Ascend Acquisition Corp. Announces Third Quarter Financial

Results of Merger Partner 
WAYNE, Pa. and AUSTIN, Texas, Dec. 10 /Xinhua-PRNewswire-FirstCall/ --
Ascend Acquisition Corp. ("Ascend") (OTC Bulletin Board: ASAQ, ASAQU, ASAQW),
a specified purpose acquisition company, today announced the unaudited
financial results for the three and nine months ended September 30, 2007, for
its merger partner, e.PAK Resources (S) Pte. Ltd. ("ePAK"). 


    Third Quarter Highlights
    -- Net sales increased 31% year-over-year to $12.4 million
    -- Gross profit rose 27% year-over-year to $4.1 million
    -- Adjusted EBITDA increased 21% year-over-year to $2.0 million
    -- Net income increased 41% year-over-year to $686,000
    -- Tripled manufacturing space at Shenzhen facility to 600,000 square feet
    -- Expanding cleanroom space by about 50% due to strong demand for wafer
       and disk drive products
    Third Quarter 2007 Results


In the third quarter of 2007, ePAK generated net sales of $12.4 million,
up 31.2% from $9.4 million in the same quarter in 2006.  This growth was
primarily the result of a substantial increase in sales of wafer shippers,
wafer transport media and data storage devices to new customers and an
increase in sales to existing customers.  Sales of IC handling products also
increased during the quarter. 
"Our third quarter results reflect strong demand for our wafer products
from both new and existing customers, which translated into double-digit
growth in revenues, adjusted EBITDA and profits," said Steve Dezso, ePAK's CEO.
"We expect our margins to improve as wafer handling and other new consumable
products represent a larger portion of our product mix going forward." 
Don K. Rice, Chairman of the Board and CEO of Ascend, commented, "ePAK is
a high growth, high margin business managed by semiconductor veterans who have
operated successfully in China over the last 15 years.  We believe ePAK will
utilize the additional capital from the merger to continue to deliver
exceptional financial performance well into the future." 
Gross profit increased 26.6% in the third quarter of 2007 to $4.1 million.
Gross margin was 33.1% in the third quarter of 2007, down from 34.3% in the
same quarter of 2006.  During the quarter, the increased contribution of
higher margin wafer products to the product sales mix had a positive impact on
gross margin, which was offset by higher materials costs for IC handling
products. 
Operating expenses were $3.0 million, up 19.4% from $2.5 million in the
same quarter of 2006, primarily due to higher selling and administrative
expenses in support of increased sales and increased costs at its
manufacturing facilities in China.  Operating expenses accounted for 24.5% of
sales in the third quarter of 2007, down from 26.9% of sales in the year ago
period. 
Operating profit increased 52.5% to $1.1 million and adjusted EBITDA
increased 20.6% to $2.0 million in the third quarter of 2007. 
Net income was $686,000, up 41.4% from $485,000 in the same quarter of
2006.  After an accretion of convertible contingently redeemable common shares,
which will be eliminated following the close of ePAK's merger with Ascend, net
income attributable to common shareholders was $245,000, up from $43,000 in
the third quarter of 2006. 
Nine-Month Results 
Net sales for first nine months of 2007 increased 25.6% to $32.8 million,
compared to $26.1 million in the first nine months of 2006. Gross profit
increased 18.9% to $11.3 million, up from $9.5 million in the first nine
months of 2006.  Gross margin was 34.3%, compared to 36.2% in the first nine
months of 2006.  Operating profit increased 29.4% to $2.9 million and adjusted
EBITDA increased 19.1% to $5.0 million in the first nine months of 2007.  Net
income was $1.8 million, up 14.4% from $1.6 million in the first nine months
of 2006.  After an accretion of convertible contingently redeemable common
shares, net income attributable to common shareholders was $359,000, up from
$61,000 in the first nine months of 2006. 
Financial Condition 
At September 30, 2007, ePAK had cash and cash equivalents of $1.9 million,
total assets of $38.0 million and short-term bank borrowings of $5.1 million.
The Company generated $10.7 million in cash flow from operating activities in
the first nine months of 2007. 
