The voting results on the items submitted for shareholder approval were as
follows:

    Proposal 1:     The election of three Class I directors to serve until the
                    annual meeting of shareholders in 2012 or until their
                    successors are duly elected and qualified.


       Director Name            For            Against      Abstain
       Mr. Ming Zhu            2,621,631        --          15,947
       Dr. Dong Cheng          2,621,631        --          15,947
       Mr. Brian Lin           2,621,631        --          15,947


    Proposal 2(A):  The approval of an increase in the number of members of
                    the Company's Board of Directors from seven persons to a
                    range of between seven and eleven persons.


              For                   Against                  Abstain
           2,514,086                123,192                     300


    Proposal 2(B):  The election of one Class II director to serve until the
                    annual meeting of shareholders in 2010 or until his
                    successor is duly elected and qualified, and the election
                    of one Class III director to serve until the annual
                    meeting of shareholders in 2011 or until his successor is
                    duly elected and qualified.


      Director Name          For              Against          Abstain
       Weiquan Ren          2,574,615           --             62,963
       Deliang Tong         2,548,443           --             89,135


    Proposal 3:    The approval of the 2009 Share Incentive Plan.


           For             Against            Abstain      Broker Non-Votes
        1,287,065          23,966             21,236         1,305,311


    Proposal 4:    The approval of the split of the Company's shares at such
                   time and on such terms as the Board of Directors may
                   determine.


              For                   Against                  Abstain
           2,563,807                35,667                   38,104

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (NASDAQ: EFUT - News) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front- end supply chain (from factory to consumer) market, especially in the retail and fast moving consumer goods ("FMCG") industries. eFuture currently serves over 15 Fortune 500 companies, over 1000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has over 600 employees and 20 branch offices across China.

For more information about eFuture, please visit http://www.e- future.com.cn/ .

For investor and media inquiries, please contact: Investor Contact: Troe Wen, Company Secretary eFuture Information Technology Inc. Tel: +86-10-5293-7699 Email: ir@e-future.com.cn Investor Relations (HK): Ruby Yim Taylor Rafferty Tel: +852-3196-3712 Email: eFuture@Taylor-Rafferty.com Investor Relations (US): Mahmoud Siddig Taylor Rafferty Tel: +1-212-889-4350 Email: eFuture@Taylor-Rafferty.com Media Contact: Jason Marshall Taylor Rafferty Tel: +1-212-889-4350 Email: eFuture@Taylor-Rafferty.com

    Financial Highlights - Third Quarter 2009

    RMB                                 Unaudited              Unaudited
                                      Quarter Ended          Quarter Ended
                                    September 30, 2008     September 30, 2009
                                   Reported     Restated
    Profit and Loss
     (selected)
    Total Revenue                 27,357,120   27,357,120       25,212,578
    Total Cost of Revenue         14,265,327   14,265,327       15,570,716
    Gross profit                  13,091,793   13,091,793        9,641,862
    Total Expenses                12,560,484   12,567,783       15,514,887
    Income (loss) from
     operations                      531,309      524,010       (5,873,024)
    Net Income (loss)            (28,055,290)   7,559,384       (4,162,706)
    Comprehensive Income/Loss                   7,559,384       (4,162,706)
    Net Income per share
    Basic                              (8.93)        2.41            (1.24)
    Diluted                            (8.93)        2.41            (1.24)


    -- The significant change from net loss to net income for the third
       quarter 2008 after the restatement of 2008 results was due to the
       application of different accounting treatments on the Company's
       convertible note.
    -- Total revenues decreased 7.84% year-over-year to RMB25.21 million
       (US$3.69 million).
       -- Service fee income increased 30.84% year-over-year to RMB10.60
          million (US$1.55 million).
       -- Revenue from software license sales decreased 16.82% year-over-year
          to RMB13.81 million (US$2.02 million).
       -- Revenue from hardware sales decreased 69.83% year-over-year to
          RMB0.80 million (US$0.12 million) in the third quarter of 2008.
    -- Gross profit decreased 26.35% year-over-year to RMB9.64 million
       (US$1.41 million).  Gross margin decreased to 38.24% from 56.05% in the
       third quarter of 2008.
    -- Operating loss was RMB5.87 million (US$0.86 million), compared to
       operating income of RMB0.52 million in the third quarter of 2008.
    -- Net loss was RMB4.16 million (US$0.61 million), compared to net income
       of RMB7.56 million in the third quarter of 2008.
    -- Diluted net loss per share was RMB1.24 (US$0.18), compared to net
       income per share of RMB2.41 for the third quarter of 2008.
    -- Operating cash flow was -RMB15.22 million (-US$2.23 million).
    -- Adjusted net income (non-GAAP) reduced 94.37% year-over-year to RMB0.71
       million (US$0.10 million).
    -- Non-GAAP adjusted diluted earnings per share was RMB0.21 (US$0.03).

Management Strategic Imperatives:

eFuture's management initiated four key strategic priorities to build shareholder value by strengthening financial reporting and management and operational efficiency, realigning sales and marketing initiatives and investing in R&D to expand the Company's addressable markets.

Financial Enhancement - Restatement Completed -- As announced on June 19, 2009, the Company determined to adjust its financial results for 2007, 2008 and the first quarter of 2009. As of November 19, 2009, the Company has completed its financial review and restatement of results, and believes that all outstanding issues regarding the periods in question have been satisfactorily rectified. -- The adjustments were made in 3 specific areas: (i) establishing a RMB7.02 million depository reserve for employees' social security; (ii) correcting the timing of the Company's recognition of revenues upon sales of some of its software products, and (iii) allocating costs of revenues based on labor costs. Both (i) and (ii) have no material change to the reporting of costs of revenues. -- In conjunction with its financial review, management has implemented decisive measures to improve eFuture's internal financial controls and systems, including implementing an extensive review of its accounting procedures that benchmark industry best practices. In addition, to further bolster its financial controls, the company appointed Grant Thornton as its independent registered accounting firm. Management believes that its financial reporting and controls have been significantly improved as a result of this process. Management and Operational Enhancements -- As announced on December 4, 2009, eFuture appointed Mr. Dehong Yang in the newly created position of President. -- Mr. Yang, who will officially enter into his new role on January 1, 2010, has upwards of 10 years experience in international business and global best practices, as well as a proven track record of successfully implementing and driving strategic initiatives. Mr. Yang brings to eFuture extensive experience in the retail, e-commerce and distribution markets having held senior roles at leading international IT companies including Wincor Nixdorf and IBM. -- In his new role as President of eFuture, Mr. Yang will be responsible for company wide operations, and will support the development and execution of eFuture's key strategic priorities, which include: -- To review and implement a competitive cost base aligned with industry-benchmarked companies to enhance profitability; -- To review and develop eFuture's sales and marketing strategies to effectively strengthen leadership positions and expand the Company's market share and addressable markets; -- To review and devise strategic plans designed to create a world- class operational platform with systems that enhance the efficiency in the evaluation of business potentials and sales performance, deployment of resources and R&D investment to help eFuture capitalize on the strong growth opportunities in China's rapidly growing retail and consumer goods software and services industry. Sales and Marketing restructuring -- Currently, 80% of the Company's revenue come from clients in 8 out of 19 provinces in tier-one cities. In order to expand its addressable markets geographically, the Company has initiated an extensive sales and marketing campaign in early 2009 designed to reach into tier-two and tier-three cities. -- Since early 2009, the Company has redeployed approximately 35% of its sales force to expand new client development in tier-two and tier-three cities in China. Management deems this initiative as a critical building block of the Company's growth strategy to significantly increase the geographical reach for its services. The Company has made solid progress in the following areas: -- At the end of the second quarter 2009, the Company had expanded its sales and marketing outreach efforts in two, one and 40 tier-two, tier-three and tier-four cities, respectively, significantly strengthening its pipeline. -- At the end of the third quarter 2009, eFuture had further increased its sales and marketing outreach in 4, 37 and 64 tier-two, tier- three and tier-four cities, respectively, resulting in the development of 1,287 new business leads. -- In conjunction with its sales force redeployment, eFuture has invested approximately RMB7.5 million in a new marketing initiative plan. The goal of this plan is to support the expansion of the Company's geographic coverage by deepening its penetration in China's tier-two and tier-three cities, while providing seamless support for its global and top accounts as they look to expand into these regions in China. -- As of December 7, 2009, the Company's pipeline has grown to over 1,000 clients with operations in 350 cities across China. Management believes this deep pipeline will help to generate new contract signings beginning in 2010. -- As a component of its sales and marketing plan, and in addition to the restructuring of its Small and Medium Businesses ("SMB") business unit, the Company has also established a new specialized marketing team with approximately 50 staff distributed across China in order to speed up the sales cycle, bolster sales and increase eFuture's market share in all the key markets in China.

Investment in R&D

Over the last nine months, management has increased investment in new products and services to RMB6.90 million to increase revenue potential from existing clients and drive the expansion of eFuture's addressable markets:

-- eFuture Business Intelligence ("BI") Solutions -- eFuture's fully integrated suite of BI software solutions provide retailers with the ability to better understand customer buying behavior, to drive sales and profitability, to decrease supply chain costs, and to reduce operational costs. -- eFuture BI integrates data from across the customer's enterprise, and provides easily accessible self-service reporting and analysis. -- The Company developed and launched its BI solutions to address the needs of its Key Account Strategic Business Unit ("SBU") in three areas: marketing, operations and merchandizing. -- The Company is currently conducting a trial with one client to ascertain the market reception and potential of this product line. -- eFuture ONE CRM -- eFuture ONE CRM provides a robust platform for retail and consumer clients to analyze customer and transactional data in order to strategically profile and segment customers to predict their future behavior. -- Specific solutions offer profiling and segmentation of retail outlets based on transaction history and trade area demographics; market-basket analysis for determining which products are likely to be purchased together; tracking of customer movement between segments; analysis of customer behavior and price sensitivity; and customized reports of customer data based on a variety of inputs. -- The eFuture CRM system is specifically designed to cater to the growing needs of customers in our Department Store SBU. -- Thus far in 2009, the Company has successfully completed CRM pilot programs with a few major Beijing-based department store groups, with positive market reception. Business and Operational Highlights: Core Business (Software License, Hardware and Service Businesses) -- The economic downturn had a significant impact on the Company's hardware business in the second quarter of 2009, as customers, especially in the Logistics, Department Store and Supermarket SBUs, delayed new store openings. This sudden decrease in the Company's new project pipeline in turn impacted revenue contribution from these SBUs in the third quarter 2009. -- However, customers maintained a solid level of investment in upgrading systems in existing stores. As a result, the Company closed over 625 new contracts through the third quarter of 2009 for an aggregate of approximately RMB93.7 million in the first three quarters of 2009. The Company believes these new contracts reflect signs of a rebound in the Department Store and Supermarket SBUs. -- Despite the slowdown, revenue from existing clients remained relatively stable with revenue reaching RMB20.45 million for the third quarter of 2009. -- Management believes there are now positive signs of a market rebound, as total new contracts for the third quarter 2009 increased by 84% year-over-year to 285, representing RMB36.9 million, or a year-over- year increase of 12.8%. -- The Company entered into strategic relationships with Microsoft Corporation ("Microsoft") to provide a standardized POS-ERP system for retailers in China. This system will integrate Microsoft Windows Embedded POSReady 2009 into eFuture's POS-ERP Store Operation System. Management expects that leveraging eFuture's nationwide retail customer base and Microsoft's worldwide reputation will allow eFuture to deliver a reliable and seamlessly integrated POS solution to companies throughout China.

eService Business

In line with eFuture's organic growth strategy to expand its eService offering, the Company is bbeginning to see growing interest from existing clients to scale-up and expand their relationship with eFuture by utilizing its eService applications.

    -- The Company started to deploy the bundled package offering bFuture SCM
       SaaS service with POS-ERP in two SBUs, the Department Store and
       Shopping Mall SBU and the Grocery Business SBU.
    -- The Company has installed and is currently serving three retailers and
       their 3,000 suppliers with the bundled POS-ERP package.  In addition,
       over 10 retailers are in the process of deploying the package.
       Following deployment, these retailers will be able to open SaaS
       services with their suppliers.  We expect to see more profitable growth
       from this service as we increase the scale of the operation.

Mr. Adam Yan, Chairman and Chief Executive Officer of eFuture, said, "Our results for the quarter were impacted by decreased sales from our Logistic, Supermarket and Department Store customers, many of whom delayed plans for new store openings in the second quarter of 2009 as result of the economic downturn, which in turn affected the revenue contribution from these segments in the third quarter. As both the Supermarket and Department Store SBUs together accounted for just under half of our revenue for the third quarter, this impact was significant. However, we see very encouraging signs of a recovery, especially in our Logistics SBU, which secured new contracts valued at approximately RMB20 million during the third quarter of 2009.

"More importantly, we have continued to invest throughout the downturn in our business with the goal of creating more stringent financial controls, a more efficient operating platform, a more focused sales and marketing strategy, and more robust R&D capabilities. Our efforts to achieve these goals began by initiating four key strategic imperatives, beginning with the enhancement of our internal financial controls and the restatement of our results for certain periods; enhancement of our management team and operational structure with the hiring of Mr. Dehong Yang as President; a realignment and refocusing of our sales and marketing efforts to build market share in all key markets in China including tier-two and tier-three cities; and, continued investment in R&D which has led to the introduction of a number of new products including our eFuture BI Solution and eFuture ONE CRM.

"I am pleased to see progress made across all of our key strategic imperatives to date. However, we recognize that a good deal of work lies ahead of us. Despite recent challenges, we continue to believe that our leading position in a fragmented market, growing nationwide coverage, robust product and services portfolio, strong brand recognition among local and international clients, partnership with leading global technology companies, and large installed base of customers will continue to position us well to capitalize on the strong growth catalysts within our industry. We will continue to execute on our growth strategy to invest in innovation, expand our customer base in tier-two and tier-three cities, and actively pursue domestic and international clients, while maintaining an unwavering commitment to build long-term shareholder value."

Third Quarter 2009 Unaudited Financial Results

Revenue

Revenue for the third quarter decreased 7.84% to RMB25.21 million (US$3.69 million) from RMB27.36 million in the third quarter 2008 mainly due to a slow-down in hardware and software sales.

Software license revenues decreased by 16.82% year-over-year to RMB13.81 million (US$2.02 million), primarily attributable to decreased sales in our Supermarkets, Logistics and Department Store and Shopping Mall SBUs, as customers within these segments were affected by the economic slow-down.

Service fee income increased by 30.84% year-over-year, and as a percentage of revenue continued to increase and accounted for 42.05% of total revenue in the third quarter, as compared to 29.62% in the same period last year.

    Revenue Breakdown

                  Unaudited Quarter Ended
                    September 30, 2008        Unaudited Quarter Ended
                      (as restated)              September 30, 2009
                     RMB (thousands)        RMB          USD    Year Over Year
                                       (thousands)  (thousands)     Change
    Software
     license sales         16,602         13,810        2,023       -16.82%
    Hardware sales          2,651            800          117       -69.83%
    Service fee
     income                 8,104         10,603        1,553        30.84%
    Total                  27,357         25,213        3,694         7.84%

Cost of Revenues

The cost of revenue for the third quarter increased 9.15% to RMB15.57 million (US$2.28 million) from RMB14.27 million in the third quarter 2008.

    Cost of Revenues Breakdown

                            Unaudited
                          Quarter Ended
                        September 30, 2008      Unaudited Quarter Ended
                          (as restated)            September 30, 2009
                         RMB (thousands)      RMB       USD     Year Over Year
                                          (thousands)(thousands)    Change

    Cost of software
     license sales              5,313         4,380       642       -17.56%
    Cost of hardware
     sales                      2,026           650        95       -67.92%
    Cost of service fee         2,698         6,450       945       139.03%
    Amortization of
     acquired technology        3,337         3,063       449        -8.20%
    Amortization of
     software costs               892         1,028       151        15.29%
    Total                      14,265        15,571     2,281         9.15%

The increase in cost of service fee income was primarily due to the accounting adjustment made to the reallocation of work in progress from inventory to cost of revenues.

Gross Profit

Third quarter 2009 gross profit decreased 26.35% year-over-year to RMB9.64 million (US$1.41 million), from RMB13.09 million in the third quarter of 2008. Consolidated gross margin for the third quarter of 2009 was 38.24% compared with 56.05% in the third quarter of 2008.

Operating Expenses

Research and development expenses for the third quarter of 2009 increased 90.89% year-over-year to RMB427,195 (US$62,582) compared with RMB223,792 in the third quarter of 2008. The year-over-year increase was a result of recognition of R&D expenses related to products which have not yet reached feasibility.

General and administrative expenses for the third quarter of 2009 decreased 11.10% year-over-year to RMB7.17 million (US$1.05 million), or 28.45% of total revenues, compared with RMB8.07 million, or 29.50% of total revenue in the third quarter of 2008. The decrease in general and administrative expenses as a percentage of revenues was primarily due to increased office maintenance expenses.

Selling and distribution expenses for the third quarter increased 85.13% year-over-year to RMB7.91 million (US$1.16 million), or 31.39% of total revenues, compared with RMB4.27 million, or 15.63% of total revenue in third quarter 2008. The increase was due to our continued investment in building our regional sales/marketing teams to enhance our presence in tier-two and tier-three cities.

Operating Income/Loss

Operating loss in the third quarter was RMB5.87 million (US$0.86 million), compared with an operating income of RMB0.52 million in the third quarter of 2008.

Net Income/Loss and EBITDA

As a result of the foregoing, third quarter net loss was RMB4.16 million (US$0.61 million) compared with a net income of RMB7.56 million in the third quarter of 2008.

Basic and diluted losses per share in the third quarter were both RMB1.24 (US$0.18), compared to basic and diluted net income per share of RMB2.41 in the third quarter of 2008. Adjusted net income (non-GAAP) for the third quarter decreased 94.37% year-over-year to RMB0.71 million (US$0.10 million). Adjusted net income excludes amortization of acquired software technology, amortization of intangibles, share-based compensation expenses and accretion on convertible notes.

Third quarter 2009 adjusted non-GAAP diluted earnings per share was RMB0.21 (US$0.03). Non-GAAP diluted earnings per share excludes amortization of acquired software technology, amortization of intangibles, share-based compensation expenses and accretion on convertible notes.

EBITDA (non-GAAP) for the third quarter was -RMB0.72 million (-US$0.10 million), compared with RMB6.18 million in the third quarter of 2008.

Balance Sheet and Cash Flow

In the third quarter, net cash loss from operating activities was RMB15.22 million (US$2.23 million), while net cash used in investing activities was RMB10.13 million (US$1.48 million).

As of September 30, 2009, cash and cash equivalents decreased 9.55% from June 30, 2009 to RMB35.46 million (US$5.19 million), mainly due to a decrease in cash inflow related to the economic slow down.

Total accounts receivable as of September 30, 2009 decreased 0.92% to RMB12.39 million (US$1.82 million) from RMB12.51 million as of June 30, 2009.

Inventories as of September 30, 2009 decreased 23.78% quarter-over-quarter to RMB8.51 million (US$1.25 million) due to the decrease in work-in process.

Business Outlook and Revision of 2009 Annual Guidance

While the operating environment remains challenging, we are beginning to see positive signs of a recovery in our Logistics, Supermarket and Department Store SBUs. As evidence, we closed a total of over 500 new contracts in our Supermarket and Department Store SBUs in the third quarter, and our total contracts in the third quarter showed significant growth year-over-year

As explained above, revenues from eFuture's Supermarket and Department Store SBUs were negatively impacted as a result of customers unexpectedly delaying new store openings in the second half of 2009 in response to the economic downturn. As these two SBUs accounted for over 43% of total revenue, results have fallen well below management's initial expectations. As a result, the Company is revising its guidance for the full year 2009. Management anticipates total revenues to be in the range of approximately US$17 million to US$18 million. Adjusted EBITDA (non-GAAP) is expected to be in the range of approximately breakeven to US$0.7 million. This forecast is a current and preliminary view and is subject to change.

Currency Convenience Translation

For the convenience of readers, certain RMB amounts in the third quarter 2009 financial results have been translated into US dollars at the rate of RMB6.8262 to US$1.00, the noon buying rate for US dollars in effect on September 30, 2009 for cable transfers of RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that any amounts were or could be transferred at such rates.

Third Quarter 2009 Results and Conference Call

Following the earnings announcement, eFuture's senior management will host a conference call on Tuesday, December 8, 2009 at 5:00 am (Pacific) / 8:00 am (Eastern) / 9:00 pm (China) to discuss its third quarter 2009 financial results and recent business activity. The conference call may be accessed by calling:

    United States toll free                  1-866-519-4004
    China (Landline)                         800-819-0121
    China (Mobile)                           400-620-8038
    United Kingdom toll free                 0808-234-6646
    Hong Kong toll free                      800-930-346
    Conference ID                            43021457

    Please dial-in 10 minutes before the call is scheduled to begin.

A replay of the conference call may be accessed by phone at the following numbers until 11:00 pm (Eastern), December 15, 2009:

    United States toll free                 1-866-214-5335
    China North                             10-800-7140386
    China South                             10-800-1400386
    United Kingdom toll free                0800-731-7846
    Hong Kong toll free                     800-901-596
    Conference ID                           43021457

Additionally, a live and archived webcast of the conference call will be available on the investor relations section of eFuture's website at

eFuture Information Technology Inc. (Nasdaq: EFUT) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain (from factory to consumer) market, especially in the retail and fast moving consumer goods industries. eFuture currently serves over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e-future.com.... .

