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http://ipo.nasdaq.com/ViewFiling_frames.asp?filename=0001144204-10-056766.txt&filepath=%5C2010%5C11%5C02%5C

webpage: http://220.178.253.10/ossen/index.html

Ossen Innovation Co., Ltd. Announces Closing of Initial Public Offering

Press Release Source: Ossen Innovation Co., Ltd. On Thursday December 23, 2010, 11:00 am EST
SHANGHAI, Dec. 23, 2010 /PRNewswire-Asia-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq:OSN - News), a China-based manufacturer and seller of an array of plain surface prestressed steel materials and rare earth coated and zinc coated prestressed steel materials, announced today that it has closed its initial public offering ("IPO"), raising gross proceeds of $22.5 million less the underwriters discount and expenses. The Company has granted the underwriters an option to purchase up to an additional 750,000 American Depositary Shares (the "ADSs") each representing one ordinary share, to cover over-allotments. The Company's ADSs commenced trading on NASDAQ under the symbol "OSN" on December 21, 2010.

Global Hunter Securities, LLC and Knight Capital Markets LLC acted as the joint book-running managers for the offering, and Ladenburg Thalmann & Co. Inc. acted as the co-manager for the offering.

Ossen's registration statement relating to the IPO has been declared effective by the United States Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful under the securities laws of any such state or jurisdiction.

A copy of the prospectus relating to the offering may be obtained by contacting: Global Hunter Securities, LLC, 777 Third Avenue, New York, NY 10017, 646-264-5600.

http://finance.yahoo.com/news/Ossen-Innovation-Co-Ltd-prnews-412754084.html?x=0&.v=1

Deal Data

Company Description

we manufacture and sell an array of plain surface prestressed steel materials
and rare earth coated and zinc coated prestressed steel materials, which we
believe is the most comprehensive array among our competitors in China.  Our
materials are used in the construction of bridges, highways and other
infrastructure projects in the PRC and internationally.  Our facilities are
located in Maanshan City, Anhui Province and in Jiujiang City, Jiangxi
Province, in the People’s Republic of China.   According to a report issued
by the Institute of Quantitative and Technical Economics, Chinese Academy of
Social Sciences, or the CASS report, dated October 8, 2010, we were among the
top five prestressed concrete, or PC, material producers in the PRC as
measured by annual output from 2006 through 2008.   According to the PRC PC
Strand Industry Investment and Market Operation Research Report, in 2008,
our products were ranked third in sales in the PRC for PC strands and wires,
and ranked first in export sales of these materials by Chinese prestressed
steel manufacturers.   Historically, we and our customers have had a greater
than 90% success rate with respect to winning projects on which either we or
our customers have bid.  Based on our extensive experience in the industry,
we believe that Ossen is one of the leading enterprises in the PRC in the
design, engineering, manufacture and sale of customized prestressed steel
materials used in the construction of bridges, highways, and other
infrastructure projects in China.

Description of Business

we manufacture and sell an array of plain surface prestressed steel materials
and rare earth coated and zinc coated prestressed steel materials, which we
believe is the most comprehensive array among our competitors in China.  Our
materials are used in the construction of bridges, highways and other
infrastructure projects in the PRC and internationally.  Our facilities are
located in Maanshan City, Anhui Province and in Jiujiang City, Jiangxi
Province, in the People’s Republic of China.   According to a report issued
by the Institute of Quantitative and Technical Economics, Chinese Academy of
Social Sciences, or the CASS report, dated October 8, 2010, we were among the
top five prestressed concrete, or PC, material producers in the PRC as
measured by annual output from 2006 through 2008.   According to the PRC PC
Strand Industry Investment and Market Operation Research Report, in 2008,
our products were ranked third in sales in the PRC for PC strands and wires,
and ranked first in export sales of these materials by Chinese prestressed
steel manufacturers.   Historically, we and our customers have had a greater
than 90% success rate with respect to winning projects on which either we or
our customers have bid.  Based on our extensive experience in the industry,
we believe that Ossen is one of the leading enterprises in the PRC in the
design, engineering, manufacture and sale of customized prestressed steel
materials used in the construction of bridges, highways, and other
infrastructure projects in China.
 
