May 18, 2010 (FinancialWire) — Deer Consumer Products, Inc. (NASDAQ: DEER), a designer and ODM/OEM manufacturer of home and kitchen electronics marketing to both global and China domestic consumers, said it has initiated a stock buyback program allowing the company to purchase up to $20 million worth of Deer common stock.

As of Q1/2010, Deer said it had more than $75 million in cash without any long term debts or bank credit needs.

Bill He, chairman & CEO of Deer, said, "In light of Deer's current low valuation for reasons totally irrelevant to our fundamentals, and with our common stock trading at three times cash and an estimated mid-single-digit 2010 P/E (price to earnings) multiples, Deer feels strongly about taking proactive actions in enhancing shareholder value.”

He added that Deer has sufficient cash on hand to fund both the share buyback program and grow its business.

Deer's management currently owns around 50% of the company's entire shares outstanding. All of these management-controlled shares are locked up for three years and are restricted from selling to the public market prior to January 2013, according to Deer.

China-based Deer Consumer is a leading designer, ODM/OEM manufacturer and global marketer of quality small home and kitchen electric appliances. Deer's product lines include blenders, juicers, soy milk makers and a large variety of other home appliances designed to make today's lifestyles simpler and healthier. With more than 100 global clients/branded products such as Black & Decker, Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics and Wal-Mart, and rapidly expanding China domestic market footprint, Deer has enjoyed rapid sales and earnings growth in recent years.

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