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, 2009 financial outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward-looking statements. eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to second parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the Company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the Company's ability to control expenses and maintain profit margins; the Company's ability to hire, train and retain qualified managerial and other employees; the Company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the performance of third parties under contracts with the Company; the expected growth of the Chinese economy software market in retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of November 19, 2009, and the Company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For more information, please contact:

    Investor Contact:
     Troe Wen, Company Secretary
     eFuture Information Technology Inc.
     Tel:   +86-10-5293-7699
     Email: ir@e-future.com.cn

    Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: eFuture@Taylor-Rafferty.com

    Investor Relations (US):
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

    Media Contact:
     Jason Marshall
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

                       -- FINANCIAL TABLES TO FOLLOW --



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                  Chinese Yuan (Renminbi)    U.S. Dollars
                                 December 31, September 30,  September 30,
                                     2008         2009           2009
                                  (Unaudited)  (Unaudited)    (Unaudited)
    ASSETS
    Current assets
    Cash and cash equivalents      60,787,734   35,456,533     5,194,183
    Trade receivables, less
     allowance for doubtful
     accounts of RMB4,743,679
     and RMB5,108,221($748,326),
     respectively                  19,468,029   12,391,138     1,815,232
    Refundable value added tax      2,755,702    2,651,527       388,434
    Deposits                               --           --            --
    Advances to employees           3,205,953    4,612,444       675,697
    Advances to suppliers             198,752      422,139        61,841
    Other receivables               2,229,535    3,952,932       579,082
    Prepaid expenses                  735,083    1,636,601       239,753
    Inventory and work in process   2,879,250    8,508,900     1,246,506
    Total current assets           92,260,038   69,632,214    10,200,729

    Non-current assets
    Long-term investments             654,192      654,192        95,835
    Long term deferred expense             --       75,000        10,987
    Deferred loan costs             1,182,588      924,587       135,447
    Property and equipment, net
     of accumulated depreciation
     of RMB3,020,838  and
     RMB3,852,569($564,380),
     respectively                   3,605,458    4,047,329       592,911
    Intangible assets, net of
     accumulated amortization of
     RMB34,704,373 and
     RMB46,117,730($6,755,989),
     respectively                  49,875,082   47,258,138     6,923,052
    Goodwill                       91,284,735   91,284,735    13,372,702
    Total non-current assets      146,602,055  144,243,981    21,130,934

    Total assets                  238,862,093  213,876,195    31,331,663

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities
    Trade accounts payable          5,646,259    1,695,975       248,451
    Other payable                  11,097,702   14,333,809     2,099,823
    Accrued expenses                6,873,703    3,496,183       512,171
    Accrued interest                       --       92,154        13,500
    Taxes payable                   7,933,734    5,027,189       736,455
    Advances from customers        22,839,530   27,151,634     3,977,562
    Royalstone acquisition
     obligation, net of current
     portion                        6,416,970    6,420,451       940,560
    Health field acquisition
     obligation                       594,000      553,365        81,065
    Proadvancer System
     acquisition obligation        29,958,518   29,974,765     4,391,135
    BFuture acquisition
     obligation                       392,877      392,877        57,554
    Deferred tax, current portion   1,553,197      388,299        56,884
    Total current liabilities      93,306,490   89,526,700    13,115,160

    Long-term liabilities
    Royalstone acquisition
     obligation                            --           --            --
    3%-10% RMB6,826,200
     ($1,000,000) convertible
     note payable, net of
     RMB6,794,147 ($995,304)
     of unamortized discount           26,068       32,053         4,696
    Derivative liabilities          5,111,417    5,655,029       828,430
    Minority shareholder
     interests                        204,414      (16,750)       (2,454)
    Deferred tax                    5,458,232    4,272,007       625,825
    Total long-term liabilities    10,800,131    9,942,338     1,456,497

    Shareholders' equity
    Ordinary shares, $0.0756 U.S.
     dollars par value; 6,613,756
     shares authorized; 2,924,702
     shares and 3,362,241 shares
     outstanding, respectively      2,039,196    2,039,196       298,731
    Additional paid-in capital    173,054,651  175,348,931    25,687,634
    Statutory reserves              3,084,020    3,084,020       451,792
    Accumulated deficit           (43,422,395) (66,064,990)   (9,678,150)
    Total shareholders' equity    134,755,472  114,407,156    16,760,006

    Total liabilities and
     shareholders' equity         238,862,093  213,876,195    31,331,663



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                   CONDENSED CONSOLIDATED INCOME STATEMENTS

                                             Three Months Ended
                               September
                                30,2008   June 30,2009    September 30,2009
                                  RMB          RMB         RMB         US$
                              (Unaudited)  (Unaudited) (Unaudited) (Unaudited)
    Revenues
       Software sales          16,602,397   10,611,112  13,809,558  2,023,023
       Hardware sales           2,650,771           --     799,850    117,173
       Service fee income       8,103,952   11,594,726  10,603,170  1,553,305
    Total Revenues             27,357,120   22,205,838  25,212,578  3,693,501

    Cost of revenues
       Cost of software         5,312,887    3,526,283   4,379,759    641,610
       Cost of hardware         2,025,567           --     649,717     95,180
       Cost of service fee
        income                  2,698,429    4,937,353   6,449,959    944,883
       Amortization of acquired
        technology              3,336,837    3,018,653   3,063,315    448,758
       Amortization of software
        costs                     891,606      905,642   1,027,965    150,591
    Total Cost of Revenue      14,265,327   12,387,931  15,570,716  2,281,022

    Gross Profit               13,091,793    9,817,907   9,641,862  1,412,479

    Operating Expenses
       Research and development   223,792       92,179     427,195     62,582
       General and
        Administrative          8,069,198   10,032,444   7,173,665  1,050,902
       Selling and distribution
        expenses                4,274,793    9,443,587   7,914,027  1,159,361
    Total Operating Expenses   12,567,783   19,568,210  15,514,887  2,272,844

    Profit/(loss) from
     operations                   524,010   (9,750,303) (5,873,024)  (860,365)

    Interest income               353,665      162,491     153,454     22,480
    Interest expense              (32,793)    (174,914)   (176,753)   (25,893)
    Interest expenses -
     amortization of discount
     on notes payable                (570)        (204)       (958)      (140)
    Interest expenses -
     amortization of deferred
     loan costs                   (82,744)     (87,176)    (88,301)   (12,936)
    Income/(loss) on
     investments                 (130,681)          --          --         --
    Gain/(loss) on derivatives  9,005,331   (1,673,706)   (158,449)   (23,212)
    Loss on extinguishment of
     convertible notes                 --           --          --         --
    Foreign currency exchange
     gain                      (3,679,219)      12,059      31,006      4,542
    Profit/(loss) before tax    5,956,999  (11,511,752) (6,113,025)  (895,524)
    Income tax expense/
     (benefit)                         --      283,108   1,574,525    230,659
    Minority interest in
     profit/(loss) of
     consolidated subsidiary    1,602,385     (154,631)    375,795  55,052.00
    Net Income/(loss)           7,559,384  (11,383,275) (4,162,706)  (609,813)
    Other comprehensive
     income/(loss)
       Foreign currency
        translation
        adjustment                     --           --          --         --
    Comprehensive
     Income/(loss)              7,559,384  (11,383,275) (4,162,706)  (609,813)

    Earnings per ordinary share
       Basic                         2.41        (3.39)      (1.24)     (0.18)
       Diluted                       2.41        (3.39)      (1.24)     (0.18)



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                       NON-GAAP MEASURES OF PERFORMANCE

                              September
                               30,2008   June 30,2009    September 30,2009
                                 RMB          RMB         RMB         US$
                             (Unaudited)  (Unaudited) (Unaudited) (Unaudited)
    NON-GAAP OPERATING
     INCOME (LOSS) AND
     ADJUSTED EBITDA

    Operating income
     (loss) (GAAP Basis)        524,010   (9,750,303) (5,873,024)  (860,365)

    Adjustments for
     non-GAAP measures
     of performance:
       Add back amortization
        of acquired software
        technology            3,336,837    3,018,653   3,063,315    448,758
       Add back amortization
        of intangibles          891,606      905,642   1,027,965    150,591
       Add back share-based
        Compensation expenses   763,234      752,311     776,742    113,788
    Adjusted non-GAAP
     operating income         5,515,686   (5,073,697) (1,005,002)  (147,228)
       Add back depreciation    666,804      286,790     288,844     42,314

    Adjusted EBITDA
     (Earnings before
     interest, taxes,
     depreciation and
     amortization)            6,182,490   (4,786,907)   (716,158)  (104,913)

    NON-GAAP OPERATING
     INCOME (LOSS) AND
     ADJUSTED EBITDA,
     as a percentage of
     revenue

    Operating income
     (loss) (GAAP BASIS)             2%         -44%        -23%       -23%

    Adjustments for
     non-GAAP measures
     of performance:
       Amortization of
        acquired software
        technology                  12%          14%         12%        12%
       Amortization of
        intangibles                  3%           4%          4%         4%
       Share-based compensation
        expenses                     3%           3%          3%         3%
    Adjusted non-GAAP
     operating income               20%         -23%         -4%        -4%
       Depreciation                2.4%         1.3%        1.1%       1.1%

    Adjusted EBITDA
     (Earnings before
     interest, taxes,
     depreciation and
     amortization)                  23%         -22%         -3%        -3%

    NON-GAAP EARNINGS
     PER SHARE
    Net Income(Loss)          7,559,384  (11,383,275) (4,162,706)  (609,813)
       Amortization of
        acquired software
        technology            3,336,837    3,018,653   3,063,315    448,758
       Amortization of
        intangibles             891,606      905,642   1,027,965    150,591
       Accretion on
        convertible notes           570          204         958        140
       Share-based
        compensation
        expenses                763,234      752,311     776,742    113,788
    Adjusted Net income      12,551,631   (6,706,465)    706,274    103,464

    Adjusted non-GAAP
     diluted earnings
     per share                     4.00        (1.98)       0.21       0.03
    Shares used to
     compute non-GAAP
     diluted earnings
     per share                3,140,371    3,384,625   3,386,318  3,386,318



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                      Chinese Yuan (Renminbi)    U.S. Dollars
                                     December 31, September 30,  September 30,
                                         2008         2009           2009
                                     (Unaudited)  (Unaudited)     (Unaudited)
      Cash flows from operating
       activities:
      Net income (loss)              (4,478,112) (23,015,794)     (3,371,685)
      Adjustments to reconcile
       net income (loss) to net
       cash provided by (used
       in) operating activities:
         Depreciation                   891,183      720,875         105,604
         Amortization of intangible
          assets                     16,940,774   11,826,305       1,732,487
         Impairment of intangible
          assets                      2,143,290           --              --
         Amortization of discount
          on notes payable               33,212        7,810           1,144
         Amortization of deferred
          loan costs                    978,204      261,538          38,314
         Gain on derivatives        (33,122,465)     541,294          79,297
         Loss on extinguishment of
          convertible notes          22,529,233           --              --
         Investment (income)/loss     3,552,902           --              --
         Loss on disposition of
          property and equipment        385,995        2,200          322.00
         Provision for doubtful
          debt                        2,340,706     (656,452)        (96,167)
         Provision for loss in
          inventory and work in
          process                     1,449,542           --              --
         Compensation expense for
          options issued to
          employees                   3,109,903    2,294,279         336,099
         Deferred taxes                 481,774   (2,351,123)       (344,426)
         Foreign exchange loss       (2,222,996)          --              --
         Minority interest              204,414     (221,164)        (32,399)
      Change in assets and
       liabilities:
         Accounts receivable         (2,526,441)   7,733,343       1,132,891
         Refundable value added tax     935,333      104,175          15,261
         Deposits                       156,695           --              --
         Advances to employees          370,994   (1,644,189)       (240,864)
         Advances to suppliers          991,888     (223,387)        (32,725)
         Other receivables              136,565   (2,094,564)       (306,842)
         Prepaid expenses               305,014     (976,373)       (143,033)
         Inventories                  1,421,159   (5,460,834)       (799,982)
         Trade payables               1,230,861   (3,991,241)       (584,694)
         Other payables               7,269,063    4,611,114         675,502
         Accrued expenses             2,360,449   (3,376,218)       (494,597)
         Accrued interest              (278,420)      92,154          13,500
         Taxes payable               (1,084,826)  (3,719,675)       (544,912)
         Advances from customers      4,542,952    4,312,104         631,699
      Net cash provided by
       operating activities          31,048,845  (15,223,823)     (2,230,205)

      Cash flows from investing
       activities:
         Purchases of property and
          equipment                  (1,618,331)  (1,290,055)       (188,986)
         Payments for intangible
          assets                     (2,930,247)  (8,836,167)     (1,294,449)
         Long-term investments               --           --              --
         Acquisition of business    (28,278,247)          --              --
         Loan to Guarantor                   --           --              --
         Amounts due from a related
          party                              --           --              --
      Net cash used in investing
       activities                   (32,826,825) (10,126,223)     (1,483,435)

      Cash flows from financing
       activities:
        Issuance of ordinary
          shares for cash,  net of
         offering costs paid                 --           --              --
         Proceeds from exercise of
          warrants                    3,657,908           --              --
         Issuance of convertible
          notes                              --           --              --
         Payment of make-whole
          obligation                 (8,054,079)          --              --
         Repayment of short-term
          loans                              --           --              --
      Net cash provided by (used
       in) financing activities      (4,396,171)          --              --
      Effect of exchange rate
       changes on cash                 (265,463)      18,843           2,760
      Net increase (decrease) in
       cash                          (6,439,614) (25,331,201)     (3,710,879)
      Cash and cash equivalents
       at beginning of period        67,227,348   60,787,734       8,905,062
      Cash and cash equivalents
       at end of period              60,787,734   35,456,533       5,194,183
      Supplemental cash flow
       information
      Interest paid                   1,525,200   210,130.87       30,783.00




             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                   Sep 30,2009    Sep 30,2008    Sep 30,2008
                                    (Reported)     (Reported)     (Restated)
    ASSETS
    Current assets
    Cash and cash equivalents    RMB 35,456,533 RMB 32,654,311 RMB 32,654,311
    Trade receivables, less
     allowance for doubtful
     accounts                        12,391,138     21,649,789     21,649,789
    Refundable value added tax        2,651,527      2,076,806      2,076,806
    Deposits                                 --        209,660        209,660
    Advances to employees             4,612,444      3,325,265      3,325,265
    Advances to suppliers               422,139      1,272,190      1,272,190
    Notes receivable - related
     party                                   --             --             --
    Other receivables                 3,952,932      2,957,441      2,957,441
    Prepaid expenses                  1,636,601      1,290,072      1,290,072
    Inventory                         8,508,900     28,583,119     28,583,119
    Total current assets             69,632,214     94,018,652     94,018,652

    Non-current assets
    Long-term investments               654,192        636,438        636,438
    Long term deferred expense           75,000             --             --
    Deferred loan costs                 924,587        845,952      1,283,729
    Deferred assets                          --        170,583        170,583
    Property and equipment, net of
     accumulated depreciation         4,047,329      3,816,169      3,816,169
    Intangible assets, net of
     accumulated amortization        47,258,138     55,721,160     55,721,160
    Goodwill                         91,284,735     62,091,498     62,091,498
    Total non-current assets        144,243,981    123,281,801    123,719,578

    Total assets                 RMB213,876,195 RMB217,300,453 RMB217,738,230

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities
    Trade accounts payable       RMB  1,695,975 RMB  7,641,533 RMB  7,641,533
    Other payable                    14,333,809      8,314,220      8,314,220
    Accrued expenses                  3,496,183      5,127,705      5,127,705
    Accrued interest                     92,154        129,180     (7,959,651)
    Taxes payable                     5,027,189      3,784,198      3,784,198
    Deferred Revenues                        --      3,824,101      3,824,101
    Deferred Tax                             --      4,688,447      4,688,447
    Advances from customers          27,151,634     26,014,183     26,014,183
    Royalstone acquisition
     obligation, current portion      6,420,451      2,015,456      2,015,456
    Health Field acquisition
     obligation                         553,365      1,027,791      1,027,791
    Proadvancer System acquisition
     obligation                      29,974,765     21,853,524     21,853,524
    BFuture acquisition obligation      392,877             --             --
    Make-whole obligation, current
     portion                                 --        366,453             --
    Convertible note payable,
     current portion                         --             --             --
    Deferred tax, current portion       388,299             --             --
    Total current liabilities        89,526,700     84,786,790     76,331,505

    Long-term liabilities
    Royalstone acquisition
     obligation, net of current
     portion                                 --      1,424,728      1,424,728
    Make-whole obligation, net of
     current portion                         --      9,290,082             --
    3% - 10% convertible note
     payable, net of unamortized
     discount                            32,053      6,770,666         27,686
    Derivative liabilities            5,655,029             --    (22,427,355)
    Deferred tax                        (16,750)            --             --
    Minority shareholder interests    4,272,007     (5,098,557)    (5,098,557)
    Total long-term liabilities       9,942,338     12,386,919    (26,073,499)

    Shareholders' equity
    Ordinary shares, $0.0756 U.S.
     dollars par value; 6,613,756
     shares authorized;3,362,241
     shares outstanding               2,039,196      1,957,580      1,957,580
    Additional paid-in capital      175,348,931    198,574,086    214,660,407
    Statutory reserves                3,084,020      3,084,020      3,084,020
    Accumulated deficit             (66,064,990)   (83,488,941)   (52,221,783)
    Total shareholders' equity      114,407,156    120,126,745    167,480,223
    Total liabilities and
     shareholders' equity        RMB213,876,195 RMB217,300,453 RMB217,738,230



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                   CONDENSED CONSOLIDATED INCOME STATEMENTS

                                  Sep 30,2009     Sep 30,2008     Sep 30,2008
                                   (Reported)      (Reported)      (Restated)
    Revenues
    Software sales              RMB 13,809,558  RMB 16,602,397  RMB 16,602,397
    Hardware sales                     799,850       2,650,771       2,650,771
    Service fee income              10,603,170       8,103,952       8,103,952
    Total Revenues                  25,212,578      27,357,120      27,357,120

    Cost of Revenue
    Cost of software                 4,379,759       5,312,887       5,312,887
    Cost of hardware                   649,717       2,025,567       2,025,567
    Cost of service fee income       6,449,959       2,698,429       2,698,429
    Amortization of acquired
     technology                      3,063,315       3,336,837       3,336,837
    Amortization of software costs   1,027,965         891,606         891,606
    Total Cost of Revenue           15,570,716      14,265,327      14,265,327

    Gross Profit                     9,641,862      13,091,793      13,091,793

    Operating Expenses
    Research and development           427,195         223,792         223,792
    General and administrative       7,173,665       8,061,899       8,069,198
    Selling and distribution
     expenses                        7,914,027       4,274,793       4,274,793
    Total Operating Expenses        15,514,887      12,560,484      12,567,783

    Profit from operations          (5,873,024)        531,309         524,010

    Interest income                    153,454         353,665         353,665
    Interest expense                  (176,753)     (8,114,896)        (32,793)
    Interest expense- amortization
     of discount on notes payable         (958)    (18,385,813)           (570)
    Interest expense- amortization
     of deferred loan costs            (88,301)     (3,415,298)        (82,744)
    Income on investments                    --       (130,681)       (130,681)
    Gain on derivative liabilities    (158,449)             --       9,005,331
    Loss on extinguishment of
     convertible notes                      --              --              --
    Foreign currency exchange
     gain/(loss)                        31,006        (488,662)     (3,679,219)
    Outside business receives               --             528              --
    Outside business disburses              --          (7,827)             --
    Loss before taxation            (6,113,025)    (29,657,675)      5,956,999

    Income tax                       1,574,525              --              --
    Minority interest in loss of
     consolidated subsidiary           375,795       1,602,385       1,602,385

    Net loss                    RMB (4,162,706) RMB(28,055,290)  RMB 7,559,384

As noted in previous press releases, the Company reviewed its accounting for certain matters in the First Quarter and has determined that a restatement of unaudited financial information for the First Quarter is appropriate. The Company previously released unaudited financial information for the First Quarter in a press release dated June 9, 2009 (the "Press Release"). Investors should no longer rely upon the financial information contained in the Press Release. Investors should rely solely upon the unaudited financial information for the First Quarter contained herein.

    Second Quarter Financial Highlights:

    RMB                   Unaudited                            Unaudited
                          Quarter Ended                        Quarter Ended
                          June 30, 2008                        June 30, 2009
                          Reported             Adjusted        Reported
    Profit and Loss
     (selected)
    Total Revenue             24,160,436      24,160,436          22,205,838
    Total Cost of             10,368,762      10,368,762          12,387,931
    Revenue
    Gross profit              13,791,673      13,791,673           9,817,907
    Total Expenses            12,560,484      12,698,084          19,568,210
    Income (loss)
     from operations           1,231,189       1,093,589          (9,750,303)
    Net Income                 2,814,162         969,364         (11,383,275)
     (loss)
     Comprehensive                     0               0                   0
    Income/Loss
    Net Income per
     share
     - Basic                        0.94            0.32               (3.39)
     - Diluted                      0.94            0.32               (3.39)


    -- Total revenues decreased 8.09% year-over-year to RMB22.21 million
       (US$3.25 million).
       - Revenue from software license sales increased 21.81%
         year-over-year to RMB10.61 million (US$1.55 million).
       - Revenue from hardware sales was nil, compared to RMB2.92
         million in the second quarter of 2008.
       - Service fee income decreased 7.49% year-over-year to
         RMB11.59 million (US$1.70 million).
    -- Gross profit decreased 28.81% year-over-year to RMB9.82 million
       (US$1.44 million).  Gross margin decreased to 44.21% from 57.08%
       in the second quarter of 2008.
    -- Operating loss was RMB9.75 million (US$1.43 million), compared
       to net income of RMB1.09 million in the second quarter of 2008.
    -- Net loss was RMB11.38 million (US$1.67 million), compared to
       net income of RMB0.97 million in the second quarter of 2008.
    -- Diluted net loss per share was RMB3.39 (US$0.50), as compared
       to net income per share of RMB0.32 for the second quarter of 2008.
    -- Operating cash flow was -RMB14.42 million (-US$2.11 million).
    -- Adjusted net loss (non-GAAP) was RMB6.71 million (US$0.98 million),
       compared to an adjusted net income of RMB4.52 million in the second
       quarter of 2008.
    -- Non-GAAP adjusted diluted loss per share was RMB1.98 (US$0.29).

Mr. Adam Yan, Chairman and Chief Executive Officer of eFuture, said,

"Our results for the second quarter reflect the challenges we have faced from the market slow-down, especially in our logistics and department store and shopping mall business. However, these challenges were mitigated somewhat by healthy software license revenues driven by a rebound in demand in our Supermarket, Specialty Store and Key Accounts SBUs. We have continued to execute on our strategic, business and operational imperatives, which are to solidify our core enterprise software business, grow value-added services revenues, expand the scope and depth of our eService offering, including our B2B service and SaaS service for SCM and B2C eShopping platform and invest in building our presence in the second and third tier cities. We believe our business remains fundamentally sound, and we continue to be well positioned to capitalize on the growth opportunities in the software market for retail and consumer goods industries."

Second Quarter Unaudited Financial Results

Revenue

Revenue for the Second Quarter decreased 8.09% to RMB22.21 million (US$3.25 million) from RMB24.16 million in the second quarter 2008 mainly due to a slow-down in hardware sales.

Software license revenues increased by 21.08% year-over-year to RMB10.6 million, primarily attributable to the recovery from Supermarket, Specialty Store and Key Account SBUs.

Service fee income decreased by 7.49% year-over-year, and as a percentage of revenue continued to increase and accounted for 55.21% of total revenue in the Second Quarter, as compared to 51.87% in the same period last year.

    Revenue Breakdown

                               2008Q2                    2009Q2
                               Restated
                               RMB '000       RMB '000   USD '000      Y-o-Y
                                                                      Change
    Software license
     sales                       8,712          10,611    1,554        21.80%
    Hardware sales               2,916              --       --           --
    Service fee income          12,533          11,595    1,698       (7.48%)
    Total                       24,160          22,206    3,251       (8.09%)

Cost of Revenues

The cost of revenue for the Second Quarter increased 19.47% to RMB12.39 million (US$1.81 million) from RMB10.37 million in the second quarter 2008.

    Cost of Revenues Breakdown

                                 2008Q2                2009Q2
                                 Restated
                                 RMB '000    RMB         USD        Y-o-Y
                                            '000        '000       Change
    Cost of software license
     sales                         2,040     3,526       516       72.84 %
    Cost of hardware sales         2,549        --        --          --
    Cost of service see            2,983     4,937       723       65.49 %
    Amortization of acquired
     technology                    1,905     3,019       442       58.49 %
    Amortization of software
     costs                           892       906       133        1.57 %
    Total                         10,369    12,388     1,814       19.47 %

The increase in cost of revenue was partially attributable to a one-time recognized cost from a few unprofitable projects and the amortization of acquired technology from Crownhead and Proadvancer.

Gross Profit

Second Quarter gross profit decreased 28.81% year-over-year to RMB9.82 million (US$1.44 million), from RMB13.79 million in the second quarter of 2008. Consolidated gross margin for the Second Quarter was 44.21% compared with 57.08% in the second quarter of 2008.

Operating Expenses

Research and development expenses for the Second Quarter decreased 58.81% year-over-year to RMB92,179 (US$13,496) compared with RMB223,792 in the second quarter of 2008. The year-over-year decrease was a result of cost reallocation to cost of revenue and to intangibles to be capitalised in future.

General and administrative expenses for the Second Quarter increased 22.35% year-over-year to RMB10.03 million (US$1.47 million), or 45.18% of total revenues, compared with RMB8.20 million, or 33.94% of total revenue in the second quarter of 2008 and RMB7.88 million, or 56.97% of total revenue in the First Quarter. The increase in general and administrative expenses as a percentage of revenues was primarily due to the RMB2.7 million bad debt provision from Wangku, our increased investment in the business expansion of bFuture.

Selling and distribution expenses for the Second Quarter increased 120.91% year-over-year to RMB9.44 million (US$1.38 million), or 42.53% of total revenues, compared with RMB4.27 million, or 17.69% of total revenue in second quarter 2008 and RMB5.58 million, or 40.33% of total revenue in the First Quarter. The significant increase was due to our continued investment in building our regional sales/marketing teams to enhance our presence in tier 2 and 3 cities.

Operating Income/Loss

Operating loss in the Second Quarter was RMB9.75 million (US$1.43 million), compared with an operating income of RMB1.09 million in the second quarter of 2008.

Net Income/Loss and EBITDA

As a result of the foregoing, Second Quarter net loss was RMB11.38 million (US$1.67 million) compared with a net income of RMB0.97 million in the second quarter of 2008.

Basic and diluted losses per share in the Second Quarter were both RMB3.39 (US$0.50), compared to basic and diluted net income per share of RMB0.32 in the second quarter of 2008. Adjusted net loss (non-GAAP) for the Second Quarter was RMB6.71 million (US$0.98 million), compared to an adjusted net income of RMB4.52 million in the second quarter of 2008.

Second quarter 2009 adjusted non-GAAP diluted loss per share was RMB1.98 (US$0.29).

EBITDA (non-GAAP) for the Second Quarter was -RMB4.79 million (-US$0.70 million), compared with RMB4.73 million in the second quarter of 2008.

