Wowjoint Holdings (NASDAQ:BWOW)

BEIJING, May 11, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced it entered into an agreement to provide a tire gantry to a Peruvian company.

The agreement is with Titan Peru S.A.C., an import/export company in the construction industry, for a 50 ton Rubber Tire Gantry. The equipment is used for transporting precast concrete beams from the yard to the project site. The Company has started production and received 30% of the contract price as an advance payment. This is an initial contract with Titan Peru and we expect to have future contracts to export other Wowjoint products to Peru.

"We are pleased to have another new customer and to continue our International expansion with our first sale into South America," Mr. Yabin Liu, Chief Executive Officer of Wowjoint stated. "Our sales team has continued to focus on our expansion into new markets and we're pleased to see the progress we've made with the recent agreement with customers in Malaysia and now in Peru. Wowjoint has been successful in developing a sales team and business network covering East Asia, Southeast Asia, Europe, the Middle East, North American and South America. We are excited about the opportunities we have in these new markets."

BEIJING, May 2, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited (NASDAQ: BWOW, BWOWW and BWOWU) ("Wowjoint" or the "Company"), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, announced today that its application to transfer the listing of its ordinary shares, warrants and units from the NASDAQ Global Market to the NASDAQ Capital Market has been approved by NASDAQ.

This transfer will be effective at the opening of business on May 2, 2012, and the Company's ordinary shares, warrants and units will continue to trade under the symbols "BWOW", "BWOWW" and "BWOWU" respectively. The NASDAQ Capital Market is a continuous trading market that operates in the same manner as the NASDAQ Global Market and listed companies must meet certain financial requirements and comply with NASDAQ's corporate governance requirements.

In November 2011, the Company announced that it received notifications from NASDAQ, notifying it that it was not in compliance with the Minimum Market Value of Publicly Held Shares (MVPHS) of $5,000,000 and the $1.00 Minimum Closing Bid Price requirements. The Company was granted until April 30, 2012 to regain compliance with the $5,000,000 MVPHS requirement and until May 2, 2012 to regain compliance with the $1.00 Minimum Closing Bid Price requirement. In anticipation of not meeting the minimum bid price requirement before May 2, 2012, the Company, requested and received approval from NASDAQ to transfer from the NASDAQ Global Market to the NASDAQ Capital Market.

The Company currently meets the MVPHS requirement of the NASDAQ Capital Markets and it was afforded an additional 180 day compliance period until October 29, 2012, to regain compliance with the minimum bid price requirement while listed on the NASDAQ Capital Market. If the Company cannot demonstrate compliance within such period, NASDAQ will notify the Company of its determination to delist the Company's securities, which decision may be appealed to a NASDAQ hearings panel.

BEIJING, April 19, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited (NASDAQ: BWOW, BWOWW and BWOWU) ("Wowjoint" or the "Company"), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced the extension of the offering period for its previously announced exchange offer (the "Offer") for its 7,700,642 outstanding warrants (the "Warrants"). The Offer has been extended until 5:00 p.m., New York City time, on July 17, 2012.

The Offer was previously scheduled to expire at 5:00 p.m., New York City time, on April 18, 2012. Tenders of the Warrants must be made prior to the expiration of the Offer and may be withdrawn at any time prior to the expiration of the Offer.

The Company also announced today that its Board of Directors approved the extension of the Warrants' expiration date to May 15, 2013 (from May 15, 2012, the expiration date provided by the original terms of the Warrants). Except for the extension of the expiration date, the terms of the Warrants remain unchanged. Any and all Warrants properly exercised at $5.00, in accordance with the terms of the Warrants, prior to May 15, 2013, will be accepted by the Company, unless previously tendered in the Offer.

Warrant holders should review the Schedule TO, Offer to Exchange and other Offer materials (as they may be supplemented or amended) which the Company has filed or will file with the SEC and has provided or will provide to Warrant holders. Warrant holders who have previously tendered their Warrants do not need to take any other action unless they desire to withdraw their Warrants. Warrants may be withdrawn in accordance with the procedures described in the Offer materials.

