The board of directors of Arts Optical International Holdings Ltd. announced that based on the company's preliminary review of the results of the Group for the ten months ended October 31, 2012, the net profit for the year ending December 31, 2012 is presently anticipated to be significantly lower than that of 2011. The Board believes that the significant decrease in the net profit of the Group will be attributable to various factors, including the increase in labour costs after the minimum wage in Shenzhen, where the Group's manufacturing facilities are located, increased by 20% in April 2011 and 14% in February 2012; and the appreciation of Renminbi in 2012.