Balance Sheet and Cash Flow

In the Second Quarter, net cash loss from operating activities was RMB14.42 million (US$2.11 million), while net cash used in investing activities was RMB7.20 million (US$1.05 million).

As of June 30, 2009, cash and cash equivalents decreased 7.82% from March 31, 2009 to RMB39.20 million (US$5.74 million), mainly due to normal seasonal patterns in which cash flow decreases in the first half while peaking in the second half of the fiscal year.

Total accounts receivable as of June 30, 2009 decreased 41.38% to RMB12.51million (US$1.83 million) from RMB21.33 million as of March 31, 2009. This decrease was mainly attributable to improvement in collection and Wangku's increase in write off.

Inventories as of June 30, 2009 increased 11.37% quarter-over-quarter to RMB7.65 million (US$1.12 million) due to the increase in work-in process.

    Restatement of First Quarter 2009 Unaudited Financial Results

    RMB                      Unaudited                    Unaudited
                           Quarter Ended                Quarter Ended
                           March 31, 2008               March 31, 2009
                       Reported       Adjusted      Reported      Restated
    Profit and Loss
     (selected)
    Total Revenue      14,014,472     14,014,472    13,977,378    13,824,292
    Total Cost of       9,300,139      9,300,139     8,992,326     9,315,216
    Revenue
    Gross profit        4,714,333      4,714,333     4,985,052     4,509,077
    Total Expenses     11,797,143     11,797,143    11,726,713    13,544,747
    Income (loss)
     from operations   (7,082,810)    (7,082,810)   (6,741,662)   (9,035,671)
    Net Income
     (loss)            (9,225,286)    (6,340,016)   (4,968,403)   (7,469,813)
    Other
     Comprehensive
     Income/Loss                0              0             0             0
    Net income
     (loss) per share
    Basic                   (3.14)         (2.16)        (1.96)        (2.22)
    Diluted                 (3.14)         (2.16)        (1.96)        (2.22)

The effects of the restatement on some of the key items of our unaudited results of the First Quarter are as follows:

    -- Total revenue slightly decreased by 1.10% to RMB13.82 million
    -- Total cost of revenue has increased by 3.59% to RMB9.32 million
    -- Gross profit decreased by 9.55% to RMB4.51 million
    -- Total expenses have increased by 15.50% to RMB13.54 million
    -- Income loss has increased by 34.03% to RMB9.04 million
    -- Recognized gains on derivatives of RMB1.30 million
    -- Foreign exchange loss reduced by 93.69% to RMB0.06 million
    -- Net Income loss has increased by 13.07% to RMB7.47 million
    -- Minority shareholder income was restated from RMB1.97 million
       to RMB0 million
    -- Net loss per common share, basic and diluted was restated from
       RMB1.96 to RMB2.22
    -- Non-GAAP adjusted diluted loss per share was RMB0.82 (US$0.12).
    -- Operating cash flow was restated from -RMB15.10 million to
       -RMB15.30 million

The comparison of the restated unaudited results of the First Quarter against similarly calculated financial information for the results of the first quarter of 2008, is as follows :

    -- Total revenues decreased slightly more to 1.36% year-over-year
       to RMB13.82 million (US$2.02 million).
       - Revenue from software license sales decreased 34.58%
          year-over-year to RMB4.95 million (US$0.72 million).
       - Revenue from hardware sales decreased 0.99% year-over-year
          to RMB1.40 million (US$0.20 million).
       - Service fee income was restated from an increase of 51.3% to
          48.40% year-over-year to RMB7.48 million (US$1.09 million).
    -- Gross profit decreased 4.35% year-over-year to RMB4.51 million
       (US$0.66 million).  Gross margin decreased to 32.62% from 33.64%
       in the first quarter of 2008.
    -- Operating loss was RMB9.04 million (US$1.32 million), compared
       to an operating loss of RMB7.08 million in the first quarter of 2008.
    -- Net loss increased to RMB7.47 million (US$1.09 million), compared
       to a net loss of RMB6.34 million in the first quarter of 2008.
    -- Diluted net loss per share was RMB2.22 (US$0.33), as compared to
       net loss per share of RMB2.16 for the first quarter of 2008.
    -- Adjusted net loss (non-GAAP) was RMB2.80 million (US$0.41 million),
       compared to an adjusted net loss of RMB0.77 million in the first
       quarter of 2008.

Miss Yu Ping, Chief Financial Officer of eFuture, said, " I am very pleased to report that the accounting adjustment process has been completed with the restatement of first quarter 2009 financial results. The intent is to ensure adequate reserve of social security benefits for our employees and to enhance the accurate recognition of our revenue and cost base that will enable us to better reflect our expanding business and operational performance. We believe we are emerging from this process in a more sound position than when we started and are better positioned to ensure accurate and consistent financial reporting moving forward."

Notes on Restatement of First Quarter Unaudited Financial Results

The Company identified several errors in its consolidated financial statements for the First Quarter. As a result, certain amounts in the consolidated financial statements were corrected from the amounts previously reported.

The nature of these errors included a net understatement of revenue on certain software maintenance contracts, failure to apply step acquisition accounting, improper timing of recognition for contingent acquisition payments, improper calculation of deferred tax liabilities, understatement of payroll accruals, and improper recording of convertible notes.

The convertible notes, issued on March 13, 2007, contained a beneficial conversion feature and a make-whole provision that were originally recorded at their intrinsic values according to EITF 00-27 "Application of Issue No. 98-5 to Certain Convertible Instruments." The Series A Warrants, Series B Warrants and Placement Agent Warrants issued in connection with these notes were recorded as equity instruments at their grant date fair value.

It was subsequently determined that the make-whole provision, beneficial conversion feature, and Series A and B warrants contained provisions that triggered derivative treatment under SFAS 133 "Accounting for Derivatives." Adjustments were subsequently made to record the make-whole provision, beneficial conversion feature, and optional early redemption right as a bundled derivative liability. The Series A Warrants, Series B Warrants and Placement Agent Warrants were considered separable instruments and recorded as a separate derivative liability. Changes in the fair values of these derivatives are recorded as gains and losses on derivatives in the consolidated statement of operations.

Currency Convenience Translation

For the convenience of readers, certain RMB amounts in the restatement of the First Quarter financial results have been translated into US dollars at the rate of RMB6.8329 to US$1.00, the noon buying rate for US dollars in effect on March 31, 2009 for cable transfers of RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.

And certain RMB amounts in the Second Quarter financial results have been translated into US dollars at the rate of RMB6.8302 to US$1.00, the noon buying rate for US dollars in effect on June 30, 2009 for cable transfers of RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.

Third Quarter 2009 Results and Conference Call

eFuture expects to release unaudited financial results for the third fiscal quarter of 2009 after the close of U.S. markets on Monday, December 7, 2009.

The earnings press release will be available on the investor relations page of its website at

    United States toll free                  1-866-519-4004
    China (Landline)                         800-819-0121
    China (Mobile)                           400-620-8038
    United Kingdom toll free                 0808-234-6646
    Hong Kong toll free                      800-930-346
    Conference ID                            43021457

    Please dial-in 10 minutes before the call is scheduled to begin.

A replay of the conference call may be accessed by phone at the following numbers until 11:00 pm (Eastern), December 15, 2009:

    United States toll free                 1-866-214-5335
    China North                             10-800-7140386
    China South                             10-800-1400386
    United Kingdom toll free                0800-731-7846
    Hong Kong toll free                     800-901-596
    Conference ID                           43021457

Additionally, a live and archived webcast of the conference call will be available on the investor relations section of eFuture's website at

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

eFuture believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding expenses that may not be indicative of its operating performance from a cash perspective or be indicative of its operating performance. eFuture believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to eFuture's historical performance and liquidity. eFuture computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. The accompanying paragraphs have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

eFuture's management also believes that EBITDA, defined as earnings before interest, income tax expense, depreciation and amortization is a useful financial metric to assess its operating and financial performance before the impact of investing and financing transactions and income taxes. In addition, eFuture's management believes that EBITDA is widely used by other companies in the software industry and may be used by investors as a measure of its financial performance. Given the significant investments that eFuture has made in property, equipment, depreciation and amortization expense comprises a meaningful portion of the Company's cost structure. eFuture's management believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures. The presentation of EBITDA should not be construed as an indication that the Company's future results will be unaffected by other charges and gains eFuture considers to be outside the ordinary course of its business.

The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets, income tax expense, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Further, share-based compensation expenses have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of eFuture's financial results. The term EBITDA or adjusted EBITDA is not defined under U.S. GAAP, and EBITDA or adjusted EBITDA is not a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing eFuture's operating and financial performance, you should not consider this data in isolation or as a substitute for its net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company's EBITDA and adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as eFuture does.

Statement Regarding Unaudited Financial Information

The unaudited financial information set forth above is subject to adjustments that may be identified when audit work is performed on the Company's year-end financial statements, which could result in significant differences from this unaudited financial information.

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (NASDAQ: EFUT - News) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain (from factory to consumer) market, especially in the retail and fast moving consumer goods industries. eFuture currently serves over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e-future.com.... .

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, 2009 financial outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward-looking statements. eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to second parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the Company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the Company's ability to control expenses and maintain profit margins; the Company's ability to hire, train and retain qualified managerial and other employees; the Company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the performance of third parties under contracts with the Company; the expected growth of the Chinese economy software market in retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of November 19, 2009, and the Company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For more information, please contact:

    Investor Contact:
     Troe Wen, Company Secretary
     eFuture Information Technology Inc.
     Tel:   +86-10-5293-7699
     Email: ir@e-future.com.cn

    Investor Relations (US):
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

    Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: eFuture@Taylor-Rafferty.com

    Media Contact:
     Jason Marshall
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com



                EFUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                              March        March       March        March
                            31, 2009     31, 2009     31, 2008     31, 2008
                           (Reported)   (Restated)   (Reported)   (Restated)
    ASSETS
    Current assets
    Cash and cash                  RMB         RMB          RMB          RMB
     equivalents            42,460,982  42,524,982   59,283,677   59,283,677
    Trade receivables,
     less allowance for
     doubtful accounts      23,184,359   21,333,449   13,845,503   13,845,503
    Refundable value added
     tax                     1,677,975    1,578,129    2,351,243    2,351,243
    Deposits                        --           --      209,660      209,660
    Advances to employees    3,957,154    4,778,897    2,815,950    2,815,950
    Advances to suppliers    1,186,250    1,395,298      657,724      657,724
    Notes receivable -
     related party                  --           --           --           --
    Other receivables        1,396,544    3,673,343    5,681,883    5,681,883
    Prepaid expenses           993,138      455,515      880,875      880,875
    Inventory               14,093,665    6,869,625   13,771,667   13,771,667
    Total current assets    88,950,066   82,609,237   99,498,181   99,498,181

    Non-current assets
    Long-term investments      654,192      654,192    4,901,912    4,901,912
    Long term deferred
     expense                        --      285,000           --           --
    Deferred loan costs        673,888    1,097,696    4,539,826    7,252,043
    Deferred assets          6,552,316           --      171,583      171,583
    Property and
     equipment, net of
     accumulated
     depreciation            3,155,857    3,509,836    1,969,249    1,969,249
    Intangible assets, net
     of accumulated
     amortization           57,915,045   48,988,255   42,288,011   42,288,011
    Goodwill                69,595,844   91,284,735   46,814,929   46,814,929
    Total non-current
     assets                138,547,142  145,819,714  100,685,509  103,397,726

    Total assets                   RMB          RMB          RMB          RMB
                           227,497,208  228,428,951  200,183,690  202,895,907

    LIABILITIES AND
     SHAREHOLDERS' EQUITY
    Current liabilities
    Trade accounts payable         RMB          RMB          RMB          RMB
                             4,667,102    2,290,929    4,052,516    4,052,516
    Other payable            3,454,587   12,784,897    2,209,216    2,209,216
    Accrued expenses         3,893,034    4,708,929    3,566,471    3,566,471
    Accrued interest                --      (27,332)      76,619       69,872
    Taxes payable            6,000,035    5,782,023    5,101,258    5,101,258
    Deferred Revenues        7,228,517           --           --           --
    Deferred Tax             4,698,487           --    4,826,454    4,826,454
    Advances from
     customers              23,014,933   26,400,130   15,564,504   15,564,504
    Royalstone acquisition
     obligation, current
     portion                 6,415,374    6,426,752   15,860,198   15,860,198
    Health Field
     acquisition
     obligation                552,855      553,908    3,175,318    3,175,318
    Proadvancer System
     acquisition
     obligation             14,555,799   30,004,186           --           --
    BFuture acquisition
     obligation                     --      392,877           --           --
    Make-whole obligation,
     current portion                --           --      707,312           --
    Convertible note
     payable, current
     portion                   322,397           --    2,785,890           --
    Deferred tax, current
     portion                        --    1,164,898           --           --
    Total current
     liabilities            74,803,120   90,482,197   57,925,757   54,425,808

    Long-term liabilities
    Royalstone acquisition
     obligation, net of
     current portion                --           --    6,093,683    6,093,683
    Make-whole obligation,
     net of current
     portion                   719,094           --    9,290,082           --
    3% - 10% convertible
     note payable, net of
     unamortized discount      674,517       31,073    6,770,666      135,076
    Derivative liabilities          --    3,828,952           --   (3,776,075)
    Deferred tax                    --    5,458,232           --           --
    Minority shareholder
     interests               1,972,733           --     (375,070)    (375,070)
    Total long-term
     liabilities             3,366,345    9,318,257   21,779,360    2,077,613

    Shareholders' equity
    Ordinary shares,
     $0.0756 U.S. dollars
     par value; 6,613,756
     shares
     authorized;3,362,241
     shares outstanding      2,038,631    2,039,196    1,839,898    1,839,898

    Additional paid-in
     capital               224,849,534  173,819,877  169,131,602  197,548,234
    Statutory reserves       3,084,020    3,084,020    3,084,020    3,084,020
    Accumulated deficit    (80,644,442) (50,314,596) (53,576,948) (56,079,667)
    Total shareholders'
     equity                149,327,743  128,628,497  120,478,573  146,392,486
    Total liabilities and          RMB          RMB          RMB          RMB
    shareholders' equity   227,497,208  228,428,951  200,183,690  202,895,907





                EFUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                     CONDENSED CONSOLIDATED INCOME STATEMENTS


                                 March     March 31,     March     March 31,
                                31, 2009      2009      31, 2008      2008
                               (Reported)  (Restated)  (Reported)  (Restated)
    Revenues
    Software sales                    RMB         RMB        RMB          RMB
                                4,956,292   4,949,335   7,565,110   7,565,110
    Hardware sales              1,395,170   1,395,170   1,409,113   1,409,113
    Service fee income          7,625,916   7,479,788   5,040,249   5,040,249
    Total Revenues             13,977,378  13,824,292  14,014,472  14,014,472

    Cost of Revenue
    Cost of software            1,298,681   1,092,129   1,845,125   1,845,125
    Cost of hardware            1,367,984   1,370,114   1,204,786   1,204,786
    Cost of service fee income  2,311,579   2,952,121   1,493,129   1,493,129
    Amortization of acquired
     technology                 3,110,375   2,996,500   3,860,243   3,860,243
    Amortization of software
     costs                        903,707     904,352     896,856     896,856
    Total Cost of Revenue       8,992,326   9,315,216   9,300,139   9,300,139

    Gross Profit                4,985,052   4,509,077   4,714,333   4,714,333

    Operating Expenses
    Research and development      242,261      93,566     167,288     167,288
    General and administrative  5,742,794   7,876,101   7,870,673   7,870,673
    Selling and distribution
     expenses                   5,741,659   5,575,080   3,759,182   3,759,182
    Total Operating Expenses   11,726,713  13,544,747  11,797,143  11,797,143

    Profit from operations     (6,741,662) (9,035,671) (7,082,810) (7,082,810)

    Interest income               180,273     180,273     112,611     112,611
    Interest expense             (110,484)   (145,097)   (314,520)   (307,773)
    Interest expense-
     amortization of discount
     on notes payable            (199,648)     (6,648)   (488,504)    (29,348)
    Interest expense-
     amortization of deferred
     loan costs                   (55,387)    (86,062)   (242,378)   (403,212)
    Income on investments              --          --    (558,389)   (558,389)
    Gain on derivative
     liabilities                       --   1,290,861          --   3,776,075
    Loss on extinguishment of
     convertible notes                 --          --          --          --
    Foreign currency exchange
     gain/(loss)                 (883,409)    (55,769)   (805,787) (2,001,661)
    Outside business receives       6,320          --          --          --
    Outside business disburses         --          --          --          --
    Loss before taxation       (7,803,997) (7,858,113) (9,379,777) (6,494,507)

    Income tax                         --     388,299          --          --
    Minority interest in loss
     of consolidated
     subsidiary                 1,197,422          --     154,491     154,491

    Net loss                          RMB         RMB         RMB         RMB
                               (6,606,575) (7,469,813) (9,225,286) (6,340,016)





                EFUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                           June          June         June
                                         30, 2009      30, 2008     30, 2008
                                        (Reported)    (Reported)   (Restated)

    ASSETS
    Current assets
    Cash and cash equivalents                   RMB          RMB          RMB
                                         39,198,012   58,822,685   58,822,685
    Trade receivables, less allowance
     for doubtful accounts               12,506,545   22,261,041   22,261,041
    Refundable value added tax            2,242,320    2,564,891    2,564,891
    Deposits                                     --      209,660      209,660
    Advances to employees                 4,114,868    4,288,058    4,288,058
    Advances to suppliers                 1,082,244      817,830      817,830
    Notes receivable - related party             --           --           --
    Other receivables                     3,896,064    4,034,326    4,034,326
    Prepaid expenses                      2,147,132    1,098,565    1,098,565
    Inventory                             7,650,692   18,729,440   18,729,440
    Total current assets                 72,837,877  112,826,496  112,826,496

    Non-current assets
    Long-term investments                   654,192      767,119      767,119
    Long term deferred expense              817,382           --           --
    Deferred loan costs                   1,011,697    4,261,251    1,367,605
    Deferred assets                              --      171,083      171,083
    Property and equipment, net of
     accumulated depreciation             4,028,150    3,847,802    3,847,802
    Intangible assets, net of
     accumulated amortization            48,052,877   43,540,399   43,540,399
    Goodwill                             91,284,735   46,357,407   46,357,407
    Total non-current assets            145,849,033   98,945,061   96,051,415

    Total assets                                RMB          RMB          RMB
                                        218,686,910  211,771,556  208,877,910

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities
    Trade accounts payable                      RMB          RMB          RMB
                                          2,601,091    4,433,913    4,433,913
    Other payable                        13,724,591    8,833,770    8,833,770
    Accrued expenses                      5,520,983    3,348,548    3,348,548
    Accrued interest                        (27,321)      74,874       68,145
    Taxes payable                         5,965,735    4,817,410    4,817,410
    Deferred Revenues                            --    3,206,685    3,206,685
    Deferred Tax                                 --    4,716,502    4,716,502
    Advances from customers              23,617,532   20,819,237   20,819,237
    Royalstone acquisition obligation,
     current portion                      6,424,213   15,360,066   15,360,066
    Health Field acquisition obligation     553,689    3,102,981    3,102,981
    Proadvancer System acquisition
     obligation                          29,992,330           --           --
    BFuture acquisition obligation          392,877           --           --
    Make-whole obligation, current
     portion                                     --      479,561           --
    Convertible note payable, current
     portion                                     --    2,890,708           --
    Deferred tax, current portion           776,599           --           --
    Total current liabilities            89,542,319   72,084,256   68,707,259

    Long-term liabilities
    Royalstone acquisition obligation,
     net of current portion                      --    6,093,683    6,093,683
    Make-whole obligation, net of
     current portion                             --    9,290,082           --
    3% - 10% convertible note payable,
     net of unamortized discount             31,238    6,770,666       27,134
    Derivative liabilities                5,502,956           --   (7,552,150)
    Deferred tax                          5,458,232           --           --
    Minority shareholder interests          359,045   (3,496,172)  (3,496,172)
    Total long-term liabilities          11,351,471   18,658,259   (4,927,505)

    Shareholders' equity
    Ordinary shares, $0.0756 U.S.
     dollars par value; 6,613,756
     shares authorized;3,362,241 shares
     outstanding                          2,039,196    1,849,061    1,849,061

    Additional paid-in capital          174,572,189  170,675,900  199,092,532
    Statutory reserves                    3,084,020    3,084,020    3,084,020
    Accumulated deficit                 (61,902,285) (54,579,940) (58,927,456)
    Total shareholders' equity          117,793,120  121,029,041  145,098,157
    Total liabilities and shareholders'
     equity                                     RMB          RMB          RMB
                                        218,686,910  211,771,556  208,877,910




                EFUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                     CONDENSED CONSOLIDATED INCOME STATEMENTS

                                                       June 30,
                                        June 30, 2009    2008    June 30, 2008
                                         (Reported)   (Reported)  (Restated)


    Revenues
    Software sales                               RMB         RMB          RMB
                                          10,611,112   8,711,537    8,711,537
    Hardware sales                                --   2,915,871    2,915,871
    Service fee income                    11,594,726  12,533,027   12,533,027
    Total Revenues                        22,205,838  24,160,436   24,160,436

    Cost of Revenue
    Cost of software                       3,526,283   2,039,796    2,039,796
    Cost of hardware                              --   2,549,247    2,549,247
    Cost of service fee income             4,937,353   2,983,426    2,983,426
    Amortization of acquired technology    3,018,653   1,904,687    1,904,687
    Amortization of software costs           905,642     891,606      891,606
    Total Cost of Revenue                 12,387,931  10,368,762   10,368,762

    Gross Profit                           9,817,907  13,791,673   13,791,673

    Operating Expenses
    Research and development                  92,179     223,792      223,792
    General and administrative            10,032,444   8,061,899    8,199,499
    Selling and distribution expenses      9,443,587   4,274,793    4,274,793
    Total Operating Expenses              19,568,210  12,560,484   12,698,084

    Profit from operations                (9,750,303)  1,231,189    1,093,589

    Interest income                          162,491     873,560      873,560
    Interest expense                        (174,914)   (504,649)    (504,668)
    Interest expense- amortization of
     discount on notes payable                  (204)   (857,519)        (598)
    Interest expense- amortization of
     deferred loan costs                     (87,176)   (278,575)    (408,432)
    Income on investments                         --      47,802       47,802
    Gain on derivative liabilities        (1,673,706)         --    3,776,075
    Loss on extinguishment of
     convertible notes                            --          --  (22,529,228)
    Foreign currency exchange
     gain/(loss)                              12,059     711,914   16,893,223
    Outside business receives                     --      23,400           --
    Outside business disburses                    --    (161,000)          --
    Loss before taxation                 (11,511,752)  1,086,122     (758,676)

    Income tax                               283,108    (140,695)    (140,695)
    Minority interest in loss of
     consolidated subsidiary                (154,631)  1,868,735    1,868,735

    Net loss                                     RMB         RMB          RMB
                                         (11,383,275)  2,814,162      969,364




                EFUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                         NON-GAAP MEASURES OF PERFORMANCE


                                     March 31,2009        June 30,2009
                                          RMB           RMB           US$
                                      (Unaudited)   (Unaudited)   (Unaudited)
    NON-GAAP OPERATING INCOME
     (LOSS) AND ADJUSTED EBITDA

    Operating income (loss) (GAAP
     Basis)                           (9,035,671)    (9,750,303)   (1,426,964)

    Adjustments for non-GAAP
     measures of performance:
    Add back amortization of
     acquired software technology      2,996,500      3,018,653       441,782
    Add back amortization of
     intangibles                         904,352        905,642       132,541
    Add back share-based
     compensation expenses               765,226        752,311       110,101
    Adjusted non-GAAP operating
     income                           (4,369,593)    (5,073,697)     (742,540)
    Add back depreciation                145,241        286,790        41,972

    Adjusted EBITDA (Earnings before
     interest, taxes, depreciation
     and amortization)                (4,224,353)    (4,786,907)     (700,567)

    NON-GAAP OPERATING INCOME
     (LOSS) AND ADJUSTED EBITDA, as
     a percentage of revenue

    Operating income (loss) (GAAP
     BASIS)                                  -65%          -44%          -44%

    Adjustments for non-GAAP
     measures of performance:
    Amortization of acquired
     software technology                      22%           14%           14%
    Amortization of intangibles                7%            4%            4%
    Share-based compensation
     expenses                                  6%            3%            3%
    Adjusted non-GAAP operating
     income                                  -32%          -23%          -23%
    Depreciation                             1.1%          1.3%          1.3%