The last reported trading price of the Warrants on the NASDAQ Global Market on April 17, 2012 was 0.03 per share. As of April 17, 2012, 3,005,558 Warrants have been tendered and not withdrawn.

BEIJING, April 20, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that the Company received a letter from the Listing Qualification Staff of the NASDAQ Stock Market LLC (the "Staff") on April 13, 2012, indicating that the Company had not paid the listing fee required by NASDAQ Listing Rules 5900. On April 18, 2012, the Company paid the applicable fees in full and thereby regained compliance of NASDAQ Listing Rules 5900.

The Company previously received notifications from NASDAQ that it was not in compliance with the Minimum Market Value of Publicly Held Shares (MVPHS) of $5,000,000 and the $1.00Minimum Closing Bid Price requirement. If the Company is unable to demonstrate compliance with the $5,000,000 MVPHS requirement before April 30, 2012 or unable to demonstrate compliance with the $1.00 Minimum Closing Bid Price requirement before May 2, 2012, the Staff will notify the Company that its securities will be delisted from the NASDAQ Global Market.

BEIJING, April 18, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it entered an agreement for Movable Scaffolding Systems in Malaysia. Wowjoint is also providing a business update on recent developments.

The Company entered an agreement to provide two Movable Scaffolding Systems ("MSS") for a project in Malaysia. The value of the agreement is approximately $2.6 million. Production began in April and delivery is expected to occur in September 2012. This is a new type of equipment for Wowjoint and it further expands its product range in construction machinery from providing not only machines for the precast arena, but now also non-prefabricated girder/beam bridge construction. The MSS is equipment that will initially be marketed for the Southeast Asian markets and we anticipate the demand for the equipment to be significant once the initial machine is deployed.

Wowjoint recently added new partners to enhance its sales force outreach in regions around the world, specifically in areas of Europe, South America and Southeast Asia. One of these partners will jointly market our handling machines, the Mobilift and Marine Hoist, in Europe and the Mediterranean regions. The Company has begun pursuing joint bids with this partner on port construction projects and hopes to enter the new field of port machinery soon.

In March 2012, Wowjoint's CEO led a sales and marketing team to participate in a conference and exhibition in Brazil. During that time, the Company met with a large number of companies in Brazil and Argentina. The trip provided the Company with a greater understanding of the Latin American markets, but also provided an introduction to Wowjoint and began discussions on future projects in the area.

Mr. Liu continued, "With the various new markets that Wowjoint is pursuing, we believe that we have a significant opportunity for growth in these vertical markets. Based on our knowledge of our industry, we believe that worldwide demand for machines such as the MSS, and the renewable energy sector machines could approach $100 million annually, thereby providing Wowjoint with potential customers within these segments. We have a strong team, including R&D, sales and marketing, to capitalize on these markets as well as other vertical markets and locations that we continue to pursue. With the addition of our R&D and manufacturing facilities that we announced in February 2012, we are excited about our future prospects."

Full Year Ended December 31, 2011

• Revenues for the full year ended December 31, 2011 were $24.4 million, a slight increase from the $24.1 million reported for 2010.
• The Company built and sold 12 machines during the year which represented $19.6 million, or 80% of total revenues.
• Technical service sales were $1.3 million, a decrease from the $5.1 million in FY 2010. Lease income for FY 2011, which began as a segment of revenue a year ago for the company, represented $3.5 million, or 14.4% of total revenues, an increase from $0.7 million in 2010.
• International based revenues accounted for approximately 26% of total sales.
• Gross profit for 2011 was $6.7 million, compared to gross profit of $6.0 million in the full year 2010, representing an 11% increase year over year. Gross margins increased to 27.3%, from 24.8% in the same period 2010. The 250 basis points gross margin increase was due to higher lease income and a higher margin product mix.
• Operating margin increased substantially to 8.6% compared to 2.6% in the prior year. During the year the Company entered into new markets and added staffing to enhance the Company's internal systems and control, yet the company was able to control costs and achieve an increase in operating profit.
• Net income was $1.2 million, or $0.15 per share based on 7.9 million weighted average shares outstanding, compared to net income of $0.4 million, or $0.06 per share based on 7.4 million weighted average shares outstanding for the full year 2010.

