SOURCE: China TechFaith

September 25, 2007 11:17 ET

TechFaith CEO Launches TechFaith Electronics Limited

BEIJING--(Marketwire - September 25, 2007) - China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF), an original design manufacturer focused on research and development of cell phone solutions, today announced that Mr. Defu Dong, China TechFaith's founder, CEO and a major shareholder, has launched TechFaith Electronics Limited. With about 300 customers and prospects, including tier-1 OEMs, TechFaith Electronics Limited will provide electronic manufacture service, handset tooling, components and accessories. It is expected that TechFaith Electronics Limited will be a non-exclusive supplier to China TechFaith, offering competitive prices. Mr. Dong will continue to serve as the Chairman and CEO of China TechFaith, and there will be no changes to China TechFaith's current executive team members.

The launch of TechFaith Electronics Limited is in line with disclosure in China TechFaith's annual report on Form 20-F for the year ended December 31, 2006 filed on June 29, 2007 with the Securities and Exchange Commission, which noted, "Our chief executive officer and major shareholder, Mr. Defu Dong, has expressed his intention to invest in companies that provide handset components, tooling and manufacturing services. In the future, these companies could engage in business with us. According to our internal controls policies, these types of transactions will be pre-approved by our board of directors and our audit committee, the agreements will involve normal arms-length business terms and the transactions will be disclosed in a timely manner."

About TechFaith

China TechFaith (NASDAQ: CNTF) is an original design manufacturer, or ODM, focused on research and development of cell phone solutions based in China. The Company employs approximately 1,200 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 PCs. With the capability of developing MMI / UI software on GSM/GPRS, CDMA1X, EV-DO, 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 and quotations from management in this announcement, 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
    EVP at The Ruth Group
    Tel: +646-536-7006
    Email Contact