    Adjusted EBITDA (Earnings before
     interest, taxes, depreciation
     and amortization)                       -31%          -22%          -22%

    NON-GAAP EARNINGS PER SHARE
    Net Income(Loss)                   (7,469,813)  (11,383,275)   (1,665,951)
    Amortization of acquired
     software technology                2,996,500     3,018,653       441,782
    Amortization of intangibles           904,352       905,642       132,541
    Accretion on convertible notes          6,648           204            30
    Share-based compensation
     expenses                             765,226       752,311       110,101
    Adjusted Net income                (2,797,088)   (6,706,465)     (981,497)

    Adjusted non-GAAP diluted
     earnings per share                     (0.82)        (1.98)        (0.29)
    Shares used to compute non-GAAP
     diluted earnings per share         3,394,099     3,384,625     3,384,625





                EFUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                         Chinese Yuan (Renminbi)  U.S. Dollars
                                        December 31,   June 30,     June 30,
                                            2008         2009         2009
                                         (Unaudited)  (Unaudited) (Unaudited)
    Cash flows from operating
     activities:
    Net income (loss)                     (4,478,112) (18,853,088) (2,760,254)
    Adjustments to reconcile net income
     (loss) to net cash provided by
     (used in) operating activities:
    Depreciation                             891,183      432,031      63,253
    Amortization of intangible assets     16,940,774    7,802,991   1,142,425
    Impairment of intangible assets        2,143,290           --          --
    Amortization of discount on notes
     payable                                  33,212        6,852       1,003
    Amortization of deferred loan costs      978,204      173,237      25,363
    Gain on derivatives                  (33,122,465)     382,845      56,052
    Loss on extinguishment of
     convertible notes                    22,529,233           --          --
    Investment (income)/loss               3,552,902           --          --
    Loss on disposition of property and
     equipment                               385,995           --          --
    Provision for doubtful debt            2,340,706     (601,051)    (87,999)
    Provision for loss in inventory and
     work in process                       1,449,542           --          --
    Compensation expense for options
     issued to employees                   3,109,903    1,517,537     222,181
    Deferred taxes                           481,774     (776,598)   (113,701)
    Foreign exchange loss                 (2,222,996)          --          --
    Minority interest                        204,414      154,631      22,639
    Change in assets and liabilities:
    Accounts receivable                   (2,526,441)   7,562,535   1,107,220
    Refundable value added tax               935,333      513,382      75,163
    Deposits                                 156,695           --          --
    Advances to employees                    370,994   (1,138,969)   (166,755)
    Advances to suppliers                    991,888     (883,492)   (129,351)
    Other receivables                        136,565   (4,798,228)   (702,502)
    Prepaid expenses                         305,014   (1,497,998)   (219,320)
    Inventories                            1,421,159   (4,725,723)   (691,886)
    Trade payables                         1,230,861   (3,086,149)   (451,839)
    Other payables                         7,269,063    6,781,730     992,904
    Accrued expenses                       2,360,449   (1,351,672)   (197,896)
    Accrued interest                        (278,420)     (27,321)     (4,000)
    Taxes payable                         (1,084,826)  (2,781,130)   (407,181)
    Advances from customers                4,542,952      778,002     113,906
    Net cash provided by operating
     activities                           31,048,845  (14,415,643) (2,110,574)

    Cash flows from investing
     activities:
    Purchases of property and equipment   (1,618,331)    (861,635)   (126,151)
    Payments for intangible assets        (2,930,247)  (6,338,725)   (928,044)
    Long-term investments                         --           --          --
    Acquisition of business              (28,278,247)          --          --
    Loan to Guarantor                             --           --          --
    Amounts due from a related party              --           --          --
    Net cash used in investing
     activities                          (32,826,825)  (7,200,360) (1,054,195)

    Cash flows from financing
     activities:
    Issuance of ordinary shares for
     cash, net of offering costs paid             --           --          --
    Proceeds from exercise of warrants     3,657,908           --          --
    Issuance of convertible notes                 --           --          --
    Payment of make-whole obligation      (8,054,079)          --          --
    Repayment of short-term loans                 --           --          --
    Net cash provided by (used in)
     financing activities                 (4,396,171)          --          --
    Effect of exchange rate changes on
     cash                                   (265,463)      26,281       3,848
    Net increase (decrease) in cash       (6,439,614) (21,589,722) (3,160,921)
    Cash and cash equivalents at
     beginning of period                  67,227,348   60,787,734   8,899,847
    Cash and cash equivalents at end of
     period                               60,787,734   39,198,012   5,738,926
    Supplemental cash flow information
    Interest paid                          1,525,200   210,130.87   30,765.00

The earnings press release will be available on the investor relations page of its website at http://www.e-Future.com....

    For further information, please contact:

    eFuture Information Technology Inc.
     Troe Wen, Company Secretary
     Tel:   +86-10-5293-7699
     Email: ir@e-future.com.cn

    Investor Relations (Hong Kong)
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: efuture@taylor.rafferty.com

    Investor Relations (US)
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: efuture@taylor-rafferty.com

VDRP is a web-based product designed to meet the distribution and network management needs of manufacturers. Based on IBM Websphere middleware, this program employs a 3-layer structure by combining advanced management models and up-to-date information technology methods in order to establish independent distribution channels with operations expanding to nationwide retail terminals. By allowing companies to efficiently monitor and manage their entire distribution and sales network directly with distributors, eFuture's VDRP system helps customers to make a reasonable production schedule while cutting channel costs and improving the channel efficiency. Customers who benefit from this solution include large manufacturers of household and personal care products, as well as food, beverage, and alcohol producers.

The eFuture ONE E-Channel VDRP system will be deployed in both Fujian Hengan's headquarters and at its 1000+ distributors across China.

Adam Yan, Chairman and CEO of eFuture, said, "This contract is the latest in a series of new business agreements that we have recently signed, demonstrating our growing position as the software and service provider of choice to China's leading retail and consumer goods companies. We are excited about the opportunity to work with Fujian Hengan, a major player in the production, distribution and sale of personal hygiene products and food and snack products in China. We are confident that our cutting edge VDRP solution and ongoing support services will help Fujian Hengan cut costs and improve the efficiency of its distribution network."

About Fujian Hengan holding Co., Ltd.

Established in 1985, Fujian Hengan Holding Co., Ltd ("Fujian Hengan" or the "Company") is a core company of Hengan International Group Company Limited ("Hengan International" or the "Group", SEHK stock code: 1044). Hengan International started as a manufacturer and has today become a leading customer-oriented fast moving consumer goods provider responsible for production, sales and marketing. The company's products include Anle sanitary napkins and Meltable Glue Material for Sanitary Napkins. It was awarded one of the National Top 500 Country Enterprises and one of the National Top 500 Foreign Investment Enterprises. Today, Hengan International is mainly engaged in the production, distribution and sales of personal hygiene products and food and snack products in China. The Group currently operates a nationwide sales and distribution network and owns 23 PRC subsidiaries in 14 provinces. The shares of Hengan International have been listed on the Hong Kong Stock Exchange since 1998. For more information, please visit http://www.hengan.com/en... .

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (NASDAQ: EFUT - News) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front- end supply chain (from factory to consumer) market, especially in the retail and fast moving consumer goods industries. eFuture currently serves over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e-future.com.... .

    For more information, please contact:

    eFuture Contacts:

     Investor Contact:
     Troe Wen, Company Secretary
     eFuture Information Technology Inc.
     Tel:   +86-10-5293-7699
     Email: ir@e-future.com.cn

     Investor Relations (US):
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

     Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: eFuture@Taylor-Rafferty.com

     Media Contact:
     Jason Marshall
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

As noted in previous press releases, the Company reviewed its accounting for certain matters in 2007 and 2008 and has determined that restatements of those years are appropriate. Accordingly, those reports should no longer be relied upon. Instead, investors should rely only on the audited financials contained in the Company's Form 20-F filed on October 13, 2009.

The restatement of 2007 audited financials resulted in the following changes:

    -- 2007 total revenues increased by RMB850,632;
    -- 2007 gross profit increased by RMB493,280;
    -- 2007 operating expenses increased by RMB873,541;
    -- 2007 profit from operations decreased by RMB380,261; and
    -- 2007 net loss decreased by RMB5,954,433.

    Full Year 2008 Audited Financial Highlights:
    -- Total revenues increased 64.7% year-over-year to RMB139.9 million
       (US$20.5 million), from RMB84.9 million for the full year 2007.
       - Revenue from software license sales increased 57.4% year-over-year to
         RMB66.2 million (US$9.7 million), from RMB42.1 million in 2007.
       - Revenue from hardware sales increased 64.6% year-over-year to RMB26.7
         million (US$3.9 million), from RMB16.2 million in 2007.
       - Service fee income increased 76.4% to RMB47.0 million (US$6.9
         million), from RMB26.6 million in 2007.
    -- Gross profit increased 49.7% year-over-year to RMB57.8 million (US$8.5
       million), from RMB38.8 million in 2007.  Gross margin was 41.3%,
       compared to 45.4% in 2007.
    -- Operating loss was RMB10.0 million (US$1.5 million), as compared to an
       operating profit of RMB6.6 million in 2007.
    -- Net loss was RMB4.5 million (US$0.7 million), compared to net loss of
       RMB21.5 million in 2007.
    -- Diluted loss per share was RMB1.39 (US$0.20), compared to diluted loss
       per share of RMB8.01 in 2007.
    -- Operating cash flow as of December 31, 2008 increased 82.5%
       year-over-year to RMB31.0 million (US$4.6 million).
    -- Cash and cash equivalents as of December 31, 2008 was RMB60.8 million
       (US$8.9 million).
    -- Adjusted net income (non-GAAP) was RMB15.6 million (US$2.3 million), an
       increase of 315.9% from 2007.
    -- Non-GAAP adjusted diluted earnings per share were RMB5.0 (US$0.73).

Ms. Ping Yu, Chief Financial Officer of eFuture, stated, "Through the re- audit process, we identified material weaknesses and deficiencies in our internal controls, and as a result we are in the process of strengthening our internal controls, systems and procedures. We believe that the conclusion of this process will enable us to ensure robust, consistent and accurate financial reporting moving forward. Despite the adjustments made to our 2007 results, we believe our 2008 financial results have shown that we maintained a healthy financial footing and remain well positioned, and we reaffirm the upward revision of our 2009 revenue guidance of US$28 million to US$29 million."

"Our 2008 results demonstrate our ability to deliver consistent growth through the focused execution of our strategy. Throughout the year, we made steady progress on a number of strategic and tactical initiatives, and our business remains fundamentally strong. In 2008, we solidified our core enterprise software business, grew value-added services revenues, and expanded the scope and depth of our eService offering, including our B2B service and SaaS service for SCM and B2C eShopping platform. We believe this progress was made possible by our continued execution, focused growth strategy consisting of both organic and acquisitive initiatives, affordable and flexible suite of solutions, a large and diversified install base, and the continued resilience of China's retail and consumer goods industry. We will continue to focus on executing our growth strategy by investing in technology and business model innovations, expanding our client base within tier-2 and tier-3 cities in China, and actively pursuing domestic and international clients. Alongside each of these initiatives, we will strive to maximize our operational efficiency and enhance earnings growth to increase long-term shareholder returns," said Mr. Adam Yan, Chairman and Chief Executive Officer of eFuture.

    Full Year 2008 Audited Financial Results

    Revenue

Total revenues increased 64.7% year-over-year to RMB139.9 million (US$20.5 million), from RMB84.9 million for 2007. Service fee income increased 76.4% to RMB47.0 million (US$6.9 million), from RMB26.6 million in 2007, as a result of increased contribution from our B2B and SaaS services, and as a result of our expanded customer base.

The overall increases in revenue are primarily attributable to the significant growth across all product lines including software license sales driven by the re-alignment of the software business into seven vertical strategic business units and improved operating efficiency.

    Revenue Breakdown

                                     2007                   2008
                                      FY                     FY
                                     RMB        RMB         US$        Y-o-Y
                                    '000       '000        '000        change
    Software license sales         42,076     66,216       9,705       57.4 %
    Hardware sales                 16,198     26,656       3,907       64.6 %
    Service fee income             26,646     46,992       6,888       76.4 %
                         Total     84,921    139,864      20,500       64.7 %

Cost of Revenues

The cost of revenue for fiscal year 2008 increased 77.2% to RMB82.1 million (US$12.0 million) from RMB46.3 million in 2007.

    Cost of Revenues Breakdown

                                     2007                 2008
                                      FY                   FY
                                      RMB        RMB       US$          Y-o-Y
                                     '000       '000      '000         change
    Cost of software license
     sales                          15,648     22,929      3,361       46.5 %
    Cost of hardware sales          12,601     21,989      3,223       74.5 %
    Cost of service fees             6,965     20,248      2,968      190.7 %
    Amortization of
     acquired technology             8,231     13,308      1,951       61.7 %
    Amortization of
     software costs                  2,889      3,633        532       25.7 %
                          Total     46,335     82,106     12,035       77.2 %

The increase in cost of revenue was primarily attributable to a proportionate increase in sales volume and, to a lesser extent, cost in hardware sales along with an increase in service fee income expenses. The increases in service fee income expenses were affected by several factors:

    1. The Company added senior technical personnel to major accounts to
       explore service expansion and additional opportunities to generate
       revenues. eFuture devoted its senior technical personnel to its major
       accounts according to the customers' anticipated programming needs in
       the next three years.  The company expects these efforts will deliver
       more value to these customers' future operations, but devoting senior
       personnel results in higher immediate expenses for the Company in
       return for anticipated longer-term revenues for the Company.

    2. eFuture increased its marketing efforts on major accounts to further
       explore customers' potential needs in their IT operating plans.

    3. The Company changed its allocation on the basis of labor costs from the
       previous method of allocating its costs of revenue based on
       out-of-pocket expenses on projects to the current method of allocating
       costs of revenue based on labor costs.  The Company does not expect
       this change to have a material impact for future projects.

Gross Profit

Gross profit increased 49.7% to RMB57.8 million (US$8.5 million) for the fiscal year 2008 from RMB38.6 million in 2007.

Consolidated gross margin for 2008 was 41.3%, compared to 45.4% in 2007. The year-over-year decrease in gross margin was a result of increased amortization of acquired technology as a result of acquisitions made in 2007 and 2008, and increases in cost of hardware and cost of service fee income.

Operating Expenses

Research and development expenses in 2008 were RMB6.5 million (US$1.0 million), or 4.7% of total revenues, compared to 1.0% in 2007.

The increase in research and development expenses is mainly due to our larger expenditures in software integration and upgrading. Management believes that these efforts to integrate multiple versions of similar software into full-featured single software versions will reduce eFuture's R&D costs in the long term and reduce the future software implementation costs.

General and administrative expenses in 2008 were RMB40.5 million (US$5.9 million), or 28.9% of total revenues, compared to 22.6% in 2007.

The year-over-year increase was mainly due to a RMB1.5 million increase in salaries and a RMB3.0 million increase in the maintenance costs of eight new branches in 2008. In addition, the expenses associated with the compliance of auditing and Sarbanes-Oxley Act compliance contributed RMB1.6 million to the general and administration expenses.

Selling expenses in 2008 were RMB20.8 million (US$3.0 million), or 14.9% of total revenues, as compared to 14.1% in 2007. The year-over year increase was mainly due to an expansion of our sales force and a proportionate increase in sales volume in year-over-year.

Total share-based compensation expenses in 2008 were RMB2.7 million (US$0.4 million).

Operating Income/Loss

2008 operating loss was RMB10.0 million (US$1.5 million), as compared to an operating profit of RMB6.6 million in 2007. The decrease in operating profit is a result of four principal factors:

    1. RMB5.7 million increase in spending for R&D expenses.  We believe this
       significant increase of 697.7% over our 2007 R&D expenses of RMB0.8
       million is important for our continued competitiveness in our industry.
    2. RMB4.2 million charge as a result of our decision to reflect our cost
       of revenue through allocation on the basis of labor costs, as compared
       to our previous method of allocating our costs of revenue based on
       out-of-pocket expenses on projects. We believe this change will result
       in more accurate estimates of costs of revenues by project going
       forward.
    3. RMB4.8 million charge due to an upward adjustment in our accounting for
       a depository reserve we must maintain in China for employee social
       security costs.
    4. RMB1.7 million charge relating to impairment of intangible assets. In
       2008, management identified impairment on certain internally generated
       software as well as software acquired through acquisitions, as they are
       not expected to generate future revenue, or be sellable to a third
       party.  These intangibles were significantly aged, and no further
       capital investment for upgrades is planned.

Net Income/Loss and EBITDA

Net loss for the year ended December 31, 2008 was RMB4.51 million (US$0.7 million), improved significantly as compared to RMB21.5 million in 2007.

2008 basic and diluted losses per share were RMB1.39 (US$0.20) and RMB1.39 (US$0.20), respectively.

Adjusted net income (non-GAAP) for 2008 was RMB15.6 million (US$2.3 million), an increase of 315.9% from 2007.

2008 adjusted non-GAAP diluted earnings per share was RMB5.0 (US$0.73).

2008 EBITDA (non-GAAP) was RMB10.9 million (US$1.6 million), a decrease of 47.7% from 2007.

Balance Sheet and Cash Flow

In 2008, net cash generated from operating activities was RMB31.0 million (US$4.6 million), while net cash used in capital expenditures was RMB4.5 million (US$0.7 million).

As of December 31, 2008, cash and cash equivalents decreased 9.6% year- over-year to RMB60.8 million from RMB67.2 million in 2007, mainly due to the make-whole payments related to the conversion of US$4 million convertible notes, as well as payment for the acquisition obligations of Royalstone and Proadvancer in 2008.

Total accounts receivable as of December 31, 2008 increased 10.8% to RMB19.5 million (US$2.9 million) from RMB17.3 million as of December 31, 2007, mainly attributable to increases in total revenue.

Inventories as of December 31, 2008 decreased 49.9% to RMB2.9 million (US$0.4 million) from RMB5.7 million as of December 31, 2007. This decrease was mainly attributable to a change in allocation of the basis of labor costs from our previous method of allocating our costs of revenue based on out-of- pocket expenses on projects. This change resulted in lower inventories and the recognition of greater cost of revenues in the same period.

2009 Guidance

In 2009, eFuture plans to focus upon continued execution on its growth strategy, which consists of a combined organic and acquisitive approach. eFuture will continue to solidify its core enterprise software business and forge into new frontiers of eService and investing.

eFuture maintains its upward revision of guidance for 2009 and anticipates total revenues to be in the range of approximately US$28 million to US$29 million, representing annual growth of 38% to 40% over 2008. Adjusted EBITDA (non-GAAP) is expected to be in the range of approximately US$5.1 million to US$6.1 million. This forecast is a current and preliminary view and is subject to change.

Currency Convenience Translation

For the convenience of readers, certain RMB amounts have been translated into US dollars at the rate of RMB6.8225 to US$1.00, the noon buying rate for US dollars in effect on December 31, 2008 for cable transfers of RMB per US dollar as certified for customs purposes by the Federal Reserve Bank of New York.

Use of Non-GAAP Financial Measures

To supplement eFuture's unaudited consolidated financial results presented in accordance with U.S. GAAP, eFuture uses the following non-GAAP measures defined as non-GAAP financial measures by the SEC: adjusted EBITDA excluding amortization of acquired software technology, amortization of intangibles, share-based compensation expenses, depreciation, adjusted net income excluding amortization of acquired software technology, amortization of intangibles, share-based compensation expenses and accretion on convertible notes, adjusted basic and diluted earnings per share excluding amortization of acquired software technology, amortization of intangibles, share-based compensation expenses and accretion on convertible notes.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

eFuture believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding expenses that may not be indicative of its operating performance from a cash perspective or be indicative of its operating performance. eFuture believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to eFuture's historical performance and liquidity. eFuture computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. The accompanying paragraphs have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

eFuture's management also believes that EBITDA, defined as earnings before interest, income tax expense, depreciation and amortization is a useful financial metric to assess its operating and financial performance before the impact of investing and financing transactions and income taxes. In addition, eFuture's management believes that EBITDA is widely used by other companies in the software industry and may be used by investors as a measure of its financial performance. Given the significant investments that eFuture has made in property, equipment, depreciation and amortization expense comprises a meaningful portion of the Company's cost structure. eFuture's management believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures. The presentation of EBITDA should not be construed as an indication that the Company's future results will be unaffected by other charges and gains eFuture considers to be outside the ordinary course of its business.

The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets, income tax expense, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Further, share-based compensation expenses have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of eFuture's financial results. The term EBITDA or adjusted EBITDA is not defined under U.S. GAAP, and EBITDA or adjusted EBITDA is not a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing eFuture's operating and financial performance, you should not consider this data in isolation or as a substitute for its net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company's EBITDA and adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as eFuture does.