Operating expenses for 2011 were reduced to approximately $4.6 million, compared to $5.3 million in the same period of 2010. Selling expenses were flat year over year at $1.2 million. General and administrative expenses were $3.4 million and $4.2 million for the 2011 and 2010 periods, respectively, with the decrease due to the company's stringent focus on reducing costs.

"We are pleased with Wowjoint's progress during 2011. During the year we entered new vertical markets, new international locations and grew our sales force. We remain encouraged by the traction that we are achieving in these new markets and believe we will see the results over the next few years," stated Mr. Yabin Liu, Chairman and CEO of Wowjoint

2012 Guidance and Contract Backlog

Management issued revenue guidance for the first quarter of 2012 of approximately $1 to $2 million. The first quarter tends to be a slower quarter historically for the Company. Presently inChina, there has been a decrease in infrastructure spending, which has had an impact on projects the Company would be involved in. We anticipate this will change later in the year as spending on infrastructure returns. In addition, the Company is pursuing leasing, service and International contracts to subsidize the reduction in Chinese projects.

As of December 31, 2011, Wowjoint's backlog of signed contracts totaled approximately $16.3 million.

BEIJING, March 23, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited (NASDAQ: BWOW, BWOWW and BWOWU) ("Wowjoint" or the "Company"), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, announced today that it has commenced an exchange offer (the "Offer") for its 7,700,642 outstanding warrants (the "Warrants").

In connection with the Offer, the Company will exchange one ordinary share for every 15.9 Warrants tendered. The Offer will be open for at least twenty business days starting on March 22, 2012 and is scheduled to expire on April 19, 2012, at 5:00 pm Eastern Time. The terms and conditions of the Offer are set forth in the documentation to be distributed to holders of the Warrants. To participate in the Offer, holders must tender their Warrants in accordance with the instructions included in the Offer materials, no later than 5:00 pm Eastern Time on April 18, 2012.

The Warrants are comprised of 7,264,756 warrants outstanding as of March 19, 2012 and 435,886 warrants to be issued as a result of the payment of a special dividend by Wowjoint to its shareholders, which was previously announced on March 21, 2012. The Company will issue up to 484,317 ordinary shares in exchange for the Warrants. Assuming all of the Warrants are tendered, the Company expects to have approximately 8,862,474 ordinary shares issued and outstanding subsequent to the completion of the Offer and the payment of the special dividend.

"We're happy to announce this exchange offer to our warrant holders," stated Yabin Liu, Chief Executive Officer of Wowjoint. "We appreciate the support our warrant holders have provided to us since we became public almost two years ago. This event, in addition to the special stock dividend we are providing to our shareholders, demonstrates our confidence in the Company's future and should provide for a solid capitalization structure as we move forward."

BEIJING, March 21, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited (NASDAQ: BWOW, BWOWW and BWOWU) ("Wowjoint" or the "Company"), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, announced today that its Board of Directors has declared a special stock dividend on its outstanding ordinary shares.

The special 6% stock dividend will be payable on or about April 8, 2012 to shareholders of record as of March 31, 2012. Shareholders entitled to receive fractional shares will receive the number of shares as rounded up to the nearest whole share.

Yabin Liu, Chief Executive Officer of Wowjoint, commented, "We are pleased and excited to announce this special dividend to our shareholders. We believe that Wowjoint has a strong future and providing this special dividend is our way of sharing our belief with our shareholders."

BEIJING, Feb. 17, 2012 /PRNewswire-Asia/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it signed an agreement with the Zhenjiang City New District government which permits Wowjoint to establish a manufacturing and R&D facility in Zhenjiang City New District. Zhenjiang is located in Eastern China, about 2-3 hours northwest of Shanghai. Wowjoint established a new subsidiary for the property called Zhenjiang Wowjoint Heavy-duty Machinery Co. Ltd. ("Zhenjiang Wowjoint") following the agreement.