Outlook 
"In the coming months, we will continue to reinvest our growing cash flows
into our business in order to meet the rapidly rising demand for our products
and minimize the impact of our capacity constraints," Mr. Dezso said.  "We
look forward to the closing of the merger with Ascend, which will allow us to
make the capital investments we need to fully take advantage of the multiple
growth opportunities available to us." 
"We are confident that our shareholders will agree that ePAK provides an
attractive opportunity to invest in the rapidly growing $40 billion
semiconductor materials market," Mr. Rice said.  "Ascend's planned merger with
ePAK meets the 80% valuation test and is fair based on industry comparables.
This transaction is structured for aggressive growth, in which all of the cash
at closing and from the warrant conversion will be available for ePAK's
continued growth." 
In July 2007, Ascend entered into a definitive agreement to merge with
ePAK.  Under the terms of the agreement, at the closing of the transaction,
Ascend will reincorporate as a Bermuda public company and acquire 100% of the
outstanding capital stock of ePAK.  Upon completion of the transaction, which
is expected in the first quarter of 2008, the resulting public company will be
domiciled in Bermuda and renamed ePAK International Ltd.  It is expected that
ePAK International's common stock and warrants will trade on the NASDAQ Global
Market. 
Additional Information 
The parties have filed with the SEC a registration statement and proxy
statement under Form S-4 in connection with the proposed acquisition of ePAK
and reincorporation of Ascend in Bermuda.  STOCKHOLDERS OF ASCEND AND OTHER
INTERESTED PERSONS ARE ADVISED TO READ, WHEN AVAILABLE, THE FINAL PROSPECTUS
AND DEFINITIVE PROXY STATEMENT IN CONNECTION WITH THE TRANSACTIONS AND THE
SOLICITATION OF PROXIES FOR THE SPECIAL MEETING OF ASCEND'S STOCKHOLDERS
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. 
The final prospectus and definitive proxy statement will be mailed to
Ascend's stockholder as of a record date to be established for voting on the
acquisition and redomestication.  These documents also will be available
without charge online at the Securities and Exchange Commission's Internet
site (http://www.sec.gov) and by mail through requests to Ascend Acquisition
Corp., 435 Devon Park Drive, Bldg. 400 Wayne, PA 19087, Attention: T. Anderson. 
Stockholders and other interested persons can also read Ascend's final
prospectus, dated May 11, 2006, for a description of the security holdings of
Ascend's directors and officers and of EarlyBirdCapital, Inc., the
underwriters of Ascend's initial public offering, and their respective
interests in the successful consummation of the proposed transactions. 
Use of Non-GAAP Financial Information 
This press release contains adjusted EBITDA, a financial measure that is
not defined by US GAAP.  Adjusted EBITDA was derived by calculating earnings
before interest, taxes, depreciation and amortization and non-cash charges
including share based compensation, and provisions for bad debt and inventory.
The Company's management uses adjusted EBITDA as an important financial
measure to assess the ability of ePAK's assets to generate cash sufficient to
pay interest on its indebtedness, meet capital expenditure and working capital
requirements, and otherwise meet its obligations as they become due.  The
Company's management believes that the presentation of adjusted EBITDA
provides useful information regarding ePAK's results of operations because it
assists in analyzing and benchmarking the performance and value of ePAK's
business.  The Company's calculation of adjusted EBITDA may not be consistent
with similarly titled measures of other companies.  The table below presents a
reconciliation of adjusted EBITDA to net income, its most directly comparable
U.S. GAAP financial measure, on a historical basis, for the periods presented. 
About e.PAK Resources (S) Pte. Ltd. 
ePAK is a full-service designer, manufacturer and supplier of precision
engineered products and solutions for the automated transport and handling of
semiconductor and electronic devices.  ePAK's product areas include front-end
wafer handling, back-end IC transport, and end-system sub-assembly handling.
The Company's products are sold globally to top tier global customers
including semiconductor companies, system OEMs, and IC assembly and test
operations.  The Company's low cost, large-scale manufacturing operations in
Shenzhen, the People's Republic of China ("PRC") are centrally located to the
semiconductor industry.  ePAK's executive offices are located in Austin, Texas
and the Company maintains nine sales and applications engineering offices
worldwide. 
