BEIJING, Oct. 19, 2009 (Marketwire) --
BEIJING -- (Marketwire) -- 10/19/09 -- China Techfaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith") today announced its signing of agreements with Chinese mobile phone branding companies aigo, Doov, AMT, QiGi and Flyfot. Under the agreements, TechFaith, through its wholly-owned gaming subsidiary 798 Entertainment Limited ("798 Entertainment," formerly known as One Net Entertainment Limited), will provide game content services to these Chinese mobile phone branding companies. These mobile phone branding companies will build the game contents provided by 798 Entertainment into their mobile phones. In addition to the built-in games, mobile phone users can also download other 798 mobile phone games after purchasing such mobile phones. The mobile phone branding companies will pay service fees to 798 Entertainment. The mobile phone customers can play the built-in and other downloaded games free of charge, and will be charged additional fees when they purchase accessories for the games.
Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "The agreements further confirmed our view that there will be an increasing convergence of mobile phone contents and handsets as mobile network operators and mobile handset branding companies seek to better differentiate themselves for a competitive advantage. We believe that with increasing 3G network penetration in China, mobile phone games will enter a period of fast development. Consumer demand for content-rich mobile handsets is driving the convergence trend, which we expect will result in a premium valuation being placed on contents. Given the considerable opportunity in content development, our gaming development teams will continue to focus on designing new games for our partners."
About TechFaith
TechFaith (NASDAQ: CNTF) is a China-based original developed product provider focused on the original design and sales of mobile phone products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited. 798 Entertainment Limited currently engages in providing self-developed as well as co-developed and licensed cell phone contents. TechFaith employs approximately 700 professionals, of whom approximately 90% are engineers.
-- TechFaith engages in the development and production of middle to high
end handsets and tailor made handsets.