The new manufacturing facility under Zhenjiang Wowjoint will cover 200,000 square meters of land. Zhenjiang Wowjoint presently owns 48,000 square meters of the land and may purchase the remaining land in stages over the next couple of years. Construction will be split into two phases, with construction commencing in early 2012. Phase one has an estimated completion time of six months, which would be in late 2012. The new manufacturing facility will be focused on producing and providing maintenance services for Wowjoint's launch gantries, lifting equipment, railway transportation equipment and railway testing equipment.

In addition, Wowjoint established a new R&D center in Zhenjiang in conjunction with Beijing Jiaotong University's Yangtze River Delta R&D Transportation Institute in December 2011. Zhenjiang City New District government provided Wowjoint with 860 square meters of office building space at no cost to the Company. The new R&D center will concentrate on working with the new manufacturing facility, Zhenjiang Wowjoint, to supply enhanced equipment and services to our customers. It will specifically service customers around the Eastern China Yangtze River Delta area, Southern China and international market customers.

"Wowjoint hopes to expand our market share in China and internationally with our strategic development of the new manufacturing base and new R&D center in Zhenjiang," stated Mr. Yabin Liu, Chief Executive Officer of Wowjoint. "We believe it's in a beneficial location close to Shanghai and provides additional resources to capitalize on our international expansion plans."

Third Quarter 2011 Results

"Our gross margins remain strong and this quarter's increase was directly related to our diversification of our sales, specifically our international contracts, which provide a higher gross margin than our domestic contracts," commented Mr. Yabin Liu, Chairman and Chief Executive Officer of Wowjoint. "We continue to stay stringent on our spending, and in maintaining strong gross margins. During this quarter we were pleased to announce new leasing contracts, and the entry into the highway maintenance industry with our equipment for China's Ministry of Railway."

SecondQuarter Ended June 30, 2011

• Revenues for the Company's second quarter ended June 30, 2011 increased 228% to $8.4 million as compared to $2.6 million in the second quarter of 2010.
• Technical service sales were $0.3 million for the quarter, compared to $1.5 million in the same quarter last year. Lease revenue was $0.2 million for the second quarter 2011, which is a recent addition to Wowjoint's revenue stream and it will continue to be a focus for increased revenue due to its higher margins.
• International based revenues accounted for approximately 53% of total sales, an increase from 3% of total sales in the same period 2010.
• Gross profit increased substantially to $2.4 million from $0.6 million in the year ago period. Gross margins increased 570 basis points to 28.9% in the second quarter 2011 compared to 23.2% in the same period in 2010.
• Operating income increased to $1.5 million for the second quarter 2011 compared to a loss of $0.8 million for the second quarter 2010.
• Net income for the second quarter 2011 was $1.0 million, or $0.13 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $0.4 million in same period 2010.

Six Months Ended June 30, 2011

• Revenues for the six month period ended June 30, 2011 increased 250% to $15.0 million as compared to $4.3 million for the six month period ended June 30, 2010.
• Technical service sales for the first six months of 2011 were $1.0 million compared to $1.6 million in the same period in 2010. Lease revenues for the six months ended June 30, 2011 were $0.5 million.
• International based revenues accounted for approximately 41% of total sales, a substantial increase from 3% of total sales in the same period 2010.
• Gross profit increased to $3.8 million from $0.9 million in the year ago six month period. Gross margins increased 510 basis points to 25.5% in the first six months of 2011 compared to 20.4% in the same period in 2010.
• Operating income for the six months ended June 30, 2011 increased to $1.9 million for compared to a loss for the same period in 2010.
• Net income for the first six months of 2011 was $1.8 million, or $0.22 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $1.2 million in same period 2010

"Wowjoint continues to progress in reducing our accounts receivable and in expanding our sales. We've made significant headway in our International expansion efforts by adding people to our sales and marketing team and expect to see our International sales as a larger percentage of our sales revenue as the year's progress," stated Mr. Liu.

