SOURCE: Zoom Technologies

October 16, 2009 09:34 ET

Zoom Technologies Enters Into Distribution Agreement With China Telecom

CDMA Phones to Be Sold Under Zoom's LEIMONE Brand Name

BEIJING--(Marketwire - October 16, 2009) - Zoom Technologies, Inc. (NASDAQ: ZOOMD) announced today that it has entered into a distribution agreement with China Telecom, one of China's three State-run mobile phone operators, for Closed Division Multiple Access (CDMA) phones to be sold into China Telecom's network. The CDMA handsets will be sold under Zoom's "LEIMONE" brand name.

Under the agreement, Zoom Technologies agreed to two models of its LEIMONE branded phones, LEIMONE 7100 and LEIMONE 2680, to China Telecom. Both products are CDMA 1X products with multimedia capabilities and customized applications for China Telecom. The Company has already started shipping these products into China Telecom sales network. Thus far, Zoom Technologies has delivered its LEIMONE phones to the Shanghai, Tianjin, Liaoning, Gangsu, Yunnan and Jiangxi Provinces.

Mr. Leo Gu, Chairman and CEO of Zoom Technologies, said, "We are extremely excited to have this agreement with China Telecom, one of the top mobile phone operators in China. The distribution of our LEIMONE mobile phones demonstrates our research and development capabilities and the strength of the LEIMONE brand name in China. We believe our alliance with China Telecom will continue to facilitate the expansion of our high-quality products in the China CDMA network and we believe our LM 7100 and LM 2680 phones have the potential to be very successful. The simple and elegant designs will appeal to the younger generation who favors fashionable designs and the sleek black and grey design presents a formal look for the business consumer. We are confident that these LEIMONE CDMA mobile phones will have excellent performance in the China market."

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 and also designs and manufactures its own brand of mobile phones under the Leimone brand.

Forward Looking Statements

This release contains forward-looking information relating to Zoom's plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including the risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.

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