FUQI International Provides Preliminary First Quarter 2008 Financial Results

-- 1Q08 Revenue Expected to be in $76-$77 Million Range which Exceeds Previous
Forecast

SHENZHEN, China, April 17 /Xinhua-PRNewswire-FirstCall/ -- FUQI
International, Inc. (Nasdaq: FUQI), a leading designer of high quality
precious metal jewelry in China, developing, promoting, and selling a broad
range of products in the large and rapidly expanding Chinese luxury goods
market, today announced that after initial review of its operating results for
the 2008 first quarter, and internal forecasts for the remainder of the year,
management sees operating results for its business substantially ahead of its
most recent financial guidance provided at the time the Company reported its
fourth quarter and fiscal 2007 financial results. Management now anticipates
first quarter 2008 revenue of US$76-$77 million, net income of $5.7-$5.8
million and diluted EPS of $0.27-$0.28. Preliminary first quarter financial
results include an expected contribution of approximately $1.0-$1.1 million
from the Company's two jewelry retail counters. This new guidance replaces
management's previous forecast of wholesale revenue of approximately US$62
million, net income in the range of $4.0-$4.4 million, and diluted EPS of
$0.19-$0.21. Gross margin for the first quarter is expected to be
approximately 11%, and net margin is expected to be approximately 7.5%.
The Company has also raised its financial forecast for the 2008 fiscal
year. The Company now anticipates total wholesale revenue of approximately
US$290-$300 million, net income of $18.9-$19.5 million, and diluted EPS of
$0.85-$0.90. This updated guidance replaces management's previous 2008
forecast of wholesale revenue of approximately US$235-$250 million, net income
of $15.3-$17.5 million, and diluted EPS of $0.70-$0.80. In 2008, the Company
expects to continue to sustain long term wholesale gross margins in the 10.5%
range, in line with its historical average, with additional gross margin
upside as its branded retail business becomes more meaningful to overall
sales.
Mr. Yu Kwai Chong, Chairman of FUQI International commented, "We continue
to see strong growth in our wholesale business and believe that our efforts to
increase FUQI's brand awareness are paying off. The biggest drivers of growth
came from deeper penetration and larger orders placed by existing customers
and from our enhanced working capital position which has expanded our offering
of sophisticated, fashionable gold and platinum jewelry products. We believe
these factors will provide continued momentum in our business as we progress
through 2008. The jewelry market in China remains very healthy and as a
leading, well-capitalized jewelry supplier in China, we believe we have great
potential to further expand our sales channels. The continued growth of our
wholesale business combined with our retail sales rollout provides us with a
compelling opportunity to expand our market position in China in 2008 and
beyond.''
This updated 2008 financial guidance does not take into consideration any
potential acquisitions that the company may be contemplating. The Company
expects to report final Q1 2008 financial results during the first half of May
2008.
About FUQI International, Inc.
Based in Shenzhen, China, FUQI International, Inc. is a leading designer
of high quality precious metal jewelry in China, developing, promoting, and
selling a broad range of products in the large and rapidly expanding Chinese
luxury goods market.
Safe Harbor Statement
The statements set forth above include forward-looking statements that may
involve risk and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such risks and
uncertainties include, but are not limited to, the vulnerability of the
Company's business to a general economic downturn in China; fluctuation and
unpredictability of costs related the gold, platinum and precious metals and
other commodities used to make the Company's products; changes in the laws of
the PRC that affect the Company's operations; the Company's recent entry into
the retail jewelry market; competition from competitors; the Company's ability
to obtain all necessary government certifications and/or licenses to conduct
its business; development of a public trading market for the Company's
securities; the cost of complying with current and future governmental
regulations and the impact of any changes in the regulations on the Company's
operations; and other factors detailed from time to time in the Company's
filings with the United States Securities and Exchange Commission and other
regulatory authorities. The forward-looking statements are also identified
through use of the words ''believe,'' ''enable,'' ''may,'' ''will,''
''could,''
''intends,'' ''estimate,'' ''anticipate,'' ''plan,'' ''predict,''
''probable,''
''potential,'' ''possible,'' ''should,'' ''continue,'' and other words of
similar meaning. Actual results could differ materially from the expectations
contained in forward-looking statements as a result of several factors,
including regulatory approval requirements and competitive conditions. These
and other factors that may result in differences are discussed in greater
detail in the Company's reports and other filings with the Securities and
Exchange Commission.
SOURCE FUQI International, Inc.

Dexter Fong, Executive VP of Corporate Development of FUQI International,
Inc., +1-408-786-5540; or in the U.S., Bill Zima, +1-203-682- 8200 (Investor
Relations), or in Asia, Xuyang Zhang, +86-10-8523-3087 (Investor Relations)
both of ICR Inc. for FUQI International, Inc.