Business Updates 

Wowjoint continues to diversify its business and during the second quarter 2011, announced over $8 million in new lease agreements and deeper penetration into the China market by adding new customers. The Company is pursuing vertical markets such as highway and bridge maintenance, subway systems and clean tech power plants. These vertical markets will utilize Wowjoint's core competency of specialized engineering of large equipment. The Company is actively pursuing International contracts and has conducted outreach to numerous potential clients. During 2011, Wowjoint plans on attending conferences in the US and in other countries to enhance its visibility in the market.

"In recent months we've experienced a slight reduction in China's infrastructure spending, although projects still remain in the large government plan and the reduction is based on timing of those projects. To mitigate its impact, the Company has placed a concerted effort on International sales and in lease revenue. Wowjoint has signed $22.3 million in new contracts since the beginning of 2011, with a substantial percentage of those contracts being in either leasing, technical services or International sales," stated Mr. Liu. "A key competitive advantage remains our ability to produce custom-made equipment, which solves complex construction and logistical problems for our customers. We believe our determination and drive to expand our business into other countries and vertical markets will result in the growth Wowjoint is capable of."

Revenue Guidance and Contract Backlog

Management issued revenue guidance for the third quarter of 2011 of approximately $5 to $7 million. As of June 30, 2011, Wowjoint's backlog of signed contracts totaled approximately $22 million.

Previous Revenue Guidance was $8 to $10 million

BEIJING, July 22, 2011 /PRNewswire-Asia-FirstCall/ -- Wowjoint Holdings Limited ("Wowjoint," or the "Company") (Nasdaq: BWOW, BWOWU, BWOWW), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced it has signed a new equipment contract for a marine hoist.

Shenzhen Land Investment & Development Center, a government control center, signed a contract with Wowjoint for approximately $400,000 to purchase a 50 ton marine hoist. The marine hoist will be used as a yacht hoist in the 2011 Shezhen Universiade. This represents the second industry that Wowjoint has been able to penetrate with its customized marine hoist and is a large market that can lead to future sales.

"This contract with Shenzhen Land Investment & Development Center represents a substantial opportunity for Wowjoint and we are extremely pleased about our entry into this market," Mr. Yabin Liu, Chief Executive Officer of Wowjoint stated. "In February 2011, we entered the yacht industry with the sale of our marine hoist to Sunbird Yacht Company. Entering an additional market with our marine hoist demonstrates our focus on diversifying our revenue streams as well as our ability to utilize our core competency of engineering high quality machines that provide a value to our customers. We believe we will be able capitalize on our entry into this market as well as penetrating the yacht and wind power industries that we entered earlier this year."

Going forward, we anticipate that our additional annual cash needs resulting from being a public company will exceed US$1 million per year resulting from the hiring of additional accounting and financial staff; higher insurance and legal costs; the adoption of improved corporate governance procedures; and the upgrade of our information systems. Over the next two years, in order to achieve our business strategies, we also plan to make investments of approximately RMB20 million ($2.9 million) to purchase land and construct a new plant in the Beijing region. We are also seeking to enhance production efficiency and develop new products, while also seeking opportunities to expand our international operations, especially as high speed rail continues to develop globally. We might also consider complementary acquisitions, although none are currently under consideration. These capital investments and expansion plans will be financed primarily by funds on hand, operating cash flows and borrowings under our existing RMB50 million credit facilities with banks.

Based on the funds on hand, cash flows from our operating activities, and the available funds under our bank line, we believe that we have sufficient means to satisfy our near term liquidity needs and future obligations in the longer term.