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (Nasdaq: EFUT - News) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front- end supply chain(from factory to consumer) market, especially in the retail and fast moving consumer goods industries. eFuture currently serves over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e- future.com.cn/

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, 2008 financial outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward- looking statements. eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to second parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the Company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the Company's ability to control expenses and maintain profit margins; the Company's ability to hire, train and retain qualified managerial and other employees; the Company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the performance of third parties under contracts with the Company; the expected growth of the Chinese economy software market in retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of October 13, 2009, and the Company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For more information, please contact:

    Investor Contact:
     Troe Wen, Company Secretary
     eFuture Information Technology Inc.
     Tel:   +86-10-5165-0998 x8804
     Email: ir@e-future.com.cn

    Investor Relations (US):
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

    Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: eFuture@Taylor-Rafferty.com

    Media Contact:
     Jason Marshall
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com



               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                        CONDENSED CONSOLIDATED BALANCE SHEETS

                                        Chinese Yuan (Renminbi)  U.S. Dollars
                                              December 31,       December 31,
                                            2007         2008         2008
                                         (Restated)
    ASSETS
    Current assets
    Cash and cash equivalents            67,227,348   60,787,734   $8,909,891
    Trade receivables, less allowance
     for doubtful accounts of
     RMB4,695,898 and
     RMB4,743,679 ($695,299),
     respectively                        17,259,965   19,468,029    2,853,504

    Refundable value added tax            3,691,035    2,755,702      403,914
    Deposits                                156,695           --           --
    Advances to employees                 3,576,947    3,205,953      469,909
    Advances to suppliers                   657,724      198,752       29,132
    Notes receivable - related party      3,000,000           --           --
    Other receivables                       576,965    2,229,535      326,791
    Prepaid expenses                        862,653      735,083      107,744
    Inventory and work in process         5,749,951    2,879,250      422,023
    Total current assets                102,759,283   92,260,038   13,522,908
    Non-current assets
    Long-term investments                 4,264,433      654,192       95,887
    Deferred loan costs                   7,557,383    1,182,588      173,336
    Property and equipment, net of
     accumulated depreciation of
     RMB5,191,489 and
     RMB3,020,838 ($442,776),
     respectively                         2,065,040    3,605,458      528,466

    Intangible assets, net of
     accumulated amortization of
     RMB19,799,245 and
     RMB34,704,373 ($5,086,753),
     respectively                        47,217,193   49,875,082    7,310,382

    Goodwill                             45,013,827   91,284,735   13,379,954
    Total non-current assets            106,117,876  146,602,055   21,488,025
    Total assets                        208,877,159  238,862,093  $35,010,933


                                        Chinese Yuan (Renminbi)  U.S. Dollars
                                                  December 31,    December 31,
                                               2007         2008         2008
                                          (Restated)
    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities
    Trade accounts payable                3,845,873    5,646,259     $827,594
    Other payable                           844,753   11,097,702    1,626,632
    Accrued expenses                      4,626,683    6,873,703    1,007,505
    Accrued interest                        278,420           --           --
    Taxes payable                         8,976,305    7,933,734    1,162,878
    Advances from customers              13,025,978   22,839,530    3,347,678
    Royalstone acquisition obligation    19,818,925    6,416,970      940,560
    Health field acquisition obligation   3,300,000      594,000       87,065
    Proadvancer System acquisition
     obligation                                  --   29,958,518    4,391,135
    BFuture acquisition obligation               --      392,877       57,585
    Deferred tax, current portion         1,098,063    1,553,197      227,658
    Total current liabilities            55,815,000   93,306,490   13,676,290
    Long-term liabilities
    3%-10% RMB6,822,500 ($1,000,000)
     convertible note payable, net of
     RMB6,796,432 ($996,179) of
     unamortized discount                    90,771       26,068        3,821

    Derivative liabilities               46,521,310    5,111,417      749,200
    Minority shareholder interests               --      204,414       29,962
    Deferred tax                          3,237,309    5,458,232      800,033
    Total long-term liabilities          49,849,390   10,800,131    1,583,016
    Shareholders' equity
    Ordinary shares, $0.0756 U.S.
     dollars par value; 6,613,756
     shares authorized; 2,924,702
     shares and 3,362,241 shares
     outstanding, respectively            1,811,589    2,039,196      298,893

    Additional paid-in capital          137,261,443  173,054,651   25,365,284
    Statutory reserves                    3,084,020    3,084,020      452,037
    Accumulated deficit                 (38,944,283) (43,422,395)  (6,364,587)
    Total shareholders' equity          103,212,769  134,755,472   19,751,627
    Total liabilities and shareholders'
     equity                             208,877,159  238,862,093  $35,010,933


               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                     CONDENSED CONSOLIDATED INCOME STATEMENTS

                                   Chinese Yuan (Renminbi)        U.S. Dollars
                                                                  For the Year
                                                                     Ended
                               For the Years Ended December 31,   December 31,


                                2006         2007         2008         2008
    Revenues                              (Restated)
    Software sales           29,832,720   42,076,411   66,215,769  $9,705,499
    Hardware sales           11,403,473   16,198,402   26,655,967   3,907,067
    Service fee income        6,607,337   26,646,180   46,991,766   6,887,764
    Total Revenues           47,843,530   84,920,993  139,863,502  20,500,330

    Cost of revenues
    Cost of software          7,665,866   15,648,282   22,928,605   3,360,733
    Cost of hardware         10,548,649   12,601,230   21,989,087   3,223,025
    Cost of service fee
     income                   1,887,676    6,965,367   20,247,922   2,967,816
    Amortization of acquired
     technology                      --    8,231,375   13,308,030   1,950,609
    Amortization of software
     costs                    2,727,198    2,889,118    3,632,744     532,465
    Total Cost of Revenue    22,829,389   46,335,372   82,106,388  12,034,648

    Gross Profit             25,014,141   38,585,621   57,757,114   8,465,682

    Operating Expenses
    Research and development    527,219      816,479    6,512,776     954,602
    General and
     administrative           7,298,980   19,192,286   40,488,964   5,934,623
    Selling and distribution
     expenses                 9,210,975   12,014,601   20,792,618   3,047,654
    Total Operating Expenses 17,037,174   32,023,366   67,794,358   9,936,879

    Profit/(loss) from
     operations               7,976,967    6,562,255  (10,037,244) (1,471,197)

    Interest income             141,230    3,533,326    1,424,029     208,725
    Interest expense            (13,471)  (2,813,489)  (1,246,780)   (182,744)
    Interest expenses -
     amortization of
     discount on notes
     payable                         --      (22,415)     (33,212)     (4,868)
    Interest expenses -
     amortization of
     deferred loan costs             --   (2,114,685)    (978,204)   (143,379)
    Income/(loss) on
     investments                     --      985,085   (3,552,902)   (520,763)
    Gain on derivatives              --   10,324,874   33,122,465   4,854,887
    Loss on extinguishment
     of convertible notes            --  (39,504,662) (22,529,233) (3,302,196)
    Foreign currency
     exchange gain                   --      544,173      368,127      53,958
    Profit/(loss) before tax  8,104,726  (22,505,538)  (3,462,954)   (507,577)
    Income tax
     expense/(benefit)               --      946,704     (810,744)   (118,834)
    Minority interest in
     profit/(loss) of
     consolidated subsidiary         --       32,520     (204,414)    (29,962)
    Net Income/(loss)         8,104,726  (21,526,314)  (4,478,112)   (656,374)
    Other comprehensive
     income/(loss)
    Foreign currency
     translation adjustment    (491,079)     491,079           --          --
    Comprehensive
     Income/(loss)            7,613,647  (21,035,235)  (4,478,112)  $(656,374)

    Earnings/(loss) per
     ordinary share
     Basic                         4.80        (8.01)       (1.39)     $(0.20)
     Diluted                       4.43        (8.01)       (1.39)     $(0.20)
    Basic Weighted-average
     Shares Outstanding       1,689,434    2,687,380    3,214,466   3,214,466
    Fully-Diluted Weighted-
     average Shares
     Outstanding              1,831,258    2,687,380    3,214,466   3,214,466



               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                         NON-GAAP MEASURES OF PERFORMANCE

                                    December 31, 2007    December 31, 2008
                                             RMB         RMB          US$
                                         (Unaudited)  (Unaudited) (Unaudited)
    NON-GAAP OPERATING INCOME (LOSS) AND
     ADJUSTED EBITDA

    Operating income (loss) (GAAP Basis)   6,562,255  (10,037,244) (1,471,197)

    Adjustments for non-GAAP measures of
     performance:
    Add back amortization of acquired
     software technology                   8,231,375   13,308,030   1,950,609
    Add back amortization of intangibles   2,889,118    3,632,744     532,465
    Add back share-based compensation
     expenses                              2,663,105    3,109,903     455,830
    Adjusted non-GAAP operating income    20,345,853   10,013,433   1,467,707
    Add back depreciation                    500,633      891,183     130,624

    Adjusted EBITDA (Earnings before
     interest, taxes, depreciation and
     amortization)                        20,846,486   10,904,616   1,598,331

    NON-GAAP OPERATING INCOME (LOSS) AND
     ADJUSTED EBITDA, as a percentage of
     revenue

    Operating income (loss) (GAAP BASIS)          8%          -7%         -7%

    Adjustments for non-GAAP measures of
     performance:
    Amortization of acquired software
     technology                                  10%          10%         10%
    Amortization of intangibles                   3%           3%          3%
    Share-based compensation expenses             3%           2%          2%
    Adjusted non-GAAP operating income           24%           7%          7%
    Depreciation                                0.6%         0.6%        0.6%

    Adjusted EBITDA (Earnings before
     interest, taxes, depreciation and
     amortization)                               25%           8%          8%

    NON-GAAP EARNINGS PER SHARE
    Net Income(Loss)                     (21,035,235)  (4,478,112)   (656,374)
    Amortization of acquired software
     technology                            8,231,375   13,308,030   1,950,609
    Amortization of intangibles            2,889,118    3,632,744     532,465
    Accretion on convertible notes            22,415       33,212       4,868
    Share-based compensation expenses      2,663,105    3,109,903     455,830
    Adjusted Net income                   (7,229,222)  15,605,777   2,287,398

    Adjusted non-GAAP diluted earnings
     per share                                 (2.41)        4.99        0.73
    Shares used to compute non-GAAP
     diluted earnings per share            2,997,921    3,124,463   3,124,463



               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                  Chinese Yuan (Renminbi)        U.S. Dollars
                                                                 For the Year
                                                                     Ended
                              For the Years Ended December 31,   December 31,
                               2006        2007         2008         2008
                                         (Restated)
    Cash flows from
     operating activities:
    Net income (loss)        8,104,726  (21,035,235)  (4,478,112)   $(656,374)
    Adjustments to
     reconcile net income
     (loss) to net cash
     provided by (used in)
     operating activities:
    Depreciation               679,876      500,633      891,183      130,624
    Amortization of
     intangible assets       2,727,198   11,120,493   16,940,774    2,483,074
    Impairment of
     intangible assets              --           --    2,143,290      314,150
    Amortization of
     discount on notes
     payable                        --       22,413       33,212        4,868
    Amortization of
     deferred loan costs            --    2,114,685      978,204      143,379
    Gain on derivatives             --  (10,324,873) (33,122,465)  (4,854,887)
    Loss on extinguishment
     of convertible notes           --   39,504,662   22,529,233    3,302,196
    Investment
     (income)/loss                  --     (985,085)   3,552,902      520,762
    Loss on disposition of
     property and equipment         --           --      385,995       56,577
    Provision for doubtful
     debt                           --    2,585,988    2,340,706      343,086
    Provision for loss in
     inventory and work in
     process                        --           --    1,449,542      212,465
    Compensation expense
     for options issued to
     employees                      --    2,663,105    3,109,903      455,830
    Deferred taxes                  --     (946,704)     481,774       70,615
    Foreign exchange loss           --     (652,397)  (2,222,996)    (325,833)
    Minority interest               --      (32,520)     204,414       29,962
    Change in assets and
     liabilities:
    Accounts receivable       (664,562) (13,788,696)  (2,526,441)    (370,310)
    Refundable value added
     tax                        72,593   (1,220,094)     935,333      137,095
    Deposits                   466,458     (111,752)     156,695       22,967
    Advances to employees     (162,781)  (2,378,346)     370,994       54,378
    Advances to suppliers     (334,840)    (214,694)     991,888      145,385
    Other receivables           60,552      537,784      136,565       20,017
    Prepaid expenses           (66,189)    (291,548)     305,014       44,707
    Inventories                 25,277      265,645    1,421,159      208,305
    Trade payables             208,096    1,827,696    1,230,861      180,412
    Other payables                  --   (1,013,731)   7,269,063    1,065,454
    Accrued expenses          (101,711)   1,570,905    2,360,449      345,980
    Accrued interest                --      278,420     (278,420)     (40,809)
    Taxes payable             (482,309)   2,437,452   (1,084,826)    (159,007)
    Advances from customers  2,116,454    4,575,302    4,542,952      665,878
    Net cash provided by
     operating activities   12,648,838   17,009,508   31,048,845   $4,550,948

    Cash flows from
     investing activities:
    Purchases of property
     and equipment            (537,340)    (527,743)  (1,618,331)    (237,205)
    Payments for intangible
     assets                 (3,818,597)  (7,151,309)  (2,930,247)    (429,498)
    Long-term investments           --   (4,475,216)          --           --
    Acquisition of business         --  (53,188,175) (28,278,247)  (4,144,851)
    Loan to Guarantor          800,000           --           --           --
    Amounts due from a
     related party                  --   (3,000,000)          --           --
    Net cash used in
     investing activities   (3,555,937) (68,342,443) (32,826,825) $(4,811,554)



                                  Chinese Yuan (Renminbi)         U.S. Dollars
                                         For the Years              For the
                                        Ended December 31,         Year Ended
                                                                  December 31,
                                2006         2007         2008         2008
                                         (Restated)
    Cash flows from
     financing activities:
    Issuance of ordinary
     shares for cash, net
     of
    offering costs paid     47,128,495           --           --           --
    Proceeds from exercise
     of warrants                    --    1,060,992    3,657,908      536,154
    Issuance of convertible
     notes                          --   69,079,430           --           --
    Payment of make-whole
     obligation                     --  (10,015,958)  (8,054,079)  (1,180,517)
    Repayment of short-term
     loans                  (2,800,000)          --           --           --
    Net cash provided by
     (used in) financing
     activities             44,328,495   60,124,464   (4,396,171)    (644,363)
    Effect of exchange rate
     changes on cash          (791,476)  (2,537,839)    (265,463)     (38,910)
    Net increase (decrease)
     in cash                52,629,920    6,253,690   (6,439,614)    (943,879)
    Cash and cash
     equivalents at
     beginning of year       8,834,817   61,464,737   67,227,348    9,853,770

    Cash and cash
     equivalents at end of
     year                   61,464,737   67,718,427   60,787,734   $8,909,891

    Supplemental cash flow
     information
    Interest paid               66,593      510,282    1,525,200     $223,554

    Non-cash Investing and
     Financing Activities
    Acquiring assets by
     assuming payment
     obligation                     --   23,118,925   36,813,365   $5,395,876
    Conversion of
     convertible notes              --   36,473,000   27,273,200   $3,997,538
    Issuance of common
     stock for acquisition          --    8,555,961   14,310,115   $2,097,488

The delay is principally due to the Company's determination to review its accounting for certain convertible notes issued in 2007 in connection with a private placement of securities with three institutional investors (the "2007 Notes"). The 2007 Notes consisted of $10 million in senior notes convertible into the Company's ordinary shares at an initial rate of $24.99 per share (subsequently reset to $19.00 per share on June 11, 2008). As of July 15, 2009, the institutional investors have converted, in the aggregate, $9 million of the 2007 Notes into the Company's ordinary shares.

In connection with its review, the Company has engaged Marsh, an independent valuation firm to provide additional guidance regarding the 2007 Notes. Pending the completion of Marsh's review, the Company cannot estimate at this time whether any adjustments to previously announced financial results will be required.

Because the Company has delayed its filing of the 2008 20-F, it anticipates that it will shortly receive a notice from the NASDAQ Stock Market that it is not in compliance with NASDAQ Marketplace Rule 5250(c)(1). Rule 5250(c)(1) requires listed companies to file periodic financial reports like the Form 20-F with the Securities and Exchange Commission on or before the date they are required to be filed. The Company expects that this notice will be issued in accordance with standard NASDAQ procedures and that the notification will not have an immediate effect on the listing of the Company's ordinary shares.

The Company is working diligently to complete the assessment process and intends to file the 2008 20-F as promptly as possible.

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (NASDAQ: EFUT) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain (from factory to consumer) market, especially in the retail and fast moving consumer goods industries. eFuture currently serves over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e-future.com.... .

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, 2009 financial outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward-looking statements. eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to second parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the Company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the Company's ability to control expenses and maintain profit margins; the Company's ability to hire, train and retain qualified managerial and other employees; the Company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the performance of third parties under contracts with the Company; the expected growth of the Chinese economy software market in retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of June 19, 2009, and the Company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For more information, please contact:

    Investor Contact:
     Troe Wen, Company Secretary
     eFuture Information Technology Inc.
     Tel:   +86-10-5293-7699
     Email: ir@e-future.com.cn

    Investor Relations (US):
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

    Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: eFuture@Taylor-Rafferty.com

    Media Contact:
     Jason Marshall
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

BEIJING, June 9 /PRNewswire-Asia/ -- eFuture Information Technology Inc. (Nasdaq: EFUT, the "Company" or "eFuture"), a leading provider of software and services in China's rapidly growing retail and consumer goods industries, today announced its unaudited financial results for the first quarter ended March 31, 2009.

    First Quarter 2009 Financial Highlights:
    -- Total revenues decreased 0.3% year-over-year to RMB14.0 million (US$2.0
       million).
       -- Revenue from software license sales decreased 34.5% year-over-year
          to RMB5.0 million (US$0.7 million).
       -- Revenue from hardware sales decreased 1.0% year-over-year to
          RMB1.4million (US$0.2 million).
       -- Service fee income increased 51.3% year-over-year to RMB7.6 million
          (US$1.1 million).
    -- Gross profit increased 5.7% year-over-year to RMB5.0 million (US$0.7
       million). Gross margin increased to 35.7% from 33.6% in the first
       quarter of 2008.
    -- Operating loss decreased 2.0% year-over-year to RMB6.7 million (US$1.0
       million).
    -- Net loss improved 28.4% year-over-year to RMB6.6 million (US$1.0
       million).
    -- Diluted net loss per share was RMB1.96 (US$0.29), as compared to net
       loss per share of RMB3.14 the first quarter of 2008.
    -- Operating cash flow was -RMB15.1 million (-US$2.2 million).
    -- Adjusted net loss (non-GAAP) was RMB1.6 million (US$0.2 million),
       compared to an adjusted net loss of RMB3.2 million in the first quarter
       of 2008.
    -- Non-GAAP adjusted diluted loss per share was RMB0.48 (US$0.07).

Mr. Adam Yan, Chairman and Chief Executive Officer of eFuture, said, "We continued to make steady progress in what has historically been our seasonally low quarter. During the first quarter, two of our strategic business units ("SBUs"), including Logistics and Department Store and Shopping Mall, faced headwinds from ongoing softness in the broader economy as our retail clients in these segments delayed new store openings. However, the performance of the other four SBUs remained solid. In fact, our Key Accounts SBU has signed a number of large contracts with several key clients, including Lianhua Supermarket, one of the largest supermarket players in China. The associated revenues from these contracts were not fully reflected in the first quarter revenue, rather they were recorded as unrecognized revenue due to their relatively longer project completion time. In addition, our service fee revenue increased 51.3%, which demonstrates that our strategy to mitigate the impact of future seasonality by growing our eService and value-added service fee income gained strong momentum in the first quarter. We expect this trend to continue, and believe that our eServices, including SaaS (Software-as-a-Service), represent key growth drivers for the mid- to long-term.

"The recently announced launch of our T+1 Supply Chain Financing ("T+1 SCF") service represents another key achievement in the quarter, further diversifying our revenue base and SaaS offering, while helping our clients to cut costs and increase efficiency. This new service bolsters our industry leading suite of end-to-end software and services, and demonstrates our commitment to technological and business model innovation.

"While the macroeconomic environment in China remains uncertain, recent statistics indicate a healthy increase in consumer spending during the first quarter. As a result, we believe eFuture remains well positioned to extend its track record of growth throughout 2009. Our focus for the year will remain on executing our growth strategy through investment in innovation, expanding our customer base within tier-2 and tier-3 cities in China, and actively pursuing domestic and international clients."

First Quarter 2009 Operational Highlights:

Core Business (Software License, Hardware, and Service Fee excluding eServices)

While the Logistics, Department Store and Shopping Mall SBUs have experienced some softness due to the economic downturn, which has caused some retail clients to delay new store openings, the performance of the other 4 SBUs remained solid. The Company continued to see strong demand for its solutions in both fast moving consumer goods and the grocery market during the quarter. As evidence of this, the Company continued to win almost every significant account that it competed for in the grocery industry. Among the major new accounts won were Lianhua Supermarket, one of the largest supermarket players in China, with nationwide chain stores and a full range of retail segments.

In addition, management took advantage of the seasonally slower first half of the year to refine its business strategies, implement structural adjustments and provide staff training, in order to further enhance operating efficiency and competitive positioning to capture potential business opportunities in the second half of the year. To this end, during the first quarter of 2009, the Company dissolved its Small-to-Medium Business ("SMB") unit and transferred the resources among the other vertical strategic business units ("SBU"), as the majority of the clients targeted by the marketing strategy to further penetrate the second- and third-tier cities in China are SMBs. Management believes the modification in its SBUs will help to accelerate the speed of business development in these regions in China.

eService Business

In line with eFuture's organic growth strategy to expand its eService offering, the Company is beginning to see growing interest from existing clients to scale-up and expand their relationship with eFuture by utilizing its eService applications.

The Company completed development of the bundled package offering bFuture SCM SaaS service with POS-ERP in 2 SBUs, including the Department Store and Shopping Mall Business Unit and the Grocery Business Unit.

The Company is currently serving 4 of Wangfujing Group's 17 stores and over 2,000 of their 15,000 suppliers. In addition, two retailers are deploying the package. We expect to see more profitable growth from this service as we increase the scale of the operation.

The Company recently launched a pilot T+1 SCF program through its subsidiary Beijing bFuture Information Technology Co., Ltd. ("bFuture"). The program is designed to shorten the payment cycle between retailers and their small- to medium-sized suppliers by providing short-term loans to retailers with good credit, therefore allowing suppliers to receive payment the day following a transaction. This program complements bFuture's existing suite of SaaS services geared towards facilitating the flow of goods and services in a cost- and time-efficient manner.

Research and Development

eFuture's research lab launched two new solutions, (i) a Customer ECG (electrocardiogram) solution, which is an effective tool for retailers to manage customer loyalty through examining and tracking consumer spending patterns and habits, and (ii) a second generation of the Just-in-Time Visual Supply Chain Process Management solution based on service oriented architecture ("SOA"), which was first launched in 2007. Management believes these solutions will enable eFuture to significantly broaden its technology offering, increase penetration with leading retailers and strengthen its competitive positioning.

Sales & Marketing Initiatives

Further to the success of its ongoing marketing initiative in the mega cities and tier one cities, and its strategy to become the partner of choice for global companies in China, eFuture has invested approximately RMB7.5 million in a new marketing initiative plan. The aim of the plan is to expand the Company's geographic coverage by deepening its penetration in China's second- and third-tier cities, while providing seamless support for its global and top accounts as they look to expand into these regions in China.

As part of the plan, besides restructuring its SMB business unit, the Company also established a new specialized marketing team with approximately 50 staff distributed across China in order to bolster sales in all the key markets in China. This group has been dedicated to further speed up the sales cycle from pre-pipeline to pipeline to order, with the aim to dramatically increase eFuture's market share in China's retail and consumer goods industries.

Furthermore, the Company recently announced the appointment of a new Chief Marketing Officer, Mr. James Mu, who brings to eFuture over twenty years of experience in the retail and consumer goods industries. Mr. Mu will be responsible for overall marketing strategy and brand building initiatives. In addition, he will be in charge of the re-organization and integration of eFuture's marketing and promotional materials and tools, to streamline and strengthen marketing initiatives.

Finally, the Company has established dedicated vertical accounts sales teams with extensive sector experience within each of eFuture's six SBUs to provide specialized support in generating new business for each vertical industry that the Company services.

Convertible Notes

As of March 31, 2009, we had US$1 million in convertible notes remaining, which will be amortized over the life of the notes. In the past quarter, we recognized an expense of RMB0.26 million against profit as a result of these notes.

First Quarter 2009 Financial Results

Revenue

Revenue for the first quarter 2009 decreased 0.3% to RMB14.0 million (US$2.0 million) from RMB14.01 million in the first quarter 2008.

The decrease in software license revenues is primarily attributable to normal seasonality, the effects of the economic downturn on the Logistics, Department Store and Shopping Mall SBUs, as well as the accounting of some of the large contracts signed during the first quarter as unrecognized revenues due to their longer project completion time.

Service fee income increased 51.3% year-over-year, and as a percentage of revenue continued to increase and accounted for 54.6% of total revenue in the first quarter 2009, as compared to 28.0% in the same period a year earlier, signifying that efforts to mitigate revenue seasonality through the Company's SaaS business model are successfully gaining momentum.

    Revenue Breakdown

                                          2008Q1           2009Q1
                                                                       Y-o-Y
                                         RMB '000 RMB '000 USD '000   Change
    Software license sales                  7,565    4,956      725   (34.5%)
    Hardware sales                          1,409    1,395      204    (1.0%)
    Service fee income                      5,040    7,625    1,116    51.3%
    Total                                  14,014   13,977    2,046    (0.3%)


    Cost of Revenues

The cost of revenue for the first quarter 2009 decreased 3.3% to RMB9.0 million (US$1.3million) from RMB9.3 million in the first quarter 2008.

    Cost of Revenues Breakdown

                                         2008Q1           2009Q1
                                                                      Y-o-Y
                                        RMB '000 RMB '000 USD '000   Change
    Cost of software license sales         1,845    1,299      190   (29.6%)
    Cost of hardware sales                 1,205    1,368      200    13.5%
    Cost of service see                    1,493    2,311      338   54.8 %
    Amortization of acquired technology    3,860    3,110      455   (19.0%)
    Amortization of software costs           897      904      132     0.8%
    Total                                  9,300    8,992    1,316    (3.3%)

The decrease in cost of revenue was primarily attributable to decreased software license sales and amortization of acquired technologies.

Gross Profit

First quarter 2009 gross profit increased 5.7% year-over-year to RMB5.0 million (US$0.7 million), from RMB4.7 million in the first quarter 2008.

Consolidated gross margin for the first quarter of 2009 was 35.7% compared with 33.6% in the first quarter of 2008, primarily due to decreased amortization of acquired technologies.

Operating Expenses

Research and development expenses for the first quarter 2009 increased 44.8% year-over-year to RMB242,260 (US$35,455), or 1.7% of total revenues, compared with RMB167,288, or 1.2% of total revenues in the first quarter 2008 and RMB5.0 million, or 7.0% of total revenues in the fourth quarter 2008. Research and development expenses as a percentage of revenues increased slightly year-over-year, but down sequentially due to eFuture's strengthened commitment to standardized products and advanced technologies.

General and administrative expenses for the first quarter 2009 decreased 27% year-over-year to RMB5.2 million (US$0.8 million), or 37.5% of total revenues, compared with RMB7.9 million, or 56.2% of total revenue in the first quarter 2008 and RMB11.0 million, or 15.3% of total revenue in the fourth quarter 2008. General and administrative expenses as a percentage of revenues decreased noticeably year-over-year, the improvement was primarily due to the adoption of a more rationalized bad debt provision policy, while the sequential increase in general administration expenses is mainly a result of the lower revenue stream in a seasonally slow first quarter.

