Editorial Summary

Chinese online financial information and listed-company data provider China Finance Online Company, Ltd. (Nasdaq: JRJC) announced 2007 third quarter net revenues of US$7.3 million, up 28 percent quarter-on-quarter and 321 percent year-on-year, after market close on Tuesday, November 20. The company recorded a net income of $1.9 million, an increase of 22 percent from the second quarter of 2007 and 241 percent from the year-ago period. Eighty-four percent of net revenues in the quarter came from subscription service fees paid by individual customers, while 7 percent came from advertising services, 5 percent from Stockstar wireless value-added services (WVAS), and 3 percent from subscription fees paid by institutional customers. Through the end of the third quarter, the company had 8.1 million registered user accounts for jrj.com and stockstar.com, compared with 7.3 million in the previous quarter. The company's number of fee paying subscribers grew 22 percent quarter-on-quarter to 45,500. China Finance Online plans to close its acquisition of 85 percent of Hong Kong-based securities brokerage firm Daily Growth Investment Co. Ltd. in mid-December with the payment of approximately $3 million. Under the agreement, China Finance Online can purchase the remaining stake in Daily Growth within the next five years. China Finance Online will officially launch Fund Guru, its series of subscription-based analytical tools regarding mutual funds, in the fourth quarter. The company plans to hire an additional 500 telemarketers, on top of its current 260 telemarketers, in mid-2008. China Finance Online expects fourth quarter 2007 revenue to come in between $8.2 million and $9 million, and projects 2008 net revenues between $50 million and $60 million, an improvement from previous guidance of $45-$51 million.