SOURCE: China TechFaith

China Techfaith

October 19, 2009 07:24 ET

Chinese Mobile Phone Branding Companies Enter Agreements With TechFaith for Its Mobile Phone Game Services

BEIJING--(Marketwire - October 19, 2009) - China Techfaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith") today announced its signing of agreements with Chinese mobile phone branding companies aigo, Doov, AMT, QiGi and Flyfot. Under the agreements, TechFaith, through its wholly-owned gaming subsidiary 798 Entertainment Limited ("798 Entertainment," formerly known as One Net Entertainment Limited), will provide game content services to these Chinese mobile phone branding companies. These mobile phone branding companies will build the game contents provided by 798 Entertainment into their mobile phones. In addition to the built-in games, mobile phone users can also download other 798 mobile phone games after purchasing such mobile phones. The mobile phone branding companies will pay service fees to 798 Entertainment. The mobile phone customers can play the built-in and other downloaded games free of charge, and will be charged additional fees when they purchase accessories for the games.

Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "The agreements further confirmed our view that there will be an increasing convergence of mobile phone contents and handsets as mobile network operators and mobile handset branding companies seek to better differentiate themselves for a competitive advantage. We believe that with increasing 3G network penetration in China, mobile phone games will enter a period of fast development. Consumer demand for content-rich mobile handsets is driving the convergence trend, which we expect will result in a premium valuation being placed on contents. Given the considerable opportunity in content development, our gaming development teams will continue to focus on designing new games for our partners."

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 employs approximately 700 professionals, of whom approximately 90% are engineers.

--  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, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.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," "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