Selling and distribution expenses for the first quarter 2009 increased 52.7% year-over-year to RMB5.7 million (US$0.8 million), or 41.1% of total revenues, compared with RMB3.8 million, or 26.9% of total revenue in first quarter 2008 and RMB4.8 million, or 6.7% of total revenue in the fourth quarter 2009. The year-over-year changes were due to the consolidation of Wangku, as eFuture has increased its shares from 20% to 51%.

Operating Loss

Operating loss in the first quarter 2009 was RMB6.7 million (US$0.7 million), compared with an operating loss of RMB7.1 million in the first quarter 2008. The improvement was mainly attributable to decreased amortization of acquired technologies and improved bad debt expenses.

Net Loss and EBITDA

As a result of the foregoing, first quarter 2009 net loss was RMB6.6 million (US$1.0 million) compared with a net loss of RMB9.2 million in the first quarter 2008, an improvement of 28.4%.

Basic and diluted losses per share in the first quarter 2009 were both RMB1.96 (US$0.29), compared to RMB3.14 in the first quarter 2008.

Adjusted net loss (non-GAAP) for the quarter was RMB1.6 million (US$0.2 million), compared to an adjusted net loss of RMB3.2 million in the first quarter 2008.

First quarter 2009 adjusted non-GAAP diluted loss per share was RMB0.48 (US$0.07).

EBITDA (non-GAAP) for the first quarter 2009 was -RMB1.8 million (-US$0.3 million), compared with -RMB1.4 million in the first quarter 2008.

Balance Sheet and Cash Flow

In the first quarter 2009, net cash loss from operating activities was RMB15.1 million (US$2.2 million), while net cash used in investing activities was RMB3.9 million (US$0.6 million).

As of March 31, 2009, cash and cash equivalents decreased 30.1% from December 31, 2008 to RMB42.5 million (US$6.2 million), mainly due to normal seasonal patterns in which cash flow decreases in the first half while peaking in the second half of the fiscal year.

Total accounts receivable as of March 31, 2009 increased 67.5% to RMB23.2 million (US$3.4 million) from RMB13.8 million as of March 31, 2008. This increase was mainly attributable to the consolidation of Wangku after increasing eFuture's shares from 20% to 51%, and the bad debt adjustment of RMB2.5 million.

Inventories as of March 31, 2009 were flat year-over-year at RMB13.7 million (US$2.0 million) as a few of our contracts are still classified as works-in-process which will become cost when they reach the point of revenue recognition.

2009 Outlook and Guidance

As of March 31, 2009, eFuture's unrecognized revenue base was approximately US$9.2 million, of which 90% is expected to be recognized within 2009.

To better reflect its strong sales pipeline to date, particularly as a result of a rebound in its Logistics SBU, eFuture revised up 2009 revenue guidance to be in the range of US$28 million to US$29 million, representing annual growth of 38% to 40% over 2008 total revenues. Adjusted EBITDA (non- GAAP) is expected to be in the range of approximately US$5.1 million to US$6.1 million. This forecast is a current and preliminary view and is subject to change.

Conference Call Information

eFuture's management will host a conference call on Wednesday, June 10, 2009 at 5:00 am (Pacific) / 8:00 am (Eastern) / 8:00 pm (China) to discuss its first quarter 2009 financial results and recent business activity. The conference call may be accessed by calling:

    United States toll free:  +1-866-586-2813
    China North:              10-800-611-0127
    China South:              10-800-361-0079
    United Kingdom toll free: 0800-056-9662
    Hong Kong toll free:      800-965-808
    Passcode:                 eFuture

Please dial-in 10 minutes before the call is scheduled to begin.

A replay of the conference call may be accessed by phone at the following numbers until Tuesday, June 16, 2009:

    United States toll free   +1-866-214-5335
    China North               10-800-714-0386
    China South               10-800-140-0386
    United Kingdom toll free: 0800-731-7846
    Hong Kong toll free       800-901-596
    Passcode                  99188365

Additionally, a live and archived webcast of the conference call will be available on the investor relations section of eFuture's website at

eFuture Information Technology Inc. (NASDAQ: EFUT - News) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain (from factory to consumer) market, especially in the retail and fast moving consumer goods industries. eFuture currently serves over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e-future.com.... .

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, 2009 financial outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward-looking statements. eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to second parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the Company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the Company's ability to control expenses and maintain profit margins; the Company's ability to hire, train and retain qualified managerial and other employees; the Company's ability to develop new software and pilot new business models at desirable locations in a timely and cost- effective manner; the performance of third parties under contracts with the Company; the expected growth of the Chinese economy software market in retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of June 9, 2009, and the Company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For further information, please contact:

    Investor Contact:
     Troe Wen, Company Secretary
     eFuture Information Technology Inc.
     Tel:   +86-10-5293-7699
     Email: ir@e-future.com.cn

    Investor Relations (US):
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com

    Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: eFuture@Taylor-Rafferty.com

    Media Contact:
     Jason Marshall
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com




               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                        CONDENSED CONSOLIDATED BALANCE SHEETS

                                        Chinese Yuan (Renminbi)  U.S. Dollars
                                        December 31,   March 31,     March 31,
                                            2008         2009         2009
                                        (Unaudited)  (Unaudited)  (Unaudited)
    ASSETS
    Current assets
    Cash and cash equivalents            60,723,734   42,460,982    6,214,196
    Trade receivables, less allowance
     for doubtful accounts of
     RMB2,109,910, RMB4,695,898, and
     RMB7,539,546 respectively           18,185,221   23,184,359    3,393,048

    Refundable value added tax            2,859,018    1,677,975      245,573
    Deposits                                     --           --           --
    Advances to employees                 2,978,844    3,957,154      579,132
    Advances to suppliers                   847,831    1,186,250      173,609
    Other receivables                       852,191    1,396,544      204,385
    Prepaid expenses                      1,177,396      993,138      145,347
    Inventory                            10,406,711   14,093,665    2,062,618
    Total current assets                 98,030,946   88,950,066   13,017,908

    Non-current assets
    Long-term investments                   654,192      654,192       95,741
    Deferred loan costs, net of
     RMB6,700,671 of amortization           642,744      673,888       98,624
    Deferred assets                       2,809,201    6,552,316      958,936
    Property and equipment, net of
     accumulated depreciation of
     RMB4,690,856, RMB5,191,489, and
     RMB5,858,293 respectively            3,202,286    3,155,857      461,862

    Intangible assets, net of
     accumulated amortization of
     RMB8,678,751, RMB19,799,245 and
     RMB31,481,989 respectively          59,261,346   57,915,045    8,475,910

    Goodwill                             63,506,496   69,595,844   10,185,404
    Total non-current assets            130,076,265  138,547,142   20,276,477

    Total assets                        228,107,211  227,497,208   33,294,386

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities
    Trade accounts payable                8,393,534    4,667,102      683,034
    Other payable                         3,574,142    3,454,587      505,581
    Accrued expenses                      6,946,751    3,893,034      569,748
    Accrued interest                             --           --           --
    Taxes payable                         8,124,009    6,000,035      878,110
    Deferred Revenues                     8,073,981    7,228,517    1,057,899
    Deferred Tax                          4,691,336    4,698,487      687,627
    Advances from customers              16,502,902   23,014,933    3,368,253
    Royalstone acquisition obligation,
     current portion                      6,405,610    6,415,374      938,895
    Health Filed acquisition obligation     592,948      552,855       80,911
    Proadvancer System acquisition
     obligation                          14,533,644   14,555,799    2,130,252
    Make-whole obligation, current
     portion                                426,734      322,397       47,183
    Convertible note payable, current
     portion                                899,826           --           --
    Total current liabilities            79,165,416   74,803,120   10,947,492

    Long-term liabilities
    Royalstone acquisition obligation,
     net of current portion                      --           --           --
    Make-whole obligation, net of
     current portion                        718,000      719,094      105,240
    12% RMB75,108,000 ($10,000,000)
     convertible note payable, net of
     RMB53,379,624 unamortized discount
     based on an imputed interest rate
     of 28.9%, net of current portion        64,998      674,517       98,716

    Minority shareholder interests        4,318,148    1,972,733      288,711
    Total long-term liabilities           5,101,146    3,366,345      492,667

    Shareholders' equity
    Ordinary shares, $0.0756 U.S.
     dollars (RMB0.6257) par value;
     6,613,756 shares authorized;
     2,633,500 shares and 2,633,500
     shares outstanding (2,833,580
     shares pro forma), respectively      2,038,631    2,038,631      298,355

    Additional paid-in capital          222,849,091  224,849,534   32,906,897
    Statutory reserves                    3,084,020    3,084,020      451,349
    Accumulated foreign currency
     translation adjustment              (8,231,428)          --           --
    Accumulated deficit                 (75,899,664) (80,644,442) (11,802,374)
    Total shareholders' equity          143,840,650  149,327,743   21,854,226

    Total liabilities and shareholders'
     equity                             228,107,211  227,497,208   33,294,386



               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                     CONDENSED CONSOLIDATED INCOME STATEMENTS

                                        Three Months Ended
                                          December
                        March 31,2008     31, 2008         March 31,2009
                             RMB            RMB          RMB         US$
                         (Unaudited)    (Unaudited)  (Unaudited) (Unaudited)
    Revenues
    Software sales          7,565,110     31,830,223  4,956,292       725,357
    Hardware sales          1,409,113     19,685,341  1,395,170       204,184
    Service fee income      5,040,249     20,180,605  7,625,916     1,116,058
    Total Revenues         14,014,472     71,696,169 13,977,378     2,045,600

    Cost of revenues
    Cost of software        1,845,125      8,819,265  1,298,681       190,063
    Cost of hardware        1,204,786     17,486,295  1,367,984       200,206
    Cost of service fee
     income                 1,493,129      8,475,719  2,311,579       338,301
    Amortization of
     acquired
     technology             3,860,243      2,409,791  3,110,375       455,206
    Amortization of
     software costs           896,856        929,118    903,707       132,258
    Total Cost of
     Revenue                9,300,139     38,120,187  8,992,326     1,316,034

    Gross Profit            4,714,333     33,575,982  4,985,052       729,566

    Expenses
    Research and
     development              167,288      5,044,572    242,261        35,455
    General and
     administrative         7,870,673     11,020,454  5,742,794       840,462
    Selling and
     distribution
     expenses               3,759,182      4,804,225  5,741,659       840,296
    Total Expenses         11,797,143     20,869,250 11,726,713     1,716,213

    Profit from
     operations            (7,082,810)    12,706,732 (6,741,662)     (986,647)

    Interest income           112,611         70,936    180,273        26,383
    Interest expense         (314,520)     8,437,618   (110,484)      (16,169)
    Amortization of
     discount on notes
     payable                 (488,504)    (7,469,551)  (199,648)      (29,219)
    Amortization of
     loan costs              (242,378)       298,644    (55,387)       (8,106)
    Income (loss) on
     investments             (558,389)        17,754         --            --
    Foreign currency
     exchange loss           (805,787)       566,316   (883,409)     (129,288)
    Outside business
     receives                      --         27,824      6,320           925
    Outside business
     disburses                     --       (855,746)        --            --
    Impairment of
     intangible assets             --     (2,014,634)        --
    Income tax expense             --       (199,490)        --            --
    Prior to the annual
     adjustment of
     profit and loss               --             --         --            --
    Minority interest         154,491     (2,522,638) 1,197,422       175,244
    Net loss               (9,225,286)     9,063,764 (6,606,575)     (966,877)

    Earnings per
     ordinary share
    Basic                       (3.14)          2.70      (1.96)        (0.29)
    Diluted                     (3.14)          2.67      (1.96)        (0.29)



               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                         NON-GAAP MEASURES OF PERFORMANCE

                       December
                       31, 2008      March 31, 2008        March 31, 2009
                          RMB              RMB           RMB           US$
                      (Unaudited)      (Unaudited)   (Unaudited)   (Unaudited)
    NON-GAAP OPERATING
     INCOME (LOSS) AND
     ADJUSTED EBITDA

    Operating income
     (loss) (GAAP
     Basis)              12,706,732    (7,082,810)   (6,741,662)     (986,647)

    Adjustments for
     non-GAAP measures
     of performance:
    Add back
     amortization of
     acquired software
     technology           2,409,791     3,860,243     3,110,375       455,206
    Add back
     amortization of
     intangibles            929,118       896,856       903,707       132,258
    Add back share-
     based
     compensation
     expenses               765,657       785,699       765,226       111,991
    Adjusted non-GAAP
     operating income    16,811,298    (1,540,011)   (1,962,355)     (287,192)
    Add back
     depreciation           (14,765)      150,246       194,867        28,519

    Adjusted EBITDA
     (Earnings before
     interest, taxes,
     depreciation and
     amortization)       16,796,532    (1,389,765)   (1,767,487)     (258,673)

    NON-GAAP OPERATING
     INCOME (LOSS) AND
     ADJUSTED EBITDA,
     as a percentage
     of revenue

    Operating income
     (loss) (GAAP
     BASIS)                     18%          -51%          -48%          -48%

    Adjustments for
     non-GAAP measures
     of performance:
    Amortization of
     acquired software
     technology                  3%           28%           22%           22%
    Amortization of
     intangibles                 1%            6%            6%            6%
    Share-based
     compensation
     expenses                    1%            6%            5%            5%
    Adjusted non-GAAP
     operating income           23%          -11%          -14%          -14%
    Depreciation             -0.02%            1%          1.4%         1.39%

    Adjusted EBITDA
     (Earnings before
     interest, taxes,
     depreciation and
     amortization)              23%          -10%          -13%          -13%

    NON-GAAP EARNINGS
     PER SHARE
    Net Income(Loss)      9,063,764    (9,225,286)   (6,606,575)     (966,877)
    Amortization of
     acquired software
     technology           2,409,791     3,860,243     3,110,375       455,206
    Amortization of
     intangibles            929,118       896,856       903,707       132,258
    Accretion on
     convertible notes    7,469,551       488,504       199,648        29,219
    Share-based
     compensation
     expenses               765,657       785,699       765,226       111,991
    Adjusted Net
     income              20,637,882    (3,193,983)   (1,627,619)     (238,203)

    Adjusted non-GAAP
     diluted earnings
     per share                 6.08         (1.09)        (0.48)        (0.07)
    Shares used to
     compute non-GAAP
     diluted earnings
     per share         3,394,099.19  2,934,419.00  3,394,099.19  3,394,099.19




               E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                         Chinese Yuan (Renminbi)  U.S. Dollars
                                         December 31,   March 31,   March 31,
                                            2008         2009         2009
                                         (Unaudited)  (Unaudited) (Unaudited)
    Cash flows from operating
     activities:
    Net income (loss)                    (30,132,466)  (6,606,575)   (966,877)
    Adjustments to reconcile net income
     (loss) to net cash provided by
     (used in) operating activities:
    Depreciation                             839,266      205,374      30,057
    Amortization of intangible assets     15,135,140    4,014,581     587,537
    Amortization of discount on notes
     payable                              27,201,387      199,648      29,219
    Amortization of deferred loan costs    3,637,607       55,387       8,106
    Investment income                             --           --          --
    Interest on notes payable
     contributed by shareholders                  --           --          --
    Compensation expense for options
     issued to employees                   3,110,891      765,226     111,991
    Foreign Exchange Loss                         --           (1)         --
    Minority interest                     (1,102,973)  (1,197,422)   (175,244)
    Change in assets and liabilities:
    Accounts receivable                   (1,881,912)    (302,544)    (44,278)
    Refundable value added tax               981,435    1,181,043     172,847
    Deposits                                      --           --          --
    Advances to employees                  1,131,108     (978,229)   (143,165)
    Advances to suppliers                    246,730       36,271       5,308
    Other receivables                     (2,792,879)  (2,678,102)   (391,942)
    Prepaid expenses                        (125,414)     184,665      27,026
    Inventories                           (4,656,761)  (3,686,953)   (539,588)
    Trade payables                         4,162,135   (4,064,595)   (594,857)
    Other payables                         3,070,343    1,081,581     158,290
    Accrued expenses                       4,751,875   (3,049,435)   (446,287)
    Accrued interest                              --           --          --
    Taxes payable                           (560,508)  (2,123,974)   (310,845)
    Deferred Tax                                  --           --          --
    Deferred revenue                       3,650,622     (845,464)   (123,734)
    Decrease in accrued make-whole
     obligations                                  --           --          --
    Advances from customers                1,511,210    2,674,600     391,430
    Other non-cash expenditures            3,477,926       30,454       4,457
    Net cash provided by operating
     activities                           31,654,762  (15,104,463) (2,210,549)

    Cash flows from investing
     activities:
    Purchases of property and equipment   (1,384,465)    (107,545)    (15,739)
    Payments for software                 (5,034,421)  (3,835,015)   (561,257)
    Long-term investments                 (1,105,450)          --          --
    Payment to purchase net assets of
     Acquirees                           (22,135,101)          --          --
    Loan to Guarantor                             --           --          --
    Amounts due from a related party              --           --          --
    Net cash used in investing
     activities                          (29,659,437)  (3,942,560)   (576,997)

    Cash flows from financing
     activities:
    Issuance of ordinary shares for
     cash, net of offering costs paid      3,614,764           --          --
    Issue convertible notes                       --           --          --
    Repayment of short term loan                  --           --          --
    Payment of make-whole obligation      (9,296,824)    (104,988)    (15,365)
    Net cash provided by (used in)
     financing activities                 (5,682,060)    (104,988)    (15,365)
    Effect of exchange rate changes on
     cash                                 (2,816,878)     889,257     130,143
    Net increase in cash                  (6,503,614) (18,262,753) (2,672,767)
    Cash and cash equivalents at
     beginning of period                  67,227,348   60,723,734   8,886,964
    Cash and cash equivalents at end of
     period                               60,723,734   42,460,982   6,214,196
    Supplemental cash flow information
    Interest paid                            542,813      110,484      16,169

BEIJING, April 27 /PRNewswire-Asia/ -- eFuture Information Technology Inc. (Nasdaq: EFUT, the "Company", or "eFuture"), a leading provider of software and services in China's rapidly growing retail and consumer goods industries, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2008.

    Fourth Quarter of 2008 Financial Highlights:
    -- Total revenues increased 47.8% year-over-year to RMB71.7 million
       (US$10.5 million).
       -- Revenue from software license sales increased 70.2% year-over-year
          to RMB31.8 million (US$4.7 million).
       -- Revenue from hardware sales increased 100.5% year-over-year to
          RMB19.7 million (US$2.9 million).
       -- Service fee income increased 1.0% to RMB20.2 million (US$3.0
          million).
    -- Gross profit increased 59.1% year-over-year to RMB33.6 million (US$4.9
       million).  Gross margin was 46.8%, compared to 43.5% in the fourth
       quarter of 2007.
    -- Operating income increased 86.1% year-over-year to RMB12.7 million
       (US$1.9 million).
    -- Net income increased 136.9% year-over-year to RMB9.1 million (US$1.3
       million).
    -- Diluted net income per share was RMB2.7 (US$0.4), as compared to net
       loss per share of RMB8.18 the fourth quarter of 2007.
    -- Operating cashflow was RMB31.7 million (US$4.7 million).
    -- Adjusted net income (non-GAAP) increased 17.1% year-over-year to
       RMB20.6 million (US$3.0 million).
    -- Non-GAAP adjusted diluted earnings per share were RMB6.08 (US$0.89).

    Full Year 2008 Financial Highlights:
    -- Total revenues increased 64.7% year-over-year to RMB138.5 million
       (US$20.3 million).
       -- Revenue from software license sales increased 56.5% year-over-year
          to RMB64.7 million (US$9.5 million).
       -- Revenue from hardware sales increased 64.6% year-over-year to
          RMB26.7 million (US$3.9 million).
       -- Service fee income increased 77.8% to RMB47.1 million (US$6.9
          million).
     -- Gross profit increased 73.9% year-over-year to RMB66.2 million (US$9.7
        million).  Gross margin was 47.8%, compared to 45.3% in 2007.
     -- Operating profit was RMB2.7 million (US$0.4 million), as compared to
        an operating profit of RMB6.9 million (US$1.0 million) in 2007.
     -- Net loss increased 9.6% year-over-year to RMB30.1 million (US$4.4
        million).
     -- Diluted loss per share was RMB9.76 (US$1.43).
     -- Operating cash flow as of December 31 2008 increased 71.2% year-over-
        year to RMB31.7 million (US$4.6 million).
     -- Cash and cash equivalents as of December 31, 2008 was RMB60.7 million
        (US$8.9 million).
     -- Adjusted net income (non-GAAP) was RMB15.3 million (US$2.2 million), a
        decrease of 13.2% from 2007.
     -- Non-GAAP adjusted diluted earnings per share were RMB4.9 (US$0.72).

"We are very pleased to report a great quarter with strong revenue growth, solid margin expansion and steady progress across a wide range of strategic and tactical initiatives in 2008," said Mr. Adam Yan, Chairman and Chief Executive Officer of eFuture. "While our full year reported bottom-line results were negatively impacted by expenses related to a US$4 million convertible note, our underlying operations performed very well in the face of significant macroeconomic headwinds. This reflects our continued execution, focused growth strategy consisting of both organic and acquisitive initiatives, affordable and flexible suite of solutions, a large and diversified install base, and the continued resilience of China's retail and consumer goods industry. I am pleased to report that we have made substantial progress and important developments on several key fronts.

"As part of our organic growth strategy, the initiative to organize our operations into seven strategic business units has already yielded positive results, helping to streamline our operations and allowing us to leverage our capabilities to better serve clients and accelerate growth. The result has been revenue increases across all business segments, a commendable achievement, and as a testament to our ability to deepen relationships with existing customers, software licensing revenues from current clients increased by 117%.

"Furthermore, we solidified our core enterprise software business and forged into new frontiers of eService, including our B2B service and SaaS (Software-as-a-Service) service for supply chain management and B2C eShopping. Our SaaS strategy remains a key near- to long-term growth driver, and this service began to make a positive contribution in 2008, representing 8.5% of our total full year revenues.

"On the M&A front, our acquisition of Proadvancer has provided us with market leadership and significant share gains in China's logistics market, allowing us to form a total front-end supply chain management solution. Additionally, we increased our stake in Wangku from 20% to 51%. Together, these deals comprised 18.4% of our revenue in 2008. Going forward, we will continue to seek further growth opportunities through mergers and acquisitions to diversify our product and service offerings.

"Looking ahead, we intend to continue to focus on executing our growth strategy by investing in technology and business model innovations, expanding our client base within tier-2 and tier-3 cities in China, and actively pursuing domestic and international clients. Alongside each of these initiatives, we will strive to maximize our operational efficiency and enhance earnings growth to increase long-term shareholder returns."

Full Year 2008 Operational Highlights:

By solidifying eFuture's core enterprise software business, growing value-added service revenues, and strengthening eFuture's eService offerings and capabilities, the Company established a diverse platform designed to enable it to expand its market share and to generate consistent revenue flows.

Core Business (Software License, Hardware, and Service Fee excluding eServices)

In 2008, eFuture re-aligned its software business into seven vertical strategic business units ("SBU") in order to better service the various market segments and to enhance customer satisfactions. The new SBUs are as follows:

    -- Department Store and Shopping Mall
    -- Grocery and Supermarket
    -- Specialty Retail
    -- Fast-Moving Consumer Goods
    -- Logistics
    -- Small-to-Medium Business
    -- Key Accounts

In 2008, software licensing revenue from existing customers contributed 61.9% of the total software revenues and 28.9% of total revenues, an increase of 17% and 7% over the 44.6% and 21.9% in 2007, respectively.

eService Business

eFuture's eService strategy remains a key near- to long-term growth driver and began to make positive contributions in 2008, representing 8.5% of total revenues for the year.

In March 2008, eFuture and IBM entered into a strategic partnership to launch a Software-as-a-Service platform ( http://www.bfuture.com.cn ) for the retail distribution industry in China. Thus far, this initiative has brought 2,000 of Wangfujing Group's suppliers onto the platform, allowing them to exchange business information, arrange payments online and access purchase orders, returns, payment status, inventory levels and analysis of sales data.

IBM China Research Lab and eFuture began their collaboration in 2005 with the goal of combining IBM's integrated infrastructure and platforms with eFuture's expertise and best practices in supply chain management software. This partnership is geared towards strategically targeting retailers and their suppliers to greatly improve their productivity, shorten the credit cycle, reduce risks and facilitate the growth of both demand and supply sides of the businesses. It can help retailers reduce their investment in IT systems, which in turn will help China's distribution sector combat the current financial crisis. Further collaboration with IBM has also positioned eFuture as the partner of choice for leading global technology companies.

