BEIJING, Nov. 9 /Xinhua-PRNewswire/ -- Hurray! Holding Co., Ltd.
(Nasdaq: HRAY), a leader in wireless music distribution and other wireless
value-added services, artist development and music production, and wireless
value-added services management software in China, today announced the
signing of definitive agreements to acquire a 30% equity interest in Beijing
New Run Entertainment Co. Ltd., a leading independent record label in China.
(Logo: http://www.prnasia.com/sa/200611091912.jpg )
New Run Entertainment specializes in music production and distribution
for its portfolio of artists which include some of the most popular singers
in China, such as Pang Long, Nanhe Beidou, Chang Hai, Da Mai and Han Dong.
Many songs produced by New Run Entertainment and its artists, such as "Liang
Zhi Hu Die (Two Butterflies)" and "Ni Shi Wo De Mei Gui (You Are My Roses) ",
were not only top hits in ringtones, ringback tones and full track downloads
on mobile phones in China, but also ranked Number 1 on Baidu’s music search
platform and China Mobile’s wireless music board.
In the acquisition, Hurray! will invest a total of $2.25 million in cash
for a 30% equity interest of New Run Entertainment. The consideration payable
by Hurray! and the respective ownership interests of the parties in New Run
Entertainment are subject to adjustment based on 12 months financial
performance of New Run Entertainment following the close of the acquisition.
The transaction is expected to be accretive to Hurray!’s earnings. Hurray!
currently expects the transaction to close before December 31, 2006, subject
to certain regulatory approvals and customary closing conditions in China.
Commenting on this acquisition, QD Wang, Chairman and Chief Executive
Officer of Hurray!, said, "We are very pleased to announce this strategic
partnership with New Run Entertainment, a premium record label in China with
strong track record. This further enhances our market leadership in music
content and production capabilities, and takes us one step closer toward our
goal of becoming a leading digital entertainment house in China."
China eCapital served as financial advisor to Hurray! in the transaction.
About Hurray! Holding Co., Ltd.
Hurray! is a leading provider of music and music-related products such as
ringtones, ringback tones, and truetones to mobile users in China through
SMS, IVR, RBT, WAP, MMS and Java wireless value-added services platforms over
mobile networks and through the Internet. The company also provides a wide
range of other wireless value-added services to mobile users in China,
including games, pictures and animation, community, and other media and
entertainment services.
In addition, Hurray! is a leader in artist development, music production
and offline and online distribution in China through its majority controlled
record labels Huayi Brothers Music and Hurray! Freeland Music.
Hurray! also designs, develops, sells and supports a service provisioning
and management software for mobile operators in China to manage wireless
value-added services.
About Beijing New Run Entertainment Co., Ltd.
Beijing New Run Entertainment Co., Ltd.("New Run Entertainment") is one
of the leading domestic record labels in China, which focuses on music
development and production and record distribution, as well as the agency
business for its artists.
Forward-looking Statements
This press release contains statements of a forward-looking nature. These
statements are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these forward-
looking statements by terminology such
as "will," "expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. The accuracy of these statements may be
impacted by a number of business risks and uncertainties that could cause
actual results to differ materially from those projected or anticipated,
including: the risk that this or any future acquisition will not create the
operational and financial results that Hurray!’s management and board of
directors expects, including in particular the possibility that this
acquisition may not be accretive to earnings in any future period or that
Hurray! may not become a leading digital entertainment house in China; the
risk that Hurray! will not be able to effectively manage the artists employed
by its music businesses or effectively utilize their libraries of music; the
risk that this and any future acquisition could divert management’s
attention from Hurray!’s operations, which could adversely affect its
results of operations; and the risks outlined in our filings with the
Securities and Exchange Commission, including our registration statement on
Form F-1. We do not undertake any obligation to update this forward-looking
information, except as required under applicable law.