First Quarter Results:

• Revenues for the Company's first quarter ended March 31, 2011 increased 282% to $6.6 million as compared to $1.7 million in the first quarter of 2010.
• Technical service sales increased by 675% from the first quarter of 2010 to $0.6 million. These services, as well as lease revenue, continue to be a focus for Wowjoint as they provide a more stable source of cash flows and a higher margin compared to machinery sales.
• International based revenues accounted for approximately 25% of total sales, a substantial increase from 3% of total sales in the same period 2010.
• Gross profit increased to $1.4 million from $0.2 million in the year ago period. Gross margins increased 5 basis points to 21.3% in the first quarter 2011 compared to 16.3% in the same period in 2010.
• Operating income increased to $0.3 for the first quarter 2011 compared to a loss for the first quarter 2010.
• Net income for the first quarter 2011 was $0.3 million, or $0.04 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $0.5 million in same period 2010.

"The first quarter revenue is a substantial increase from the first quarter 2010, due to continued infrastructure spending by the Chinese government, as well as our focus on diversifying our revenue stream through international sales, service and lease revenue. In addition, during the first quarter we expanded into two new vertical markets with sales to the luxury goods market providing hoists for Sunbird Yachts and the wind power industry with Tongliao Green," commented Mr. Yabin Liu, Chairman and Chief Executive Officer of Wowjoint. "Gross margins remain strong and will continue to improve as our technical services segment grows, which provides clearer visibility for our future revenue stream."

Management issued revenue guidance for the second quarter of 2011 of approximately $8 to $10 million. As of March 31, 2011, Wowjoint's backlog of signed contracts totaled approximately $25 million. As of May 19, 2011, the backlog of signed contracts has risen to $29 million.

Going forward, we anticipate that our additional annual cash needs resulting from being a public company will exceed US$1 million per year resulting from the hiring of additional accounting and financial staff; higher insurance and legal costs; the adoption of improved corporate governance procedures; and the upgrade of our information systems. Over the next two years, in order to achieve our business strategies, we also plan to make investments of approximately RMB20 million ($2.9 million) to purchase land and construct a new plant in the Beijing region. We are also seeking to enhance production efficiency and develop new products, while also seeking opportunities to expand our international operations, especially as high speed rail continues to develop globally. We might also consider complementary acquisitions, although none are currently under consideration. These capital investments and expansion plans will be financed primarily by funds on hand, operating cash flows and borrowings under our existing RMB50 million credit facility with Bank of Beijing. Based on the funds on hand, cash flows from our operating activities, and the available funds under our bank line, we believe that we have sufficient means to satisfy our near term liquidity needs and future obligations in the longer term.

Based on the funds on hand, cash flows from our operating activities, and the available funds under our bank line, we believe that we have sufficient means to satisfy our near term liquidity needs and future obligations in the longer term.

Fourth Quarter Highlights:

• Revenues for the Company's fourth quarter ended December 31, 2010 increased 581% to $11.0 million as compared to $1.6 million in the fourth quarter of 2009.
• Gross profit increased substantially to $3.2 million from a loss of $4.5 million in the year ago period. Gross margins increased markedly to 28.8%, from the previous quarter 2010, due to a higher percentage of technical services revenue, which has a higher gross margin.  
• Operating margins increased to 14% for the fourth quarter 2010 compared to a loss for the fourth quarter 2009.
• Net income for the fourth quarter 2010 was $1.3 million, or $0.17 per share based on 7.9 million weighted average shares outstanding, compared to net loss of $5.3million in same period 2009.

"The fourth quarter orders and backlog benefited from a sharp rebound in demand as the Chinese government further increased spending on large scale infrastructure projects. The recently implemented Five Year Plan includes a significant allocation of government dollars for large infrastructure projects which is anticipated to provide additional demand through the balance of 2011.  During the fourth quarter, we signed numerous new contracts with notable customers, including $4.5 million in service and leasing contracts and $3.5 million internationally, which confirms our ability to further diversify our revenue base." stated Mr.Yabin Liu, Chairman and Chief Executive Officer of Wowjoint. "In general, gross margin has improved noticeably due to the increased importance of our technical services segment, which provides clearer visibility for our future revenue stream, helps us better serve our customers and increases customer loyalty."