Major Wins

In 2008, eFuture signed a total of 837 contracts valued at RMB138 million with leading global and domestic companies operating in China's retail and consumer goods industry. The top ten customers contributed a total contract value of RMB32.3 million, representing about 23.5% of the total contract value.

Research & Development

In 2008, the Company expanded its product portfolio by launching eFuture ONE Congou SOA and eFuture ONE CRM. These solutions further enhanced eFuture's open technology platform, characterized by leading technological innovation, first to market next generation SOA architecture, industry-leading functionality and seamless integration with eFuture's existing products.

eFuture and IBM China Research Lab also jointly developed eFuture ONE SCM SaaS Platform based on IBM's Blue Cloud computing architecture.

Mergers & Acquisitions

eFuture's acquisition of Proadvancer resulted in significant share gains in China's logistics market, enabling the Company to form a total front-end supply chain management solution and further solidifying eFuture's market leadership. Additionally, eFuture increased its stake in Wangku from 20% to 51%, in order to further expand its eService business initiatives. Together, these deals contributed 18.4% of eFuture's revenue in 2008.

In addition to the completion of these acquisitions, eFuture grew organically in 2008. As of December 31, 2008, the Company has a total of 601 employees, compared to 588 employees as of December 31, 2007.

Convertible Notes

The Company converted US$5 million notes in 2007 and US$4 million notes in 2008, representing a total conversion of 90%. The expenses related to converting the remaining 10% will be US$0.9 million.

Fourth Quarter and Full Year 2008 Financial Results

Revenue

Revenue for the fourth quarter of 2008 increased 47.8% to RMB71.7 million (US$10.5 million) from RMB48.5 million in the fourth quarter of 2007.

Total fiscal year 2008 revenue increased 64.7% to RMB138.5 million (US$20.3 million) from RMB84.1 million in 2007. Service fee income increased to 34.0% of total revenue as compared to 31.5% in 2007, further enhancing the Company's recurring revenue stream and improving the overall revenue mix.

These increases are primarily attributable to the significant growth across all product lines including software license sales driven by the re-alignment of the software business into seven vertical strategic business units and improved operating efficiency.

    Revenue Breakdown

                          2007                         2008
                        Q4     FY          Q4                  FY
                       RMB    RMB    RMB    USD    Y-o-Y    RMB    USD   Y-o-Y
                      '000   '000   '000   '000   Change   '000   '000  change
    Software license
     sales           18,703 41,360 31,830  4,665   70.2%  64,709  9,485  56.5%
    Hardware sales    9,817 16,198 19,685  2,885 100.50%  26,661  3,907  64.6%
    Service fee
     income          19,990 26,512 20,181  2,958    1.0%  47,131  6,908  77.8%
            Total    48,510 84,070 71,696 10,508   47.8% 138,501 20,301  64.7%

Cost of Revenues

The cost of revenue for the fourth quarter of 2008 increased 39.1% to RMB38.1 million (US$5.6 million) from RMB27.4 million in the fourth quarter of 2007.

The cost of revenue for fiscal year 2008 increased 57.2% to RMB72.3 million (US$10.6 million) from RMB46.0 million in 2007.

    Cost of Revenues Breakdown

                           2007                        2008
                        Q4     FY           Q4                   FY
                        RMB    RMB    RMB    USD   Y-o-Y   RMB    USD   Y-o-Y
                       '000   '000   '000   '000  Change  '000   '000  change
    Cost of software
     license sales     8,364 15,413  8,819  1,293   5.4% 18,017  2,641  16.9%
    Cost of hardware
     sales             7,181 12,587 17,486  2,563 143.5% 23,266  3,410  84.8%
    Cost of service
     see               4,950  6,857  8,476  1,242  71.2% 15,866  2,326 131.4%
    Amortization of
     acquired
     technology        6,002  8,231  2,410    353 -59.8% 11,512  1,687  39.9%
    Amortization of
     software costs      904  2,889    929    136   2.8%  3,609    529  24.9%
             Total    27,402 45,978 37,191  5,587  35.7% 72,270 10,593  57.2%

The increase in cost of revenue was primarily attributable to a proportionate increase in sales volume and, to a lesser extent, cost in hardware sales along with an increase in service income fees. The increases in service income fees were affected by several factors:

    1. Increased senior technical personnel on major accounts to explore
       service expansion opportunities and further enhanced monetization.
       eFuture devoted its senior technical personnel to its major accounts
       according to the customers' 3 years programming needs which will
       deliver more value to these customers' future operation.  However,
       these high-end configurations and higher salaries of these senior
       personnel added extra expenses to eFuture's projects.

    2. Increased marketing efforts on major accounts to further explore
       customer's potential needs in their IT operating plans.

Gross Profit

Fourth quarter of 2008 gross profit increased 59.1% to RMB33.6 million (US$4.9 million) from RMB21.1 million in the fourth quarter of 2007.

Consolidated gross margin for the fourth quarter of 2008 was 46.8% compared to 43.9% in the fourth quarter of 2007 and 47.9% in the third quarter of 2008. These increases were primarily attributable to increases in revenues and decreases in amortization of acquired intangibles.

2008 gross profit demonstrated substantial growth, increasing 73.9% to RMB66.2 million (US$9.7 million) for the fiscal year 2008 from RMB38.1 million in 2007.

Consolidated gross margin for 2008 further expanded to 47.8%, up from 45.3% in 2007.

Operating Expenses

Research and development expenses for the fourth quarter of 2008 were RMB5.0 million (US$0.7 million), or 7.0% of total revenues, compared to 0.4% of total revenues in the fourth quarter of 2007 and 0.8% in the third quarter of 2008.

Research and development expenses in 2008 were RMB5.7 million (US$0.8 million), or 4.1% of total revenues, compared to 0.5% in 2007.

Both the year-over-year and sequential increases in research and development expenses are mainly due to our larger expenditures in software integration and upgrading. Management believes that these efforts to integrate multiple versions of similar software into full-featured single software versions will reduce eFuture's R&D costs in the long term and reduce the future software implementation costs.

General and administrative expenses for the fourth quarter of 2008 were RMB11.0 million (US$1.6 million), or 15.4% of total revenues, compared to 20.1% in the fourth quarter of 2007 and 25.1% in the third quarter of 2008.

General and administrative expenses in 2008 were RMB37.8 million (US$5.5 million), or 27.30% of total revenues, compared to 19.4% in 2007.

The year-over-year increase was mainly due to a RMB1.5 million increase in salaries and a RMB3.0 million increase in the maintenance costs of 8 new branches in 2008. In addition, the expenses associated with the compliance of auditing and Sarbanes-Oxley Act compliance contributed RMB1.6 million to the general and administration expenses.

Selling and distribution expenses for the fourth quarter of 2008 were RMB4.8 million (US$0.7 million), or 6.7% of total revenues, compared to 8.2% in the fourth quarter 2007 and 23.1% in the third quarter of 2008.

Selling expenses in 2008 were RMB20.1 million (US$2.9 million), or 14.5% of total revenues, as compared to 14.0% in 2007. The year-over year increase was mainly due to a proportionate increase in sales volume in 2008.

Total share-based compensation expenses in 2008 were RMB2.7 million (US$0.4 million).

Operating Income/Loss

Operating profit in the fourth quarter of 2008 increased 86.1% to RMB12.7 million (US$1.9 million) from RMB6.8 million in the fourth quarter of 2007.

Operating margin was 17.7% in the fourth quarter of 2008, compared to 15.1% in the fourth quarter 2007. 2008 operating profit was RMB2.75 million (US$0.4 million), as compared to an operating profit of RMB6.9 million in 2007. The decreased operating profit primarily resulted from the increased R&D expenses and increased G&A expenses.

Net Income/Loss and EBITDA

As a result of the foregoing, fourth quarter of 2008 net income was RMB9.1 million (US$1.3 million) compared to net loss of RMB25.6 million in the fourth quarter of 2007. Net margins were 12.6% in the fourth quarter 2008. Net loss for the year ended December 31, 2008 was RMB30.1 million (US$4.4 million), compared to RMB27.5 million in 2007. These losses were largely due to the RMB20.5 million expense related to the conversion of the convertible notes.

Basic and diluted losses per share in the fourth quarter of 2008 were RMB2.7 (US$0.4) and RMB2.67 (US$0.39), respectively. 2008 basic and diluted losses per share were RMB9.76 (US$1.43) and RMB9.76 (US$1.43), respectively.

Adjusted net income (non-GAAP) for the fourth quarter was RMB20.6 million (US$3.0 million), an increase of 17.1% from the fourth quarter of 2007. Adjusted net income (non-GAAP) for 2008 was RMB15.3 million (US$2.2 million), a decrease of 13.2% from 2007.

Fourth quarter 2008 adjusted non-GAAP diluted earnings per share was RMB6.08 (US$0.89). 2008 adjusted non-GAAP diluted earnings per share was RMB4.9 (US$0.72).

EBITDA (non-GAAP) for the fourth quarter of 2008 was RMB16.8 million (US$2.5 million), a decrease of 20.9% from the fourth quarter of 2007. 2008 EBITDA (non-GAAP) was RMB21.5 million (US$3.1 million), an increase of 1.2% from 2007.

Balance Sheet and Cash Flow

In 2008, net cash generated from operating activities was RMB31.7 million (US$4.6 million), while net cash used in capital expenditures was RMB30.0 million (US$4.3 million).

As of December 31, 2008, cash and cash equivalents decreased 9.7% year-over-year to RMB60.7 million from RMB67.2 million in 2007, mainly due to the expenses related to the conversion of US$4 million convertible notes, as well as payment for the acquisitions of Royalstone and Proadvancer in 2008.

Total accounts receivable as of December 31, 2008 increased 10.8% to RMB18.2 million (US$2.7 million) from RMB16.4 million as of December 31, 2007, mainly attributable to increases in total revenue.

Inventories as of December 31, 2008 increased 73.4% to RMB10.0 million (US$1.5 million) from RMB5.7 million as of December 31, 2007. This increase was mainly attributable to the working in progress projects of RMB45 million that have not reached the revenue recognition point.

2009 Business Outlook

Industry and Market Outlook

Management expects macroeconomic factors, such as retail sales of consumer goods and IT spending, to increase at a healthy rate for 2009. For the first quarter of 2009, total retail sales of consumer goods reached RMB2,940 billion (US$430.9 billion), an increase of 15% over the prior year. eFuture expects that it remains in a strong position to compete in the supply chain management sector.

    Top line Growth Drivers
    -- As of December 31, 2008, the Company's unrecognized revenue base was
       US$6.5 million, including US$3.6 million of software license income and
       US$2.7 million of service fee income for 2009.
    -- Increasing demand for value-added service such as maintenance and
       outsourcing, and the upward trend in license revenue from existing
       customers.
    -- Solid demand from department stores, supermarkets, and key customer
       accounts under challenging economic conditions.
    -- Deepening penetration and expanding market share via eFuture's plan to
       further develop its B2B services and software-as-a-service businesses
       (including Supply Chain Management and B2Cstore eShopping) by
       leveraging the Company's relationships with over 1,000 retailers, their
       base of over 13,000 stores and over 900,000 suppliers as well as nearly
       80 million end consumers.

Channel Expansion Initiatives

Currently, 50% of eFuture's revenue is derived from China's three mega-cities-Beijing, Shanghai and Guangzhou-while 80% of total revenue is derived from eight Tier 1 cities (including the mega cities) in China. However, the continued expansion of many retailers, including current eFuture customers, into China's Tier 2 and Tier 3 cities presents a significant opportunity to gain additional market shares in these growing markets. As such, one of the Company's key initiatives in 2009 is to enhance penetration into Tier 2 and Tier 3 cities, by investing approximately RMB7.5 million in order to increase the coverage of its sales and distribution network from 10 up to 15 provinces in China.

2009 Guidance

In 2009, eFuture plans to focus upon continued execution on its growth strategy, which consists of a combined organic and acquisitive approach. eFuture will continue to solidify its core enterprise software business and forge into new frontiers of eService and investing.

eFuture expects its 2009 total revenues to be in the range of approximately US$27 million to US$28 million, representing annual growth of 33% to 38% over 2008. Adjusted EBITDA (non-GAAP) is expected to be in the range of approximately US$4.9 million to US$5.9 million. This forecast is a current and preliminary view and is subject to change.

Conference Call Information

eFuture's management will host a conference call on Monday, April 27, 2009 at 5:30 pm (Pacific) / 8:30 pm (Eastern) / Tuesday, April 28, 8:30 am (China) to discuss its fourth quarter and full year 2008 financial results and recent business activity. The conference call may be accessed by calling:

    United States toll free                +1-866-519-4004
    China, toll free                       800-819-0121
    China, toll                            400-620-8038
    United Kingdom toll free               0808-234-6646
    Hong Kong toll free                    800-933-053
    Passcode                               eFuture

    Please dial-in 10 minutes before the call is scheduled to begin.

A replay of the conference call may be accessed by phone at the following numbers until Monday, May 4, 2009:

    United States toll free                 +1-866-214-5335
    China North                             10-800-714-0386
    China South                             10-800-140-0386
    United Kingdom toll free                0800-731-7846
    Hong Kong toll free                     800-901-596

    Passcode                                #92982918

Additionally, a live and archived webcast of the conference call will be available on the investor relations section of eFuture's website at http://www.e-future.com.cn/ENG/newsh... .

Currency Convenience Translation

For the convenience of readers, certain RMB amounts have been translated into US dollars at the rate of RMB6.8225 to US$1.00, the noon buying rate for US dollars in effect on December 31, 2008 for cable transfers of RMB per US dollar as certified for customs purposes by the Federal Reserve Bank of New York.

Use of Non-GAAP Financial Measures

To supplement eFuture's unaudited consolidated financial results presented in accordance with U.S. GAAP, eFuture uses the following non-GAAP measures defined as non-GAAP financial measures by the SEC: adjusted EBITDA excluding amortization of acquired software technology, amortization of intangibles, share-based compensation expenses, depreciation, adjusted net income excluding amortization of acquired software technology, amortization of intangibles, share-based compensation expenses and accretion on convertible notes, adjusted basic and diluted earnings per share excluding amortization of acquired software technology, amortization of intangibles, share-based compensation expenses and accretion on convertible notes.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

eFuture believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding expenses that may not be indicative of its operating performance from a cash perspective or be indicative of its operating performance. eFuture believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to eFuture's historical performance and liquidity. eFuture computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. The accompanying paragraphs have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

eFuture's management also believes that EBITDA, defined as earnings before interest, income tax expense, depreciation and amortization is a useful financial metric to assess its operating and financial performance before the impact of investing and financing transactions and income taxes. In addition, eFuture's management believes that EBITDA is widely used by other companies in the software industry and may be used by investors as a measure of its financial performance. Given the significant investments that eFuture has made in property, equipment, depreciation and amortization expense comprises a meaningful portion of the Company's cost structure. eFuture's management believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures. The presentation of EBITDA should not be construed as an indication that the Company's future results will be unaffected by other charges and gains eFuture considers to be outside the ordinary course of its business.

The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets, income tax expense, interest expense and interest income have been and will be incurred and are not reflected in the presentation of EBITDA. Further, share-based compensation expenses have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of eFuture's financial results. The term EBITDA or adjusted EBITDA is not defined under U.S. GAAP, and EBITDA or adjusted EBITDA is not a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing eFuture's operating and financial performance, you should not consider this data in isolation or as a substitute for its net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company's EBITDA and adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as eFuture does.

Statement Regarding Unaudited Financial Information

The unaudited financial information set forth above is subject to adjustments that may be identified when audit work is performed on the Company's year-end financial statements, which could result in significant differences from this unaudited financial information.

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (NASDAQ: EFUT - News) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain(from factory to consumer) market, especially in the retail and fast moving consumer goods industries. eFuture currently serves over 15 Fortune 500 companies, over 1,000 retailers and over 5,000 suppliers operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e-future.com.cn/

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, 2008 financial outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward-looking statements. eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to second parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the Company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the Company's ability to control expenses and maintain profit margins; the Company's ability to hire, train and retain qualified managerial and other employees; the Company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the performance of third parties under contracts with the Company; the expected growth of the Chinese economy software market in retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of April 27, 2009, and the Company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For more information, please contact:

    Investor Contact:
     Troe Wen, Company Secretary
     eFuture Information Technology Inc.
     Tel:   +86... x8804
     Email: ir@e-future.com.cn

    Investor Relations (US):
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-...
     Email: eFuture@Taylor-Rafferty.com

    Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: eFuture@Taylor-Rafferty.com

    Media Contact:
     Jason Marshall
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: eFuture@Taylor-Rafferty.com


                       -- FINANCIAL TABLES TO FOLLOW --


             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                   Chinese Yuan (Renminbi)  U.S. Dollars
                                         December 31,        December 31,
                                        2007       2008          2008
                                     (Audited)  (Unaudited)  (Unaudited)
    ASSETS
    Current assets
    Cash and cash
     equivalents                    67,227,348   60,723,734    8,900,511
    Trade receivables, less
     allowance for doubtful
     accounts of RMB2,109,910,
     RMB4,695,898,and
     RMB7,539,546 respectively      16,409,333   18,185,221    2,665,478
    Refundable value added
     tax                             3,691,035    2,859,018      419,057
    Deposits                           156,695           --           --
    Advances to employees            3,576,947    2,978,844      436,621
    Advances to suppliers              657,724      847,831      124,270
    Other receivables                3,576,965      852,191      124,909
    Prepaid expenses                   862,653    1,177,396      172,575
    Inventory                        5,749,951   10,406,711    1,525,352
    Total current assets           101,908,651   98,030,946   14,368,772

    Non-current assets
    Long-term investments            5,460,301      654,192       95,887
    Deferred loan costs,
     net of RMB6,700,671 of
     amortization                    4,847,633      642,744       94,209
    Deferred assets                    172,083    2,809,201      411,755
    Property and equipment,
     net of accumulated
     depreciation of
     RMB4,690,856,
     RMB5,191,489, and
     RMB5,858,293
     respectively                    2,065,040    3,202,286      469,371
    Intangible assets, net
     of accumulated
     amortization of
     RMB8,678,751,
     RMB19,799,245 and
     RMB31,481,989
     respectively                   47,045,110   59,261,346    8,686,163
    Goodwill                        46,814,929   63,506,496    9,308,391
    Total non-current
     assets                        106,405,096  130,076,265   19,065,777

    Total assets                   208,313,747  228,107,211   33,434,549

    LIABILITIES AND
     SHAREHOLDERS' EQUITY
    Current liabilities
    Trade accounts payable           3,845,873    8,393,534    1,230,272
    Other payable                    2,124,527    3,574,142      523,876
    Accrued expenses                 3,395,790    6,946,751    1,018,212
    Accrued interest                   278,420           --           --
    Taxes payable                    7,696,531    8,124,009    1,190,767
    Deferred Revenues                             8,073,981    1,183,434
    Deferred Tax                     5,282,076    4,691,336      687,627
    Advances from customers         13,025,978   16,502,902    2,418,894
    Royalstone acquisition
     obligation, current
     portion                        16,722,213    6,405,610      938,895
    Health Filed
     acquisition obligation          3,300,000      592,948       86,911
    Proadvancer System
     acquisition obligation                 --   14,533,644    2,130,252
    Make-whole obligation,
     current portion                 1,164,116      426,734       62,548
     payable, current
      portion                        3,648,825      899,826      131,891
    Total current
     liabilities                    60,484,349   79,165,416   11,603,579

    Long-term liabilities
    Royalstone acquisition
     obligation, net of
     current portion                6,093,683           --            --
    Make-whole obligation,
     net of current portion         9,290,082      718,000       105,240
    12% RMB75,108,000
     ($10,000,000)
     convertible note
     payable, net of
     RMB53,379,624                        --            --            --
      unamortized discount
       based on an imputed
       interest rate of
       28.9%, net of                      --            --            --
      current portion              6,770,666        64,998         9,527
    Minority shareholder
     interests                       (91,499)    4,318,148       632,927
    Total long-term
     liabilities                  22,062,932     5,101,146       747,694

    Shareholders' equity
    Ordinary shares,
     $0.0756 U.S. dollars
     (RMB 0.6257) par
     value; 6,613,756
     authorized; 2,633,500
     shares and 2,633,500
     shares outstanding
     (2,833,580 shares pro
     forma), respectively          1,811,589      2,038,631      298,810
    Additional paid-in
     capital                     165,678,074    222,849,091   32,663,846
    Statutory reserves             3,084,020      3,084,020      452,037
    Accumulated foreign
     currency translation
     adjustment                           --     (8,231,428)  (1,206,512)
    Accumulated deficit          (44,807,216)   (75,899,664) (11,124,905)
    Total shareholders'
     equity                      125,766,467    143,840,650   21,083,276

    Total liabilities and
     shareholders' equity        208,313,747    228,107,211   33,434,549



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                   CONDENSED CONSOLIDATED INCOME STATEMENTS

                           Chinese Yuan (Renminbi)   U.S. Dollars
                                2007       2008         2008
                            (Audited)   (Unaudited)  (Unaudited)
     Revenues
     Software sales         41,360,165   64,709,268   9,484,686
     Hardware sales         16,198,402   26,661,095   3,907,819
     Service fee income     26,511,794   47,131,117   6,908,189
     Total Revenues         84,070,361  138,501,480  20,300,693

     Cost of revenues
     Cost of software       15,412,948   18,017,073   2,640,832
     Cost of hardware       12,587,418   23,265,895   3,410,171
     Cost of service fee
      income                 6,857,161   15,866,431   2,325,604
     Amortization of
      acquired technology    8,231,375   11,511,558   1,687,293
     Amortization of
      software costs         2,889,118    3,609,186     529,012
     Total Cost of Revenue  45,978,020   72,270,144  10,592,912

     Gross Profit           38,092,341   66,231,337   9,707,781

     Expenses
     Research and
      development              436,923    5,666,901     830,619
     General and
      administrative        18,957,385   37,844,196   5,546,969
     Selling and
      distribution
      expenses              11,755,517   20,059,398   2,940,183
     Total Expenses         31,149,825   63,570,495   9,317,771

     Profit from
      operations             6,942,516    2,660,842     390,010

     Interest income         3,533,326    1,418,040     207,848
     Interest expense         (841,277)    (542,813)    (79,562)
     Amortization of
      discount on notes
      payable              (31,320,836) (27,201,387) (3,987,012)
     Amortization of loan
      costs                 (6,610,234)  (3,637,607)   (533,178)
     Income (loss) on
      investments              985,085     (623,266)    (91,355)
     Foreign currency
      exchange loss           (201,847)      18,393       2,696
     Outside business
      receives                      --       51,751       7,585
     Outside business
      disburses                     --   (1,024,572)   (150,176)
     Impairment of
      intangible assets             --   (2,014,634)   (295,293)
     Income tax expense             --     (340,184)    (49,862)
     Minority interest          32,520    1,102,973     161,667
     Net loss              (27,480,747) (30,132,466) (4,416,631)

     Earnings per ordinary
      share
     Basic                      (10.23)       (9.76)      (1.43)
     Diluted                    (10.23)       (9.76)      (1.43)



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                       NON-GAAP MEASURES OF PERFORMANCE

                                     December
                                      31,2007       December 31,2008
                                        RMB          RMB         US$
                                    (Unaudited)  (Unaudited) (Unaudited)

    NON-GAAP OPERATING INCOME (LOSS)
     AND ADJUSTED EBITDA

    Operating income (loss) (GAAP
     Basis)                          6,942,516    2,660,842     390,010

    Adjustments for non-GAAP
     measures of performance:
    Add back amortization of
     acquired software technology    8,231,375   11,511,558   1,687,293
    Add back amortization of
     intangibles                     2,891,118    3,609,186     529,012
    Add back share-based
     compensation expenses           2,663,105    3,109,903     455,830
    Adjusted non-GAAP operating
     income                         20,728,114   20,891,490   3,062,145
    Add back depreciation              500,633      586,880      86,021

    Adjusted EBITDA (Earnings
     before interest, taxes,
     depreciation and
     amortization)                  21,228,747   21,478,370   3,148,167

    NON-GAAP OPERATING INCOME
     (LOSS) AND ADJUSTED EBITDA,
     as a percentage of revenue

    Operating income (loss) (GAAP
     BASIS)                                 8%           2%          2%

