SOURCE: Zoom Technologies

Zoom Technologies

July 12, 2010 08:00 ET

Zoom Technologies Announces $1.5 Million R&D Investment by Datang Capital Management

Datang Telecom - Initiator of the 3G TD-SCDMA International Standard Funds Intended for Further Handset Design & Innovation

BEIJING--(Marketwire - July 12, 2010) -  Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading China based manufacturer of mobile phones and other mobile electronic products, announced today that its mobile phone design subsidiary, Nollec Wireless, has signed a non-binding memorandum of understanding with Datang Capital Management (Beijing) Company, Ltd. ("Datang Capital") for an investment of Rmb 10 million (approximately US$1.5 million) from Datang Capital into Nollec Wireless. 

The cash injection is intended to be used for Nollec's further development of advanced mobile handsets and to expedite the commercialization of next generation features through the integration of user-friendly software applications with state-of-the-art hardware modules. Datang Capital is the investment company of Datang Telecom (Shanghai Stock Exchange: 600198), a Chinese telecommunication equipment vendor well recognized for its leading role in developing the Chinese TD-SCDMA 3G mobile telecommunications standard through subsidiary Datang Mobile. Terms of the investment are to be finalized in a definitive agreement.

Mr. Leo Gu, Chief Executive Officer of Zoom Technologies, said, "Datang's intended investment in our research arm is a significant endorsement of our R&D and manufacturing capabilities. We look forward to Datang's involvement as we continue our major technology innovation and product introductions to service the burgeoning China mobile market. We expect that Zoom will continue to outpace our competition to meet the customers' demand throughout China."

About Zoom Technologies
Zoom Technologies is a holding company with subsidiaries that engage in the manufacturing, research and development, and sale of electronic and telecommunication products for 3rd generation mobile phones, wireless communication circuitry, and related software products. Zoom Technologies' subsidiary, Jiangsu Leimone, owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers as well as its own brand under the brand name of Leimone. The company's products are both exported and sold domestically. For more information about Zoom Technologies please visit Zoom's corporate website at http://www.zoomleimone.com.

Forward-Looking Statements
Certain statements in this press release may constitute "forward looking statements" that involve risks and uncertainties. These include statements about our expectations, plans, objectives, assumptions or future events, including our expansion in other 3G enabled mobile phones and the acquisition of Leimone Culture, which may require shareholder approval that cannot be assured. You should not place undue reliance on these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed with the Securities and Exchange Commission. We undertake no obligation to publicly release revisions to these forward-looking statements to reflect future events or circumstances or reflect the occurrence of unanticipated events.

Contact Information

  • Contacts:
    Cynthia Hiponia
    The Blueshirt Group
    +1 415-217-4966
    Email Contact