BEIJING, Sep. 30, 2009 (Marketwire) --

BEIJING -- (Marketwire) -- 09/30/09 -- China Techfaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith") and D Magic Mobile (Shanghai) Incorporation ("Dmagicmobile") today announced the formation of a joint venture company in China. The joint venture will be called Glomate Mobile (Beijing) Co., Ltd. ("Glomate"). Glomate plans to license well-known, international bands through Dmagicmobile for high-end, brand-name mobile phones that target fashion-conscious and high-end mobile phone users, teenagers and sports fans. Initial product launches are scheduled for the fourth quarter 2009. TechFaith is a China-based original developed product provider focused on the original design and sales of cellphone products. Dmagicmobile is a cooperative licensee with a number of renowned international brands in the mobile telecommunications sector, including Barbie(TM).

Mr. Defu Dong, Chairman and CEO of TechFaith, said, "This is an important development for TechFaith. Our approach since founding the company has been to use dedicated resources able to focus on unique market opportunities. We have successfully applied this model to our existing business. In the mobile phone business, we continue to drive growth in our ODP business and will now add on the new, Glomate business. Our ODP business will continue to focus on domestic and international brand name companies, and operators with mid- to high-end product offerings with flexible customization. We expect Glomate, will give us a vehicle to even better differentiate our mobile phone offerings in the marketplace. Unlike in other markets, in China carriers do not subsidize most consumer purchases of mobile phones. Most consumers in China decide what phone they want to spend their money on and then buy it. With potentially several thousand mobile phones to pick from, a well-known brand is a powerful competitive differentiator. Similar to watches, clothes and other products, consumers will be able to buy a mobile phone with a brand that they identify with from a lifestyle, image or goal standpoint. A brand, therefore, can prove to be far more powerful than a new technology, as technological developments are typically commoditized and adopted by all mobile phone developers. As we move forward, we expect our Glomate business will bring us additional, higher gross margin business opportunities."

Mr. Samuel Pang, Dmagicmobile's President and CEO, commented: "Today's announcement represents a significant milestone. Our partnership with TechFaith is a natural extension of both companies' prior relationship and successful track records. Dmagicmobile understands the complexities of the branded market and what is involved in bringing a profitable, successful brand to market as a mobile phone.