    Adjustments for non-GAAP
     measures of performance:
    Amortization of acquired
     software technology                   10%           8%          8%
    Amortization of intangibles             3%           3%          3%
    Share-based compensation
     expenses                               3%           2%          2%
    Adjusted non-GAAP operating
     income                                25%          15%         15%
    Depreciation                          0.6%         0.4%        0.4%

    Adjusted EBITDA (Earnings
     before interest, taxes,
     depreciation and
     amortization)                         25%          16%         16%

    NON-GAAP EARNINGS PER SHARE
    Net Income(Loss)               (27,480,747) (30,132,466) (4,416,631)
    Amortization of acquired
     software technology             8,231,375   11,511,558   1,687,293
    Amortization of intangibles      2,891,118    3,609,186     529,012
    Accretion on convertible notes  31,320,836   27,201,387   3,987,012
    Share-based compensation
     expenses                        2,663,105    3,109,903     455,830
    Adjusted Net income             17,625,687   15,299,569   2,242,516

    Adjusted non-GAAP diluted
     earnings per share                   5.88         4.90        0.72
    Shares used to compute non-
     GAAP diluted earnings per
     share                           2,997,921    3,124,464   3,124,464



             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                   CONDENSED CONSOLIDATED INCOME STATEMENTS

                                     Three Months Ended
                       December     September
                        31,2007      30,2008      December 31,2008
                          RMB          RMB        RMB          US$
                     (Unaudited)  (Unaudited) (Unaudited) (Unaudited)
    Revenues
    Software sales    18,702,618   16,602,397  31,830,223   4,665,478
    Hardware sales     9,816,610    2,650,771  19,685,341   2,885,356
    Service fee
     income           19,990,060    8,103,952  20,180,605   2,957,949
    Total
     Revenues         48,509,288   27,357,120  71,696,169  10,508,783

    Cost of revenues
    Cost of software   8,363,521    5,312,887   8,819,265   1,292,673
    Cost of hardware   7,181,113    2,025,567  17,486,295   2,563,033
    Cost of service
     fee income        4,950,478    2,698,429   8,475,719   1,242,319
    Amortization
     of acquired
     technology        6,002,248    3,336,837   2,409,791     353,212
    Amortization of
     software costs      904,236      891,606     929,118     136,184
    Total Cost
     of Revenue       27,401,596   14,265,327  38,120,187   5,587,422

    Gross Profit      21,107,692   13,091,793  33,575,982   4,921,360

    Expenses
    Research and
     development         194,159      231,345   5,044,572     739,402
    General and
     administrative   10,097,655    6,858,594  11,020,454   1,615,310
    Selling and
     distribution
     expenses          3,986,341    6,324,257   4,804,225     704,174
    Total Expenses    14,278,155   13,414,196  20,869,250   3,058,886

    Profit from
     operations        6,829,536     (322,403) 12,706,732   1,862,474

    Interest income      764,491      353,665      70,936      10,397
    Interest expense     444,949   (8,114,896)  8,437,618   1,236,734
    Amortization of
     discount on
     notes payable   (28,208,015) (18,385,813) (7,469,551) (1,094,841)
    Amortization of
     loan costs       (5,373,092)  (3,415,298)    298,644      43,773
    Income (loss)
     on investments      844,938     (130,681)     17,754       2,602
    Foreign currency
     exchange loss        99,738     (488,662)    566,316      83,007
    Outside business
     receives                 --          528      27,824       4,078
    Outside business
     disburses                --       (7,827)   (855,746)   (125,430)
    Impairment of
     intangible assets        --           --  (2,014,634)   (295,293)
    Income tax
     expense                  --           --    (199,490)    (29,240)
    Minority interest     32,520    1,602,385  (2,522,638)   (369,753)
    Net Income
     (loss)          (24,564,935) (28,909,001)  9,063,764   1,328,511

    Earnings per
     ordinary share
    Basic                  (9.14)       (9.21)       2.70        0.40
    Diluted                (9.14)       (9.21)       2.67        0.39




             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
                       NON-GAAP MEASURES OF PERFORMANCE

                               December 31,  September 30,    December 31,
                                  2007          2008             2008
                                   RMB           RMB        RMB         US$
                               (Unaudited)  (Unaudited) (Unaudited) (Unaudited)
    NON-GAAP OPERATING INCOME
     (LOSS) AND ADJUSTED EBITDA

    Operating income (loss)
    (GAAP Basis)                 6,942,516    (322,403) 12,706,732   1,862,474

    Adjustments for non-GAAP
     measures of performance:
    Add back
     amortization of
     acquired software
     technology                  8,231,375    3,336,837  2,409,791     353,212
    Add back
     amortization of
     intangibles                 2,891,118      891,606    929,118     136,184
    Add back share-
     based compensation
     expenses                    2,663,105      763,234    765,657     112,225
    Adjusted non-GAAP
     operating income           20,728,114    4,669,274 16,811,298   2,464,095
    Add back
     depreciation                  500,633      666,804    (14,765)     (2,164)

    Adjusted EBITDA
     (Earnings before
     interest, taxes,
     depreciation and
     amortization)              21,228,747    5,336,078  16,796,532  2,461,932

    NON-GAAP OPERATING
     INCOME  (LOSS) AND
     ADJUSTED EBITDA,
     as a percentage
     of revenue

    Operating income (loss)
    (GAAP BASIS)                        8%          -1%         18%        18%

    Adjustments for non-GAAP
     measures of performance:
    Amortization of
     acquired software
     technology                        10%          12%          3%         3%
    Amortization of
     intangibles                        3%           3%          1%         1%
    Share-based
     compensation
     expenses                           3%           3%          1%         1%
    Adjusted non-GAAP
     operating income                  25%          17%         23%        23%
    Depreciation                      0.6%           2%      -0.02%     -0.02%

    Adjusted EBITDA
     (Earnings before
     interest, taxes,
     depreciation and
     amortization)                     25%          20%         23%        23%

    NON-GAAP EARNINGS PER
    SHARE

    Net Income(Loss)           (27,480,747) (28,909,001)  9,063,764  1,328,511
    Amortization of
     acquired software
     technology                  8,231,375    3,336,837   2,409,791    353,212
    Amortization of
     intangibles                 2,891,118      891,606     929,118    136,184
    Accretion on
     convertible notes          31,320,836   18,385,813   7,469,551  1,094,841
    Share-based
     compensation
     expenses                    2,663,105      763,234     765,657    112,225

    Adjusted Net income         17,625,687   (5,531,512) 20,637,882  3,024,973

    Adjusted non-GAAP
     diluted earnings
     per share                        5.88        (1.76)       6.08       0.89
    Shares used to compute
     non-GAAP diluted
     earnings per share          2,997,921    3,140,371   3,394,099  3,394,099




             E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                           Chinese Yuan (Renminbi)  U.S. Dollars
                          December 31, December 31, December 31,
                               2007         2008        2008
                            (Audited)   (Unaudited) (Unaudited)
     Cash flows from
      operating
      activities:
     Net income (loss)     (27,480,747) (30,132,466) (4,416,631)
     Adjustments to
      reconcile net income
      (loss) to net cash
      provided by (used
      in) operating
      activities:
     Depreciation              500,633      839,266     123,014
     Amortization of
      intangible assets     11,120,493   15,135,140   2,218,415
     Amortization of
      discount on notes
      payable               31,320,836   27,201,387   3,987,012
     Amortization of
      deferred loan costs    6,610,234    3,637,607     533,178
     Investment income        (985,085)          --          --
     Interest on notes
      payable contributed
      by shareholders               --           --          --
     Compensation expense
      for options issued
      to employees?          2,663,105    3,110,891     455,975
     Foreign Exchange Loss      93,622           --          --
     Minority interest         (32,520)  (1,102,973)   (161,667)
     Change in assets and
      liabilities:
     Accounts receivable   (10,352,076)  (1,881,912)   (275,839)
     Refundable value
      added tax             (1,220,094)     981,435     143,853
     Deposits                 (111,752)          --          --
     Advances to employees  (2,378,346)   1,131,108     165,791
     Advances to suppliers    (214,694)     246,730      36,164
     Other receivables         537,784   (2,792,879)   (409,363)
     Prepaid expenses         (291,548)    (125,414)    (18,382)
     Inventories               265,645   (4,656,761)   (682,559)
     Trade payables          1,827,696    4,162,135     610,060
     Other payables         (1,013,731)   3,070,343     450,032
     Accrued expenses          340,012    4,751,875     696,500
     Accrued interest          278,420           --          --
     Taxes payable           2,437,452     (560,508)    (82,156)
     Deferred Tax                   --           --          --
     Deferred revenue              -      3,650,622     535,086
     Decrease in accrued
      make-whole
      obligations            4,575,302           --          --
     Advances from
      customers                     --    1,511,210     221,504
     Other non-cash
      expenditures                  --    3,477,926     509,773
     Net cash provided by
      operating activities  18,490,641   31,654,762   4,639,760

     Cash flows from
      investing
      activities:
     Purchases of property
      and equipment           (527,743)  (1,384,465)   (202,926)
     Payments for software  (7,151,309)  (5,034,421)   (737,914)
     Long-term investments  (4,475,216)  (1,105,450)   (162,030)
     Payment to purchase
      net assets of
      Acquirees            (53,188,175) (22,135,101) (3,244,427)
     Loan to Guarantor              --           --          --
     Amounts due from a
      related party         (3,000,000)          --          --
     Net cash used in
      investing activities (68,342,443) (29,659,437) (4,347,298)

     Cash flows from
      financing
      activities:
     Issuance of ordinary
      shares for cash, net
      of offering costs
      paid                   1,060,992    3,614,764     529,830
     Issue convertible
      notes                 69,079,430           --          --
     Repayment of short
      term loan                     --           --          --
     Payment of make-whole
      obligation           (11,988,170)  (9,296,824) (1,362,671)
     Net cash provided by
      (used in) financing
      activities            58,152,252   (5,682,060)   (832,841)
     Effect of exchange
      rate changes on cash  (2,537,839)  (2,816,878)   (412,881)
     Net increase in cash    5,762,611   (6,503,614)   (953,260)
     Cash and cash
      equivalents at
      beginning of period   61,464,737   67,227,348   9,853,770
     Cash and cash
      equivalents at end
      of period             67,227,348   60,723,734   8,900,511
     Supplemental cash
      flow information
     Interest paid             510,282      542,813      79,562

The earnings press release will be available on the investor relations page of its website at http://www.e-future.com.cn/eng/newsl... .

Following the earnings announcement, eFuture's senior management will host a conference call on Monday, April 27, 2009 at 5:30 pm (Pacific) / 8:30 pm (Eastern) / Tuesday, April 28, 8:30 am (China) to discuss its fourth quarter and full year 2008 financial results and recent business activity. The conference call may be accessed by calling:

    United States toll free    +1-866-519-4004
    China, toll free           800-819-0121
    China, toll                400-620-8038
    United Kingdom toll free   0808-234-6646
    Hong Kong toll free        800-933-053
    Passcode                   eFuture

Please dial-in 10 minutes before the call is scheduled to begin.

A replay of the conference call may be accessed by phone at the following numbers until Monday, May 4, 2009:

    United States toll free    +1-866-214-5335
    China North                10-800-714-0386
    China South                10-800-140-0386
    United Kingdom toll free   0800-731-7846
    Hong Kong toll free        800-901-596
    Passcode                   #92982918

Additionally, a live and archived webcast of the conference call will be available on the investor relations section of eFuture's website at http://www.e-future.com.cn/ENG/newsh... .

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (NASDAQ: EFUT - News) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain market, especially in the retail and fast moving consumer goods industries. eFuture currently serves more than 1,000 clients, including over 15 Fortune 500 companies, over 1000 retailers and over 200 distributors operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has more than 600 employees and 20 branch offices across China. For more information about eFuture, please visit http://www.e-Future.com.cn/

    For further information, please contact:

    eFuture Information Technology Inc.
     Troe Wen, Company Secretary
     Tel:   +86-10-5165-0998 x8804
     Email: ir@e-future.com.cn

    Investor Relations (Hong Kong)
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: efuture@taylor.rafferty.com

    Investor Relations (US)
     Mahmoud Siddig
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: efuture@taylor-rafferty.com

Wangfujing Group, Beijing's largest retailer, implements new solution

BEIJING, Jan. 26 /PRNewswire-Asia/ -- eFuture Information Technology Inc. (Nasdaq: EFUT) ("eFuture"), a leading provider of software and services in China's retail and consumer goods industries, announced its collaboration with IBM (NYSE: IBM) to launch a Software-as-a-Service ("SaaS") solution for the retail distribution industry in China. The two companies have successfully completed the deployment of the solution at select Beijing Wangfujing Department Store Group ("Wangfujing Group") stores in Beijing, one of the largest retail groups in China.

This initiative has brought 2,000 of Wangfujing Group's suppliers onto the platform, allowing them to exchange business information, arrange payments online and access purchase orders, returns, payment status, inventory levels and analysis of sales data. When the system is fully operational throughout the Group's stores in 17 cities across China by the end of 2009, the Group will be able to share the supply chain information real time with approximately 20,000 suppliers.

"The ability to manage an efficient supply chain is a prerequisite for success in the retail industry," said Mr. Changxin Liu, Director of IT Department/Assistant to the President, Wangfujing Group. "Wangfujing Group now serves 10 million customers per day, and we believe the new supply chain system can enhance our Group's leadership in the China retail market."

China's retail market has been experiencing exponential growth in the last 20 years, and is forecasted to reach US$1.4 trillion by 2010 to become the world's second largest market. However, practices inherited from years ago - such as manual procurement, manual verification, paper-based statements and months-long settlement cycles - can no longer meet the needs of the new era and the rapid evolution of the market.

In the new economy, retailers are challenged with the demands of managing inventories more closely, increasing supply chain efficiencies, increasing labor productivity and controlling costs. The new SaaS Solution addresses all of these needs, and provides an effective and scalable solution for retailers to manage change in a dynamic environment.

The IBM and eFuture SaaS Solution is delivered through the Web to the authorized suppliers of the retail businesses. With just an Internet-connected terminal, an authorized supplier can log onto the system with designated username and password to handle all their business transactions from order processing to settlement, and monitor the transactions. Meanwhile, retailers can also monitor the entire process including orders, delivery, inventory and payment real time and in a completely transparent and automated manner.

"SaaS is one of the fastest growing segments of the IT industry because it provides companies of all sizes with access to the latest, innovative supply chain solutions delivered remotely via a subscription model," said Mr. Adam Yan, eFuture's chairman and chief executive officer. "Our retail software and industry expertise has been taken to the next level following our partnership with IBM's cutting-edge technologies."

IBM and eFuture began their collaboration since 2005 to develop software for China's retail industry. IBM integrated its SaaS infrastructure platform, designed and developed by IBM China Research Lab, with eFuture's industry solutions. The end-to-end SaaS Solution, running on WebSphere Application Server and DB2 database, is based on IBM's advanced SOA technology. The solution covers supply chain execution, task tracking and performance measurement. IBM is also responsible for the post-launch operation and maintenance service.

The SaaS solution helps retailers and their suppliers better synchronize and share information and analyze business data. This will greatly improve the productivity, shorten the credit cycle, reduce risks and facilitate the growth of both demand and supply sides of the businesses. It can help retailers reduce their investment in IT systems, which in turn will help China's distribution sector combat the current financial crisis. In addition, the automated and IT-based settlement system expedites cash collection to provide suppliers with more working capital and investment opportunities.

"This particular solution represents China's first Software-as-a-Service application," said Mr. David Cheng, vice president, General Business, IBM Greater China Group. "We selected eFuture to collaborate on our retail SaaS solution because we believe eFuture has the expertise and best practices in supply chain management software that, with IBM's integrated infrastructure and platforms, will bring the greatest flexibility, competitive competence and return on investment for our customers."

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (Nasdaq: EFUT) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain market, especially in the retail and fast moving consumer goods ("FMCG") industries. eFuture currently serves more than 1,000 clients, including 15 Fortune 500 companies, over 950 retailers and over 200 distributors operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has over 600 employees and 20 branch offices across China.

For more information about eFuture, please visit http://www.e-future.com.cn/.

About IBM

For more information on IBM's SaaS Business Partner program, visit:

www.ibm.com/isv/marketing/saas .

Fore more information about IBM retail solutions, visit: www.ibm.com/retail .

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects, " "anticipates, " "future, " "intends, " "plans, " "believes, " "estimates" and similar statements.

eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to first parties. Statements that are not historical facts, including statements about the company's beliefs and expectations, are forward-looking statements. Forward- looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the company's ability to hire, train and retain qualified managerial and other employees; the company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the expected growth of the Chinese economy and software market in the retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of January 26, 2009, and the company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For investor and media inquiries please contact:

    eFuture Information Technology Inc.
    Tel: +86-10-5165-0998 ext. 8804
    Email: ir@e-future.com.cn

    Andrew Keller
    Ogilvy Financial, Beijing
    Tel: +86-10-8520-3112
    Email: andrew.keller@ogilvy.com

    Xiao Yan Wang (Lillian)
    Communications, IBM China
    Tel: +86-10-6361-2992
    Email: xiaoyanw@cn.ibm.com

BEIJING--(MARKET WIRE)--Jan 22, 2009 -- IBM (NYSE:IBM - News) and eFuture Information Technology Inc. (NasdaqCM:EFUT - News) announced the launch of a Software-as-a-Service (SaaS) Solution for the retail distribution industry in China. The two companies have successfully completed the deployment of the solution at select Beijing Wangfujing Department Store Group ("Wangfujing Group") stores in Beijing, one of the largest retail groups in China.

This initiative has brought 2000 of Wangfujing Group's suppliers onto the platform, allowing them to exchange business information, arrange payments online and access purchase orders, returns, payment status, inventory levels and analysis of sales data. When the system is fully operational throughout the Group's stores in 17 cities across China by the end of 2009, the Group will be able to share the supply chain information real time with 20,000 suppliers.

"The ability to manage an efficient supply chain is a prerequisite for success in the retail industry," said Mr. Changxin Liu, Director of IT Department/President Assistance, Wangfujing Group. "Wangfujing Group now serves 10 million customers per day, and we believe the new supply chain system can enhance our Group's leadership in the China retail market."

China's retail market has been experiencing exponential growth in the last 20 years, and is forecasted to reach US$1.4 trillion by 2010 to become the world's second largest market. However, practices inherited from years ago -- such as manual procurement, manual verification, paper-based statements and months-long settlement cycles -- can no longer meet the needs of the new era and the rapid market changes.

In the new economy, retailers are challenged with the demands of managing inventories more closely, increasing supply chain efficiencies, increasing labor productivity and controlling costs. The new SaaS Solution addresses all of these needs, and provides an effective and scalable solution for retailers to manage change in a dynamic environment.

The IBM and eFuture SaaS Solution is delivered through the Web to the authorized suppliers of the retail businesses. With just an Internet-connected terminal, an authorized supplier can log onto the system with designated username and password to handle all their business transactions from order processing to settlement, and monitor the transactions. Meanwhile, retailers can also monitor the entire process including orders, delivery, inventory and payment real time and in a completely transparent and automated manner.

IBM and eFuture, a leader in China's supply chain management for the distribution sector, have started their collaboration since 2005 to develop software for China's retail industry. IBM integrated its SaaS infrastructure platform, designed and developed by IBM China Research Lab, with eFuture's industry solutions. The end-to-end SaaS Solution, running on WebSphere Application Server and DB2 database, is based on IBM's advanced SOA technology. The solution covers supply chain execution, task tracking and performance measurement. IBM is also responsible for the post-launch operation and maintenance service.

"SaaS is one of the fastest growing segments of the IT industry because it provides companies of all sizes with access to the latest, innovative supply chain solutions delivered remotely via a subscription model," said Mr. Adam Yan, eFuture's chairman and chief executive officer. "Our retail software and industry expertise has been taken to the next level following our partnership with IBM's cutting-edge technologies."

The SaaS solution helps retailers and their suppliers better synchronize and share information and analyze business data. This will greatly improve the productivity, shorten the credit cycle, reduce risks and facilitate the growth of both demand and supply sides of the businesses. All they need to do is to pay service fees on a monthly basis, which is as convenient as paying their water and electricity bills. It can help retailers reduce its investment in IT systems which in turn will help China's distribution sector combat the current financial crisis. In addition, the automated and IT-based settlement system expedites cash collection to provide suppliers with more working capital and investment opportunities.

"This particular solution represents China's first Software-as-a-Service application," said Mr. David Cheng, vice president, General Business, IBM Greater China Group. "We selected eFuture to collaborate on our retail SaaS solution because we believe eFuture has the expertise and best practices in supply chain management software that, with IBM's integrated infrastructure and platforms, will bring the greatest flexibility, competitive competence and return on investment for our customers."

About eFuture Information Technology Inc.

eFuture Information Technology Inc. is a leading provider of software and services in China's rapidly growing retail and consumer product industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain market. With over 600 employees and 20 branch offices across China, eFuture currently serves more than 1,000 clients, including 15 Fortune 500 companies, over 950 retailers and over 200 distributors operating in China. eFuture is one of IBM's premier business partners in Asia Pacific.

For more information about eFuture, please visit http://www.e-future.com.cn/

About IBM

For more information on IBM's SaaS Business Partner program, visit: www.ibm.com/isv/marketing/saas.

Fore more information about IBM retail solutions, visit: www.ibm.com/retail.

Contact:

     Media Contact
     Xiao Yan Wang (Lillian)
     Communications, IBM China
     (86)10-63612992
     email: xiaoyanw@cn.ibm.com

"We are pleased to be included among Deloitte's 500 fastest growing technology companies in Asia Pacific this year," said Mr. Adam Yan, eFuture's chairman and chief executive officer. "Over the past three years, we have leveraged our leading supply chain management software to expand our client base to over 950 retailers, including 15 Fortune 500 companies operating in China. These retailers form the foundation of our strategy as we rollout B2B services for our retailer clients' 850,000 suppliers and B2C services that have the potential to connect retailers directly to their over 90 million customers across China."

The Deloitte Technology Fast 500 Asia Pacific 2008 program evaluates leading companies in the TMT sector based on their average revenue growth rates over the last three years. The ranking includes companies based in Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, Philippines, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam.

Deloitte also announced that average revenue growth across the 500 companies ranked was the fastest in the program's history, despite a slowing global economy.

About Deloitte Technology Fast 500 Asia Pacific 2008 Program

The Deloitte Touche Tohmatsu (Deloitte) Technology Fast 500 Asia Pacific program is the region's most objective industry-ranking standard to focus on the technology field. The Asia Pacific program was launched in 2002 to recognize the effort and dedication of the 500 fastest-growing technology companies in Asia Pacific and includes all areas of technology, from Internet to biotechnology, from medical and scientific to computers/hardware. It includes both public and private companies.

Details of the winning companies are available at http://www.deloitte.com/fast500asiapac .

About eFuture Information Technology Inc.

eFuture Information Technology Inc. (NASDAQ: EFUT) is a leading provider of software and services in China's rapidly growing retail and consumer goods industries. eFuture provides integrated software and services to manufacturers, distributors, wholesalers, logistics companies and retailers in China's front-end supply chain market, especially in the retail and fast moving consumer goods ("FMCG") industries. eFuture currently serves more than 1,000 clients, including 15 Fortune 500 companies, over 950 retailers and over 200 distributors operating in China. eFuture is one of IBM's premier business partners in Asia Pacific and is a strategic partner with Oracle, Microsoft, JDA, Motorola and Samsung Network China. eFuture has over 600 employees and 20 branch offices across China.

For more information about eFuture, please visit http://www.e-future.com.cn/ .

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements.

eFuture may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to first parties. Statements that are not historical facts, including statements about the company's beliefs and expectations, are forward-looking statements. Forward- looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: eFuture's anticipated growth strategies; eFuture's future business development, results of operations and financial condition; expected changes in the company's revenues and certain cost or expense items; eFuture's ability to attract customers and leverage its brand; trends and competition in the software industry; the company's ability to hire, train and retain qualified managerial and other employees; the company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the expected growth of the Chinese economy and software market in the retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.

Further information regarding these and other risks is included in eFuture's annual report on Form 20-F and other documents filed with the SEC. All information provided in this press release and in the attachments is as of December 30, 2008, and the company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.

    For investor and media inquiries please contact:

    eFuture Information Technology Inc.
     Tel:   +86-10-5165-0998 x8804
     Email: ir@e-future.com.cn

    Andrew Keller
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-3112
     Email: andrew.keller@ogilvy.com