Yangtze Telecom Corp.
TSX VENTURE : SMS

Yangtze Telecom Corp.

April 23, 2008 20:59 ET

Yangtze Telecom Receives Exchange Approval of Business Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 23, 2008) - Yangtze Telecom Corp. (TSX VENTURE:SMS) is pleased to announce that the TSX-V has accepted for filing documentation with respect to the acquisition by the Company, effective December 1, 2007, of a 95% interest in Hunchun Wanlian Zhiye Company Ltd. (HCWZ), a company that holds a 100% equity interest in Hunchun VAS Technology Company Ltd. (HCVAS) from China Poly Group Limited ("China Poly").

As disclosed in its February 19, 2008 press release, the Company issued, pursuant to the underlying share exchange agreement, 10 million shares that were deposited into escrow pending verification of the net asset value (NBV) of HCVAS as of December 1, 2007, with the understanding that the Company would issue additional shares to the shareholders of China Poly calculated by dividing $0.36 per share into the excess amount that 95% of NBV exceeded $3.6 million. The Company's external auditor has completed the verification of NBV and has satisfied the Exchange that the NBV of HCVAS is $6,431,485 as of December 1, 2007 and the 95% share acquired by the Company is valued at $6,109,910. Therefore, the total number of shares issuable by the Company on closing of this acquisition is 16,971,974 shares.

HCVAS is in the business of commercializing its patented Push-to-Talk over Cellular (PoC) technology and Biometric fingerprint technology in car security system. Its proprietary PoC technology reportedly has one of the shortest time lags in two-way "walkie-talkie" communication. HCVAS's fingerprint biometric technology is being licensed to a manufacturer which distributes the car security system through a network of dealers in China, South East Asia, United States, Europe and Middle East.

About Yangtze Telecom Corp.

Yangtze Telecom Corp. conducts its business via two operating subsidiaries - NBC Co. Ltd. based in Ulaanbaatar, Mongolia and Hunchun VAS Technology Company Ltd. based in Jilin, China. In NBC, the Company operates a wireless digital TV network and offers TV subscription service in Ulaanbaatar. In HCVAS, the Company licenses technologies in biometric fingerprint car security system and Push-to-talk (PTT) handsets.

For further information on Yangtze Telecom Corp., please visit the Company's web site at www.yangtzetelecom.com.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of, the contents of this press release.

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