SEYI (Shieh Yih Machinery) Announces Second Quarter Results and Outlines Capital Raising Activities

TAIPEI, Taiwan, Sept. 2 /PRNewswire-Asia/ — On Tuesday, August 31, 2010,
SEYI (SHIEH YIH MACHINERY) (4533 TT), one of the world’s leading producers of
mechanical presses, released its audited financial results for the Six Months
Ended June 30, 2010 and announced plans for the issuance of 20,000,000 new
shares of common stock in September.

SEYI posted strong financial results for the Second Quarter of 2010. Net
Operating Revenue of TWD 951,968,000 (US $29,767,604) represented a 96%
increase over Net Operating Revenue in the same period last year. With
significantly higher sales levels and improved operating efficiencies, the
Company’s Gross Margin expanded to 24.9% in the most recent quarter. As a
result, profitability improved dramatically and SEYI reported Consolidated Net
Income of TWD 59,697,000 (US $1,866,704) versus a Consolidated Net Loss of TWD
68,724,000 (US $2,148,968) for the Second Quarter in 2009. Second Quarter
Earnings Per Share was TWD 0.49.

For the first six months of 2010, SEYI reported Net Operating Revenue of
TWD 1,492,177,000 (US $46,659,694), an 86% increase over Net Operating Revenue
of TWD 800,961,000 (US $25,045,685) during the same period in 2009.
Consolidated Net Income of TWD 47,880,000 (US $1,497,186) compared favorably
with a Consolidated Net Loss of TWD 101,010,000 (US $3,158,537) in 2009.
Earnings Per Share for the first six months of 2010 was TWD 0.39.

Both SEYI’s Taiwan and China operations have experienced dramatic sales
increases in 2010. Sales from SEYI’s Taiwan facility accounted for 57% of
total sales during the period, registering a 56% increase over 2009. Sales
from SEYI’s China plant, located in Kunshan, Jiangsu Province, accounted for
the remaining 43% of sales and more than doubled from the level achieved in
the prior year.

In commenting on SEYI’s first half results, Ms. Claire Kuo, Chairman and
Chief Executive Officer said, “Sales from China have been strong all year, and
this trend certainly continued into the Second Quarter. I am particularly
pleased, however, by the strong showing of our Taiwan operation during the
Second Quarter, as well as our Company’s return to profitability for both the
Second Quarter and the First Six Months of the year. Sales and profitability
trends continue to be strong at both facilities in July and August, Ms. Kuo
added.

SEYI also announced that on July 22, the Company received approval from
the Securities and Futures Bureau to issue 20 million new shares of the
Company’s common stock. The price for the new shares, which will be offered to
existing shareholders, has been set at TWD 11.30 (US $0.35).

The proceeds from the offering, which are expected to total approximately
TWD 226 million (US $7.1 million), will be used to strengthen the Company’s
balance sheet. “In addition to the actions we have taken to improve sales and
earnings over the past year,” Ms. Kuo said, “we are also taking strong
measures to improve SEYI’s capital structure. Combined with the offering of 20
million new shares which the Company completed in 2009, the capital raised in
this offering will greatly enhance the Company’s financial flexibility. Now
that the Company’s ongoing operations are on a sound footing, we are exploring
various strategic alternatives to expand the Company’s business, and a strong
financial position will enable us to take advantage of these opportunities as
they arise.”

SEYI expects the offering of its common stock to be completed by September
10.

About SEYI

Founded in 1962, SEYI has established a position of global leadership in
the press building industry over the past 48 years. SEYI manufactures
mechanical presses, ranging in size from 25 to 2400 tons, at facilities
located in Taiwan and the People’s Republic of China. At its original location
in Taoyuan, Taiwan, SEYI operates a 12,500 square meter facility, and in 2003
the Company began production in China at an 11,000 square meter facility
located in Kunshan, Jiangsu Province. Combined production capacity at the
Taoyuan and Kunshan plants approaches 4,000 presses annually. Construction of
a second 11,000 square meter facility in Kunshan was completed in 2009 and
will begin production in 2010. The new facility in Kunshan will manufacture up
to 300 presses annually, ranging in size from 300 to 4,000 tons. SEYI products
have been sold to customers in over 40 countries around the world, and the
Company is the dominant foreign supplier to China, India, South East Asia and
the Americas in terms of volume. SEYI is the recipient of numerous quality
awards from around the world.

The Company completed an initial public offering of its common stock in
2002 and is traded on the Taiwanese OTC (4533 TT) market.

    For further information contact:

     Fathi El-Farghali
     Director of Business Development
     203 Lemon Creek Dr. Unit A
     Walnut, California 91789 USA
     (O):   +1-909-839-1151 x207
     (M):   +1-626-675-9591
     Email: Fathi@seyiamerica.com
     Web:   http://www.seyi.com

     Kenneth Wei
     Spokesman
     446, Nan Shang Road,
     Kueisan, Taoyuan, Taiwan
     (O):   +886-3-352-5466
     Email: kenneth@seyi.com.tw
     Web:   http://www.seyi.com.tw

    Note: TWD 31.98 to USD1.0

SOURCE SEYI (SHIEH YIH MACHINERY)