About Ascend Acquisition Corporation 
Ascend Acquisition Corp. was formed on December 5, 2005 for the purpose of
effecting a merger, capital stock exchange, asset acquisition or other similar
business combination with an operating business.  Ascend's registration
statement for its initial public offering was declared effective on May 11,
2006 and the offering closed on May 22, 2006, generating net proceeds of
approximately $38.5 million from the sale of 6.9 million units, including the
full exercise of the underwriters' over-allotment option and the sale of
166,667 units to the Ascend's Chairman and CEO, Don K. Rice.  Each unit was
comprised of one share of Ascend common stock and two warrants, each with an
exercise price of $5.00.  As of September 30, 2007, Ascend held approximately
$40.3 million in a trust account maintained by an independent trustee, which
will be released to Ascend upon the consummation of the business combination. 
FORWARD-LOOKING STATEMENTS 
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 about Ascend,
ePAK and their combined business after completion of the proposed business
combination.  These forward-looking statements are based on current
expectations and projections about future events.  These forward-looking
statements are subject to known and unknown risks, uncertainties and
assumptions about us that may cause actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements.  In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "could," "would,"
"expect," "plan," "anticipate," "believe," "estimate," "continue," or the
negative of such terms or other similar expressions.  Factors that might cause
or contribute to such a discrepancy include, but are not limited to, Ascend's
ability to effect a business combination, ePAK's ability to grow future
revenues and earnings, changes in demand for ePAK's products, market
acceptance of the ePAK's products, changes in the laws of the People's
Republic of China that affect ePAK's operations, and other factors that may be
detailed from time to time in Ascend's filings with the United States
Securities and Exchange Commission and other regulatory authorities. 


                         e.PAK RESOURCES AND SUBSIDIARIES
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (United States dollars in thousands)
                                      Three Months             Nine Months
                                         ended                    ended
                                      September 30,            September 30,
                                    2007         2006       2007         2006
                                 (Unaudited)(Unaudited) (Unaudited)(Unaudited)
    Net sales                    $12,355       $9,420    $32,818      $26,131
    Cost of sales                 (8,260)      (6,185)   (21,564)     (16,667)
    Gross profit                   4,095        3,235     11,254        9,464
    Selling, general and
     administrative
     expenses                     (2,953)      (2,488)    (8,210)      (7,102)
    Research and development         (70)         (44)      (165)        (137)
    Operating profit               1,072          703      2,879        2,225
    Interest income                    5            5         15           14
    Other income                       3            3          8           15
    Interest expense                (112)        (102)      (351)        (236)
    Other expense                   (118)         (47)      (324)        (194)
    Income before income taxes       850          562      2,227        1,824
    Income tax expense              (164)         (77)      (389)        (218)
    Net income                       686          485      1,838        1,606
    Accretion of convertible
     contingently redeemable
     common shares                  (441)        (442)    (1,479)      (1,545)
    Net income attributable to
     common shareholders            $245          $43       $359          $61
                         e.PAK RESOURCES AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (United States dollars in thousands)
                                                  September 30,    December 31,
                                                          2007            2006
                                                    (Unaudited)
    ASSETS
    Current assets:
    Cash and cash equivalents                           $1,501          $2,624
    Restricted cash and cash equivalents                   395             381
    Accounts receivable, net                             9,090           6,535
    Inventories                                          9,559           8,994
    Deferred tax assets                                      7               8
    Other current assets                                   765             462
    Total current assets                                21,317          19,004
    Long-term deposits                                      13              13
    Property, plant and equipment, net                  16,686          14,506
    Total assets                                       $38,016         $33,523
    LIABILITIES AND SHAREHOLDERS'
     DEFICIT
    Current liabilities:
    Accounts payable                                   $11,213          $9,432
    Accrued liabilities                                  1,897           1,571
    Current maturities of long-term debt                   709             501
    Short-term borrowings                                5,139           4,964
    Short-term loan from Parent Company                  4,807           4,903
    Income taxes payable                                 1,144             930
    Total current liabilities                           24,909          22,301
    Non-current liabilities:
    Long-term debt, less current
     maturities                                            901           1,061
    Deferred tax liabilities                               338             147
    Redeemable common shares:
    Convertible contingently redeemable
     common shares                                      25,685          24,205
    Shareholders' deficit:
    Common shares                                          400             400
