acquiring services.

Safe Harbor Statement

This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project" or "continue" or the negative thereof or other similar words. Such forward-looking statements, based upon the current beliefs and expectations of Yucheng’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: current dependence on the PRC banking industry demand for the products and services of Yucheng; competition from other service providers in the PRC and international consulting firms; the ability to update and expand product and service offerings; retention and hiring of qualified employees; protection of intellectual property; creating and maintaining quality product offerings; operating a business in the PRC with its changing economic and regulatory environment; and the other relevant risks detailed in Yucheng filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Yucheng assumes no obligation to update the information contained in this press release.

YUCHENG TECHNOLOGIES LIMITED AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

June 30, 2007 and Dec 31, 2006

Assets 2007.6.30 2007.6.30 2006.12.31

USD RMB RMB

Current assets:

Cash 38,688,611 294,633,113 98,357,657

Trade accounts receivable,

Net 21,826,328 166,218,403 116,606,333

Costs and estimated

earnings in excess of

billings on uncompleted

contracts 4,083,283 31,096,242 17,022,985

Amounts due from related

Companies 4,715 35,905 386,867

Inventories 819,097 6,237,834 5,655,156

Pre-contract costs 623,027 4,744,663 1,605,795

Deposit for acquisition

of businesses 2,089,591 15,913,283 44,750,000

Other current assets 4,796,102 36,524,716 21,035,434

Deferred income taxes 60,138 457,979 427,601

Total current assets 72,990,892 555,862,138 305,847,828

Investments in and advances

to affiliates 415,124 3,161,377 3,161,376

Office equipment, furniture

and motor vehicles 2,367,154 18,027,065 13,420,353

Less: accumulated

depreciation (919,935) (7,005,766) (6,958,874)

Net office equipment,

furniture and

motor vehicles 1,447,219 11,021,299 6,461,479

Intangible assets, net 4,071,309 31,005,050 36,207,527

Other non-current assets 231,475 1,762,796 45,383

Deferred income taxes 179,943 1,370,356 143,426

Goodwill 8,140,467 61,993,729 37,273,607

Total assets 87,476,429 666,176,745 389,140,626

YUCHENG TECHNOLOGIES LIMITED AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets (continued)

June 30, 2007 and Dec 31, 2006

Liabilities and owners’ equity 2007.6.30 2007.6.30 2006.12.31

USD RMB RMB

Current liabilities

Short-term loan 4,727,201 36,000,000 32,000,000

Current instalment of

long-term loan 459,589 3,500,000 3,500,000

Trade accounts payable 4,597,555 35,012,677 36,742,492

Billings in excess of costs

and estimated earnings on

uncompleted contracts 141,167 1,075,056 978,248

Employee and payroll accruals 724,922 5,520,643 2,671,365

Dividends payable to ex-owners 4,878,332 37,150,936 38,000,000

Income taxes payable 661,571 5,038,192 4,240,717

Due to related parties 119,223 907,948 907,948

Other current liabilities 2,167,434 16,506,093 22,177,691

Total current liabilities 18,476,994 140,711,545 141,218,461

Deferred income taxes 610,262 4,647,453 5,292,707

Total liabilities 19,087,256 145,358,998 146,511,168

Owners’ equity

Preferred stock, $0.0001 par

value, authorised

2,000,000 shares and none issued;

Common stock, $0.0001 par value,

authorised 60,000,000 shares;

9,528,320 shares and none

Issued and outstanding as of

December 31, 2006 and both of

December 31, 2005 and 2004 2,627,047 20,006,274 20,001,229

Additional paid-in capital 57,175,620 435,420,936 176,450,960

Reserves 2,492,961 18,985,144 18,985,144

Retained earnings 6,110,254 46,532,639 27,331,325

Accumulated other comprehensive

Loss (16,709) (127,246) (139,200)

Total owners’ equity 68,389,173 520,817,747 242,629,458

Total liabilities and owners’

Equity 87,476,429 666,176,745 389,140,626

YUCHENG TECHNOLOGIES LIMITED AND SUBSIDIARIES

Unaudited Consolidated Statements of Income

Three months ended June 30, 2007 and 2006

2007 Q2 2007 Q2 2006 Q2

USD RMB RMB

Revenues:

System Integration 5,761,721 43,878,384 33,342,344

Non-System Integration 4,664,260 35,520,673 29,792,013

Total revenues 10,425,981 79,399,057 63,134,357

Cost of revenues (6,695,258) (50,987,738)(42,694,055)

Gross profit 3,730,723 28,411,319 20,440,302

Operating expenses:

Research and development (201,458) (1,534,201) (851,561)

Selling and marketing (821,187) (6,253,750) (3,595,093)

General and administrative (1,191,141) (9,071,134) (3,850,358)

Subsidies and value-added tax

refunds 377,266 2,873,067 597,885

Total operating expenses (1,836,520) (13,986,018) (7,699,127)

Other income (expenses):

Interest income 86,994 662,504 46,340

Interest expense (14,644) (111,518) (161,107)

Equity in loss of affiliates -- -- (69,051)

Other income (expense), net 14,166 107,878 11,067

Income before income taxes 1,980,719 15,084,165 12,568,424

Income tax benefit (expense) 81,116 617,740 (1,539,792)

Amortization for intangible assets (273,956) (2,086,310) --

Net income 1,787,879 13,615,595 11,028,632

For further information, please contact:

In the U.S.A.

Mr. Jim Preissler

Advisor, Investor Relations

Tel: +1-646-383-4832

Email: jpreissler@yuchengtech.com

In Beijing, China

Ms. Wei Peng

Investor Relations

Tel: +86-10-6442-0533

Email: investors@yuchengtech.com