Net sales for the first quarter were $32.4 million, a 36.1% increase from $23.8 million over the same period last year. Growth in net sales was fueled by both a sizeable increase of international orders, which include wind energy products and non-wind related cast resin transformers as well as from increased domestic cast resin sales orders. In the first quarter, net sales outside of China increased 485% to $8.0 million, or 25% of net sales, compared to $1.65 million, or 6.9% of net sales in the same period last year. First quarter domestic sales increased 10.2% to $24.4 million from $22.2 million in the prior year period.

Cast resin transformers (excluding those for wind power applications), switch gears and unit substations represented $25.9 million, or 80% of net sales in the first quarter, while wind energy products represented $6.5 million, or 20% of net sales in the first quarter.

Gross margin in the first quarter was $11.7 million, a 56% increase from $7.5 million, in the same period last year. First quarter gross margin increased to 36.2% compared to 31.3% in the same period last year. The Company benefited from a lower cost of sales on an absolute basis due to lower raw material prices compared to the same period last year.

Selling, general and administrative expenses in the first quarter were $6.2 million, or 19.2% of net sales, versus $4.5 million, or 18.8% of net sales in the same period last year. Selling, general, and administrative expenses increased primarily due to additional overhead costs at the Company's Wuhan and Shanghai facilities, which were not operating during the same period last year.

Operating income increased to $5.5 million, or 16.9% of net sales, an 83.5% increase compared to $3.0 million, or 12.6% of net sales in the same period last year.

Net income for the first quarter was $4.7 million, or $0.58 per diluted share, increased 94.9% compared with $2.4 million or $0.30 per diluted share, in the same period last year. First quarter net income as a percentage of net sales was 14.4% as compared to 10.1% in the same period last year.

Mr. Zhiyuan Li, Chief Executive Officer of Jinpan commented, "We are off to a good start in what is traditionally one of our slower quarters of the year. We are pleased to see a substantial increase in orders from our international business segment in the first quarter. Our international customers are placing orders for cast resin transformers for wind power applications as well as transformers for more traditional power generation applications used in urban (trains & subways, hospitals, airports, office buildings), industrial (factories), and commercial developments (processing plants, data centers). We expect a steady rise in international demand in 2009 as we continue to garner attention and receive orders from some of the largest, most prominent electrical equipment OEMs in the industry. We expect international sales to account for a greater portion of our total sales in 2009 than 2008. We are pleased to see that a substantial portion of China's $585 billion economic stimulus plan will be allocated to the infrastructure development projects. We believe that we are well positioned to benefit from the stimulus package

As such, we are taking the necessary steps to ensure we have an appropriate level of capacity to meet demand over the next several quarters and well into the future. Our newest operational facility in Wuhan, which currently manufactures our standard cast resin transformers will be outfitted to maximize capacity by the end of 2009 while our Shanghai manufacturing facility is also expected to be completed in the third quarter of 2009. Once completed, this facility will house all of our wind related products.

We are making steady progress in our business. We believe that we are well positioned to capitalize on current challenging market conditions, penetrate new markets, and expand our market share in the electrical equipment market. We have a strong balance sheet, a healthy cash position, manageable debt and the right strategic plan to sustain ably manage our business for growth this year and beyond. We look forward to capitalizing on our opportunities and enhancing value for our shareholders," concluded Mr. Li.

Financial Outlook

For the full year 2009, the Company currently anticipates net sales of approximately $176 million to $182 million, a 14% to 18% increase over 2008 sales of $154 million. The Company anticipates net income of approximately $22.5 million to $23.3 million, a 14% to 18% increase over 2008 net income of $19.8 million. The Company anticipates diluted earnings per share for 2009 to be $2.75 to $2.85 per share.

Conference Call Information

Jinpan's management will host an earnings conference call today, May 15, 2009 at 8:30 a.m. U.S. Eastern Standard Time. Listeners may access the call by dialing #1-913-981-5567. A webcast will also be available via the Company's website at http://www.jstusa.net/ or at http://www.viavid.net/. A replay of the call will be available through May 29, 2009.