Shanghai Fudan Microelectronics Group Company Limited provided group earnings guidance for the first quarter ended March 31, 2012. Based on its preliminary review of the unaudited management accounts of the company and its subsidiaries, it is expected that the Group will record a significant decrease in its unaudited profit attributable to owners of the parent for the three months ended March 31, 2012 when compared with the unaudited profit attributable to owners of the parent in the corresponding period in 2011. The main reasons for the decrease in profit during the first quarter of 2012 are: increase in application of resources for the research and development of marketing products; slow in sales of electronic consumer IC cards due to changes in policies; and in the last corresponding period, there were specified regional projects of citizen cards and resident cards launched into the market simultaneously.