SOURCE: China TechFaith

January 14, 2008 08:24 ET

TechFaith Launches Wireless Content Unit

BEIJING--(Marketwire - January 14, 2008) - China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF), an original developed product (ODP) provider focused on research and development of cell phone solutions, today announced the formation of TechFaith Tech-Interactive Limited, a wholly owned subsidiary focusing on the development and operation of wireless application and content.

The new wireless content unit will initially set up three studios to develop interactive online gaming content. As a unique ODP provider, TechFaith offers the market mid to high end and tailor-made multimedia phones, dual mode dual card phones, smartphones and Pocket PC phones. Extending this strategy, TechFaith is now adding handsets with interactive online gaming and professional game terminals with phone functionality to its current product portfolio. In addition, TechFaith will engage in gaming operations in the Chinese market and provide original design wireless gaming application and software services to the international market. This will enable TechFaith to gradually evolve from an original developed product provider to an original developed product and content provider. TechFaith's wireless game terminals will be Windows Mobile based and ultra small PCs will be based on Windows Vista and Windows XP.

Mr. Defu Dong, CEO of TechFaith, said, "TechFaith successfully differentiated itself from traditional players in the handset industry through our hybrid ODP business model. Along the way, we have closely monitored trends and opportunities in the related wireless content sector. We continue to believe this sector has strong growth potential and view wireless online games as a logical place to start penetrating the broader wireless content sector. TechFaith's advantage in handset technology development and research will facilitate our ability to test and run robust content on a variety of platforms. Importantly, we expect enriched content will help increase the average selling price of our current mobile products. Finally, game services and game terminals will be another source of new revenue. By launching TechFaith Tech-Interactive Ltd. as a wholly owned subsidiary we will be able to incorporate technologies for the convergence of cable and wireless networks, while leveraging our existing scale and relationships to accelerate growth at home and abroad."

About TechFaith

TechFaith (NASDAQ: CNTF) is an original developed product provider focused on research and development of cell phone solutions. Based in China, the Company employs approximately 1,300 professionals, of whom 90% are engineers. TechFaith's business includes handset design, feature phone solution, data card and wireless module, application software, and smartphone and pocket PC. With the capability of developing MMI / UI software on GSM/GPRS, CDMA1X, EVDO, WCDMA/UMTS, HSDPA and TD-SCDMA communication technologies, TechFaith is able to provide MMI/UI software packages that fulfill the specifications of handset brand owners and major global operators. Having a full range of wireless application software including WAP, Java, MMS, WWW browser, SyncML and DRM, TechFaith is also providing total solutions for upper layer software of handsets. In addition, TechFaith is developing smartphone software based on open operating systems including Linux and Windows Mobile, and capable of implementing high-end smartphones integrating Bluetooth, WiFi, high megapixel cameras, etc. based on different communication technologies according to special requirements of customers. For more information, please visit www.techfaithwireless.com.

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" and similar statements. Among other things, the business outlook, as well as TechFaith's strategic and operational plans, 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, TechFaith's limited operating history, TechFaith's ability to retain existing or attract additional domestic and international customers, TechFaith's earnings or margin declines, failure to compete against new and existing competitors, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, and other 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:
    Ms. Helen Zhang
    Tel: 86-10-5822-7390
    Email Contact

    In the U.S.:
    David Pasquale
    Gerrard Lobo
    The Ruth Group
    Tel:+646-536-7023
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