    Common share warrants                                   --              19
    Accumulated deficit                                (14,251)        (14,698)
    Non-distributable reserves                             121             121
    Accumulated other comprehensive loss                   (87)            (33)
    Total shareholders' deficit                        (13,817)        (14,191)
    Total liabilities and shareholders'
     deficit                                           $38,016         $33,523
                         e.PAK RESOURCES AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                       (United States dollars in thousands)
                                                  9 Months ended September 30,
                                                      2007               2006
    Cash flows from operating activities         Unaudited          Unaudited
    Net income                                      $1,838             $1,606
     Adjustments to reconcile net
      income to net cash provided
      by operating activities:
       Depreciation of property,
        plant and equipment                          2,049              1,728
       Share-based compensation                         69                225
       Write-off of inventory                          253                188
       Provision for bad debt                           --                  6
       Deferred tax expenses                           192                108
       Unrealized exchange
        differences                                    102                 35
       Increase (decrease) in cash
        from changes in:
         Accounts receivable                        (2,555)              (318)
         Inventories                                  (819)            (2,047)
         Due from Parent Company                        --                125
         Other current assets                         (303)              (477)
         Accounts payable                            9,319              7,101
         Accrued liabilities                           331                (93)
         Income tax payables                           214                 86
         Net cash flows provided
          by operating activities                   10,690              8,273
    Cash flows from investing activities
     Purchase of property, plant
      and equipment                                 (3,435)            (3,607)
         Net cash flows used in
          investing activities                      (3,435)            (3,607)
    Cash flows from financing activities
     Increase in restricted cash
      and cash equivalents                             (14)               (12)
     Proceeds from short-term
      borrowings                                    15,280             13,987
     Repayment of short-term
      borrowings                                   (23,540)           (18,741)
     Proceeds from long-term debt                      490                600
     Repayment of long-term debt                      (442)              (248)
     Repayment of loans from Parent
      Company                                          (96)              (139)
         Net cash flows used in
          financing activities                      (8,322)            (4,553)
         Net (decrease) increase
          in cash and cash
          equivalents                               (1,067)               113
    Cash and cash equivalents at
     beginning of period                             2,624              1,979
    Effects of exchange rates on cash
     and cash equivalents                              (56)               (21)
    Cash and cash equivalents at end of
     period                                         $1,501             $2,071
    Supplemental cash flow disclosures :
     Cash paid for interest                            351                236
     Cash Paid for income taxes                          4                 22
     Non-cash purchase of property,
      plant and equipment through
      accounts payable                                 794                553
     Non-cash settlement of
      accounts payable through
      issuance of notes payable                      8,435              6,303
                e.PAK RESOURCES (S) PTE. LTD. AND SUBSIDIARIES
               Reconciliation of Net Income to Adjusted EBITDA
     (Amounts expressed in United States dollars, in thousands; US GAAP)
                             Three Months Ended         Nine Months Ended
                                September 30,             September 30,
                              2007        2006           2007        2006
    Net income                $686        $485         $1,838      $1,606
     Income taxes              164          77            389         218
     Interest                  107          97            336         222
     Depreciation and
      amortization             713         765          2,049       1,728
     Non-cash items            289         200            424         454
     Adjusted EBITDA        $1,959      $1,624         $5,036      $4,228
    For more information, please contact:
     Ascend Acquisition Corporation
     Don K. Rice, Chairman and CEO
     Phone:   +1-610-519-1336
     Email:   don@ascendgrowth.com
     Website: http://www.ascendgrowth.com
     ePAK International Inc.
     Steve Dezso, CEO
     Phone:   +1-512-231-8083
     Email:   steve.dezso@epak.com
     Website: http://www.epak.com
     Investor Relations:
     Crocker Coulson, President
     CCG Investor Relations
     Phone:   +1-646-213-1915
     Email:   crocker.coulson@ccgir.com
     Website: http://www.ccgir.com




SOURCE  Ascend Acquisition Corporation 
CONTACT:
Ascend Acquisition Corporation - Don K. Rice, Chairman and CEO, +1-610-519-1336, or don@ascendgrowth.com; or ePAK International Inc. - Steve Dezso, CEO, 
+1-512-231-8083, or steve.dezso@epak.com; or Investor Relations - Crocker 
Coulson, President of CCG Investor Relations, +1-646-213-1915, or 
crocker.coulson@ccgir.com
-0- Dec/10/2007 19:56 GMT
 
 
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