During the six months ended June 30, 2010, we generated revenue of
approximately $31.4 million, or 53.5% of our total revenue, from sales of
our rare earth coated PC wires and PC strands.  We believe that we are the
only prestressed steel material manufacturer in the PRC that currently
manufactures rare earth coated materials.   Based on current and anticipated
orders, we estimate that revenues generated by sales of coated products
(including rare earth coated and zinc coated products in the aggregate) for
the year ending December 31, 2010 will comprise approximately 49% of our
total revenue.  Based on filled and anticipated orders, we believe that 95%
of our revenues generated by coated product sales in the year ending December
31, 2010 will be generated by sales of rare earth coated products and the
remaining 5% will be generated by sales of zinc coated products.  Our plan
is to continue to increase sales of our rare earth coated products to
manufacturers of steel cables for bridges and other infrastructure projects,
both in the PRC and internationally, in order to increase our revenues and
profits.
 
While we believe that our rare earth coating capabilities provide us with a
competitive advantage among our competitors, it is likely that our
competitors will seek to develop similar competing products in the near
future. We intend to continue to expend research and development efforts
to advance our rare earth coating applications even further. However,
there can be no assurance that our initial competitive advantage will be
retained and that one or more competitors will not develop products that
are equal or superior to ours in quality or are better priced than our rare
earth coated products.

The primary characteristics of these newly designed rare earth coated
products, which are used primarily in the construction of new bridges
and the renovation of older bridges in need of repair, are as follows:
 
·  Superior corrosion resistance; 

·  Superior toughness and plasticity; 

·  Endurance against extreme heat; 

·  Smooth and appealing coating; and 

·  Easily coated.

According to the CASS report, bridge and other infrastructure construction
is currently experiencing significant growth in China, which trend is
expected to continue until 2020.  Under existing PRC governmental policies,
significant investments are expected to be made during the next decade to
construct more than 200 new bridges over dozens of Chinese rivers,
including the Yangtze River, Yellow River, Songhua River, Jiangxi River,
Xiang River, Han River, Minjiang River and Pearl River.  In addition,
approximately 400 old bridges will need to be reinforced or expanded
during that period.  In addition, over the next decade, China is expected
to build four cross-sea bridges and tunnels, including the Bohai Bay
Cross-Sea Bridge, the Hong Kong-Zhuhai-Macao Cross-Sea Bridge, the
Qiongzhou Strait Bridge and the Taiwan Strait Tunnel.
 
Our management’s core strategy for the near future is to expand the
production capacity for our rare earth coated PC strands and PC wires,
which generate higher margins than our other products, in order to
continue to take advantage of current trends in the bridge and
infrastructure industries in the PRC and other international markets,
including in Southeast Asia and Australia, in the development and
renovation of bridges and other infrastructure projects.  Our products
are marketed under the “Ossen” brand name both domestically and
internationally.  We handle all aspects of market research, product
design, engineering, manufacturing, sales and marketing.  We conduct
our manufacturing operations in our ISO 9001 manufacturing facilities
in Maanshan City and Jiujiang City, in the PRC.
 
Ossen Materials, our operating subsidiary, was founded in 2004.  In
2005, we expanded our manufacturing capabilities by acquiring a facility
in Jiujiang City in the PRC and forming Ossen Jiujiang.  The founders of
Ossen were among the first in China to introduce and promote the use of
prestressed steel materials in construction projects.  The founders of
Ossen have been involved in producing prestressed materials since 1994
and have accumulated more than 15 years of experience in the prestressed
materials industry.

Use of Proceeds

We estimate that we will receive net proceeds of approximately $19.6 million
from this offering, or approximately $22.7 million assuming the underwriters
exercise their option to purchase additional ADSs in full, after deducting
estimated underwriting discounts, commissions and estimated offering expenses
payable by us.
   
