Trunkbow International Holdings (NASDAQ:TBOW)

BEIJING, July 6, 2012 /PRNewswire-Asia/ -- Trunkbow International Holdings Limited (NASDAQ: TBOW) ("Trunkbow" or the "Company"), a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in China, today announced that the independent registered public accounting firm Holtz Rubenstein Reminick LLP ("HRR") has completed its review and audit of the Company's consolidated financial statements for the year ended December 31, 2009. Trunkbow has filed an amended 2010 annual report on Form 10-K/A with the U.S. Securities and Exchange Commission (the "SEC") containing HRR's audit report for the year ended December 31, 2009. There were no significant changes to the financial statements originally audited by the Company's outside auditors, Bernstein & Pinchuk LLP ("B&P").

In reviewing the Company's Annual Report on Form 10-K for the year ended December 31, 2010, the SEC informed the Company that because its Chief Financial Officer, Ms. Alice Ye, was previously employed by B&P, and had performed more than 10 hours of work on the Trunkbow audit for the year ended December 31, 2008, it did not consider B&P "independent" as defined in the SEC's rules regarding auditor independence. The Company disagreed, arguing that the hiring of Ms. Ye was in accordance with an exemption for such situations involving emergency or unusual circumstances approved by the Company's board of directors or audit committee, and noting the limited work performed by Ms. Ye and her status as a non-partner in B&P at the time.

In the interests of investor transparency and to avoid a complicated on-going regulatory process in recognition of the SEC Staff's position on this matter, the Company engaged HRR to review and issue a new audit report on its consolidated financial statements for the year ended December 31, 2009.

"With our business positioned for significant growth in the second half of 2012, we have placed a great emphasis on transparency and credibility to both our shareholders and U.S. regulators," said Mr. Qiang Li, CEO of Trunkbow. "This was a simple disagreement between our Company and the SEC on the technical application of independence requirements. We are pleased that the re-audit by HRR was completed without the need for any restatements or financial adjustments. There was no disruption to our business or our progress toward Trunkbow's long-term strategic objectives. We have a number of compelling growth initiatives planned for the remainder of 2012 and are excited by what the future holds for our Company, and for the MPS market as a whole.

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