FUQI International, Inc. (Nasdaq: FUQI - News), a leading designer of high quality precious metal jewelry in China, developing, promoting, and selling a broad range of products in the large and rapidly expanding Chinese luxury goods market, today announced that after initial review of its operating results for the 2008 first quarter, and internal forecasts for the remainder of the year.
 
Management sees operating results for its business substantially ahead of its most recent financial guidance provided at the time the Company reported its fourth quarter and fiscal 2007 financial results. Management now anticipates first quarter 2008 revenue of US$76-$77 million, net income of $5.7-$5.8 million and diluted EPS of $0.27-$0.28. Preliminary first quarter financial results include an expected contribution of approximately $1.0-$1.1 million from the Company's two jewelry retail counters.

This new guidance replaces management's previous forecast of wholesale revenue of approximately US$62 million, net income in the range of $4.0-$4.4 million, and diluted EPS of $0.19-$0.21. Gross margin for the first quarter is expected to be approximately 11%, and net margin is expected to be approximately 7.5%.