SOURCE: China TechFaith

China Techfaith

January 05, 2010 07:00 ET

TechFaith Completes Acquisition of QiGi

BEIJING--(Marketwire - January 5, 2010) - China Techfaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith") today announced the completion of its acquisition of 100% of QiGi Future Technology Co., Ltd. (Beijing) ("QiGi") in an all-stock deal valued at US$12.0 million based on the closing price of TechFaith's ADSs on NASDAQ on July 28, 2009, which was US$2.40 per ADS. TechFaith has also agreed to provide a US$500,000 working capital line. Under terms of the agreement, the number of ordinary shares issued will be adjusted if QiGi does not achieve a net income of over US$8.0 million for the fiscal year of 2010 and over US$10.0 million for the fiscal year of 2011.

Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "We expect this transaction to contribute to our business going forward as we continue to build momentum. We expect this important acquisition will help in the efforts of our branding business to target enterprise users and operator tailored customers. We believe the branding business will lead to other business opportunities for TechFaith over the long term and we are very optimistic about the future of QiGi as a key TechFaith brand."

About TechFaith

TechFaith (NASDAQ: CNTF) is a China-based original developed product provider focused on the original design and sales of mobile phone products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited. 798 Entertainment Limited currently engages in providing self-developed as well as co-developed and licensed cell phone contents.

--  TechFaith engages in the development and production of middle to high end
    handsets and tailor made handsets. TechFaith's original developed products
    include: (1) multimedia phones and dual mode dual card handsets of multiple
    wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA,
    GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones;
    and (3) handsets with interactive online gaming and professional game terminals
    with phone functionality.
--  With the capability of developing Middleware Application MMI/UI software on
    2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA)
    communication technologies, TechFaith is able to provide Middleware Application
    MMI/UI software packages that fulfill the specifications of handset brand owners
    and carriers in the global market. For more information, please visit
    www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets through
    its websites www.798uu.com and www.798game.com with gaming content developed
    internally, co-developed and licensed from third parties.
    

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith and management quotations contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact Information

  • CONTACTS:
    In China:
    Jay Ji
    China Techfaith Wireless Communication Technology Limited
    Tel: 86-10-5822-8390
    ir@techfaith.cn

    In the U.S.:
    David Pasquale
    Global IR Partners
    Tel: +1 914-337-8801
    cntf@globalirpartners.com