Management issued revenue guidance for the first quarter of 2011 of approximately $6 to $7 million. As of December 31, 2010, Wowjoint's backlog of signed contracts totaled approximately $20 million, which remains consistent from the backlog at the end of the third quarter of 2010. As of March 24, 2011, the backlog of signed contracts has risen to $25 million.

• Revenue in the range of $10.0 - $12.0 million, an increase from the initial guidance of $9.2 - $9.5 million.
• Gross profit of $2.5 - $3.2 million 
• Net income in the range of $1.0 - $1.3 million 
• Earnings per share of $0.14 - $0.17 

Wow joint has continued to execute on its growth strategy by winning contracts with new and existing customers in China and securing International orders. Increased demand for the Company's products, supported by enhanced sales and marketing efforts, has enabled Wow joint to dramatically improve its financial results for the second half of 2010. Key additions to its sales force has been instrumental in expanding the pipeline of new business, which management believes will translate to further growth in 2011. Wow joint is well positioned to take advantage of the $1.1 trillion infrastructure spending that China has planned from 2009 to 2020, in addition to driving incremental growth through its International channels and through new vertical applications. .

Company presentation as of February 20th, 2011

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BEIJING, Feb. 21, 2011 /PRNewswire-Asia/ -- Wowjoint Holdings Limited today announced it has signed $5 million in new equipment contracts.

The first contract totaling $4 million is with China Railway 16th Bureau's No. 5 Engineering Company, for a 900 ton tyre trolley and a 900 ton launching gantry. Both machines are being custom designed to pass through a tunnel, resulting in a narrower and lower machine that still possesses Wowjoint's traditional high functionality.  The machines will be utilized in the construction of the Shanghai-Kunming high-speed railway. This represents the 13th order we have received from China Railway in the past 12 months and the 41st high-speed railway contract we have won since we introduced these products.

"Wowjoint is pleased to receive this new order as we further extend our strong relationship with China Railway 16th Bureau. Our equipment offers a high level of special functionality needed to complete the project, while allowing ease of passage through the tunnels during the high-speed railway construction," Mr. Yabin Liu, Chief Executive Officer of Wowjoint remarked. "With a robust pipeline of new railway projects, we continue to see tremendous sales momentum and opportunities in China and abroad."

Sunbird Yacht Company ("Sunbird"), China's largest yacht manufacturer and the only publicly listed China-based yacht company, signed a $1 million contract with Wowjoint to purchase two 150 ton tyre marine hoists. The tyre marine hoist, a new machine developed and designed solely by Wowjoint, represents the first sale into the yacht industry and provides a significant competitive advantage in pursuing additional contracts within this growing niche market.  This contract represents the first sale of this product into the yacht industry.

Second-quarter Ended June 30, 2010:

• Revenues for the Company's second quarter ended June 30, 2010 were $2.6 million as compared to $1.7 million in the first quarter of 2010, and $8.4 million in the three month period ended June 30, 2009.

"he year-over-year decline in revenue is primarily attributable to a reduction in government spending beginning in late 2009 on large infrastructure projects, resulting in a significant reduction in new contracts being awarded for railway, highway and bridge projects. Government budgeting for large infrastructure projects has recently increased, which has in turn positively impacted Wowjoint's sales pipeline and backlog."

• For the three months ended June 30, 2010, the Company reported a net loss of $0.8 million, or $.10 per share based on 7.9 million weighted average shares outstanding, compared to net income of $1.7 million for the three months ending June 30, 2009.

  "Our financial results for the second quarter of 2010, while still disappointing, showed a slight increase over the first quarter of 2010," stated Mr. Yabin Liu, Chief Executive Officer of Wowjoint. "Our business continued to be impacted directly by government decisions and timing associated with major infrastructure purchases for new projects.  While the effects of this policy were reflected in our second quarter 2010 financial results, China's fiscal policy is becoming more accommodative again, which is resulting in an increase in government budgeting for large infrastructure projects and in the current flow of potential contract activity. As a result, our contract backlog grew and we expect to see a significant improvement in our financial performance in the second half of 2010.  It is important to note that management believes the recent short-term shift in government spending only resulted in a delay in these high-value infrastructure projects, and shall not have an effect on the long-term plans for these projects.  Furthermore, we continue to work on diversifying our revenue stream as shown by our substantial growth in technical services sales during the second quarter of this year."