We intend to use an aggregate of approximately $22 million of the net proceeds
from this offering to increase our production capacity.  Specifically, our
plan is to allocate:
 
   ·  $2 million toward the construction costs associated with the extension
      of our Maanshan facility; and;  

   ·  $20 million toward the purchase and installation of eight new production
      lines, to be located in the extended facility, which will be used for
      the production of approximately 30,000 tons annually of coated PC wires
      and PC strands.  

The amounts and timing of these expenditures may vary depending on our ability
to expand our business, the amount of cash generated by our operations,
competitive and technological developments and the rate of growth, if any, of
our business. Accordingly, our management will have significant discretion in
the allocation of the net proceeds we will receive for this offering.
Depending on future events and other changes in the business climate, we may
determine at a later time to use the net proceeds for different purposes.
Proceeds from this offering above the amount needed for expansion, if any,
would be used for working capital. If we are unable to raise sufficient funds
from this offerings to pay for our anticipated expansion in full, we intend to
use cash from our operations or bank loans to complete the expansion. 
   
Pending the use of the net proceeds, we intend to invest the net proceeds in a
variety of capital preservation instruments, including short-term, investment-
grade, interest-bearing instruments.

Competition / Competitors

China is one of the world’s largest producers and markets for prestressed
steel materials.  In 2009 and during the six months ended June 30, 2010,
our sales were predominantly to customers located in the PRC, and as a
result, our primary competitors were PRC domestic companies.
 
We believe that being located in China provides us with a number of
competitive factors within our industry, including the following:
 
·Pricing.  Flexibility to control pricing of products and the ability to
use economies of scale to secure competitive pricing advantages;  
 
·Technology.  Ability to manufacture products efficiently, utilize low-
cost raw materials, and to achieve better production quality; and 

·Barriers to entry.  Technical knowledge, access to capital, local market
knowledge and established relationships with suppliers and customers to
support the development of commercially viable production facilities and
products. 

Competition among manufacturers of plain surface steel products in China
can be characterized as fragmented, with many large and small companies
competing with each other.  Our primary competitors for these products
are Baosteel Group Shanghai Ergang Co. Ltd., Jiangyin Fasten Steel
Products Co., Ltd., Jiangyin Walsin Steel Cable Co. Ltd and Shuangyou
Eaststeel.
 
Competition among PRC manufacturers of zinc coated prestressed products
in China is limited to only four companies.  Our main competitors for
these products are Baosteel Group Shanghai Ergang Co. Ltd., Shuangyou
Eaststeel and Jiangyin Walsin Steel Cable Co. Ltd.  Furthermore, we
believe that we are the only Chinese rare earth coated prestressed
material manufacturer.  While we believe that our rare earth coating
capabilities provide us with a competitive advantage among our
competitors, it is likely that our competitors will seek to develop
similar competing products in the near future. We intend to continue
to expend research and development efforts to advance our rare earth
coating applications even further. However, there can be no assurance
that our initial competitive advantage will be retained and that one
or more competitors will not develop products that are equal or superior
to ours in quality or are better priced than our rare earth coated
products.

We believe that we differentiate ourselves because we have built a
recognized brand name in the industry and because we offer superior
product quality, timely delivery and high value.  We believe that we
have the following advantages over many of our competitors:

·the performance and cost effectiveness of our products; 

·our ability to manufacture and deliver products in required volumes,
on a timely basis, and at competitive prices; 

·superior quality and reliability of our products; 

·our after-sale support capabilities, from both an engineering and an
operational perspective; 

·effectiveness of customer service and our ability to send experienced
operators and engineers as well as a seasoned sales force to assist our
customers; and 

·overall management capability.

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OSN Auditor:  Sherb & Co

A list of companies audited by  Sherb & Co:

Information on auditor provided by Zero Hedge at the following link:

http://www.zerohedge.com/article/more-chinese-fraud-kerrisdale-claims-china-education-alliance-nyseceu-mostly-hoax-stock-monk