    "Contract activity is improving and our sales and marketing team has made progress as we look for business opportunities both domestically and abroad," added Mr. Liu. Our recently announced sales contract with China Railway Group combined with the recently announced equipment lease and service agreements with China Railway Construction Company and China Railway Group bring the value of contracts announced since July 29th to approximately $11 million. Given the proprietary design of our equipment, our innovative engineering expertise and our market position, we expect to capitalize on long-term trends which benefit our business. To complement our growth and speed the sales cycle, we are investigating alternative business models, such as equipment leasing, which would enable us to capture additional share of customer expenditures on construction equipment."

 "Given the fact that the construction equipment business consists of large, long lead-time contracts subject to macro-economic factors, our business and our financial results are, by definition, difficult to predict and are extremely 'lumpy' in nature on a quarter to quarter basis.

Revenue Guidance and Contract Backlog

Management issued revenue guidance for Q3 2010 of approximately $8.0 million, as current backlog of signed contracts totals approximately $17.0 million, up from $13.1 million at the end of the first quarter 2010.

ON November 30, 2009 China Fundamental Acquisition Corporation announced that it has entered into a definitive share purchase agreement to acquire Beijing Wowjoint Machinery Co., Ltd. and its associated companies. 

Wowjoint Details:

• Wowjoint is a leading solutions provider and manufacturer of specialized heavy duty lifting and carrying machinery in China, deployed primarily in the construction of railways, highways, subways, bridges and ports.
  
• Consolidated revenue for year ended August 31, 2009 was $44.6 million, a 23.2% increase from 2008
  
• Net income for year ended August 31, 2009 was $9.7 million, a 148.4% increase from 2008
  
• Wowjoint projects consolidated revenues of $50-$55 million for year ended August 31, 2010, with net income of $11.5-$12.5 million

Transaction details:

• Under the terms of the definitive agreement, Wowjoint’s shareholders will be issued an aggregate of 5,700,000 ordinary shares of China Fundamental in exchange for 100% of the outstanding shares of Wowjoint.
  
• Assuming a 35% redemption and no exercise of China Fundamental’s outstanding warrants, Wowjoint shareholders will own approximately 60% and China Fundamental’s current shareholders will own approximately 40% of the combined company following the acquisition.
  
• Assuming 35% of China Fundamental’s shares are redeemed, there would be a total of 9.53 million shares outstanding.
  
• If all 7,264,756 outstanding warrants of China Fundamental were exercised, a total of 16.80 million shares would be outstanding on a fully diluted basis or a total of 12.25 million ordinary shares outstanding using the treasury stock method.  The warrants have an exercise price of $5.00 per share.
• possible issuance of an additional 2,800,000 ordinary shares if the funds left to the combined company following the closing are $1,250,000 or less.

Shareholder vote date: 8 a.m. EST on February 12, 2010.

Earn-out Shares associated with proposed business combination:

500,000 ordinary shares of China Fundamental will be issued to Wowjoint’s major shareholders when certain share price targets are achieved or exceeded:

• 200,000 earn-out shares in the event that the closing price per share is at or above US$10.00 for 180 days out of 360 days during the period from the acquisition closing date to the second anniversary of the closing date
  
• 200,000 earn-out shares in the event that the closing price per share is at or above US$13.80 for 180 days out of 360 days during the period from the acquisition closing date to the third anniversary of the closing date
  
• 100,000 earn-out shares in the event that the average daily trading volume is no less than 200,000 shares for three consecutive months during the period from the closing date of the acquisition to the second anniversary of the closing date.

The 500,000 earn-out shares excludes the possible issuance of an additional 2,800,000 ordinary shares if the funds left to the combined company following the closing are US$1,250,000 or less.