HONG KONG, Jan. 11 /PRNewswire-Asia-FirstCall/ -- The Company is pleased to announce that on 11 January 2010, VODONE Telemedia has entered into an exclusive strategic partnership agreement with Cmedia of Taiwan under a revenue sharing principle. Through cooperation with iPeer, to which Cmedia and MTK are shareholders, VODONE Telemedia becomes MTK's exclusive strategic partner in integrated mobile entertainment development in the Greater China region. An important purpose of this co-operation is to embed VODONE Telemedia's mobile lottery focused value-added services such as games, entertainment, music, video and wireless payment gateway, etc. into mobile chips manufactured by MTK.
iPeer is MTK's sole channel vehicle in entertainment and music value-added services in the PRC. MTK is an internationally renowned IC design house and it has a prominent position in the mobile handset market. The output of MTK's mobile chips for the year 2009 exceeded 300 million pieces; it is the second largest global mobile chips supplier. MTK is the market leader in the PRC's mobile chips market.
In the co-operation referred to above, Cmedia will be responsible for the platform's research and development, application layer, mobile client technology development, and marketing, while VODONE Telemedia will be responsible for providing an authorised lottery and entertainment value-added business and payment gateway system. Both parties will work closely with an aim to build up the largest mobile lottery and entertainment platform in the PRC.
This strategic co-operation is an important milestone to VODONE Telemedia, and an important strategic development to VODONE Telemedia's mobile business. VODONE Telemedia will therefore be in a position to embed its lottery business in new mobile handsets in a significantly massive volume in the PRC.
There are about 670 million mobile users in the PRC with a sales volume of about 200 million mobile phones per annum. Approximately 80% of the new mobile handsets could be embedded with VODONE Telemedia's mobile lottery business. Such is believed to have paved way for a substantial future business and earnings growth for VODONE Telemedia's mobile lottery business.
According to Dr. Zhang Lijun, Chairman of VODone, "The cooperation between VODone and Cmedia enables VODone to become a new media company with a competitive multimedia platform on a significantly massive number of new mobile handsets. This is a significant change, as this would bring about prominent cooperation between an innovative new media cooperation of Mainland China and high-tech companies of Taiwan. This will reach new boundaries in the cooperation between firms in Mainland China and Taiwan.
According to Mr. Zheng Qicheng, Chairman of Cmedia and iPeer, "The technological advantages and the qualification and local business advantages between Cmedia and VODone are very complimentary. The cooperation between us would bring about a new trend and concept to the mobile handset industry in the PRC."
As a result of the great advantages of the two companies, the cooperation between Cmedia and VODone is very important. Both companies have
well-respected backgrounds, and potential success can bring about enormous benefits and expectations to the market. Therefore, this cooperation is one that can be considered revolutionary and very meaningful in the development of the industry. It is expected that the first batch of mobile handsets containing mobile lottery, games and entertainment functions by VODone and Cmedia jointly will be launched in March this year.
About VODone Limited
VODone (http://www.vodone.com ) is currently the only Internet video broadcasting company listed in Hong Kong. The affiliated company of VODone -- VODone Telemedia -- is a State-owned Enterprise that owns the fullest set of qualifications and licenses in China's Internet broadcasting industry. It has also obtained the Information Network Communicated Audio-Video Program Licence, Internet News Permit, Value added Telecom Service Operation License, Internet Publication Permit and all other required licenses, ensuring itself a healthy development in the future.
China Welfare Lottery Center is responsible for monitoring and controlling the operations and purchasing of Welfare Lottery in the PRC, and the same as China Association of Social Workers, it is governed by Ministry of Civil Affairs of the People's Republic of China. VODone Telemedia is a State-owned Enterprise of the China Association of Social Workers; this ensures the reliability of VODone's lottery ticket sales distribution channel. VODone has signed a 50-year operational contract with VODone Telemedia, ensuring VODone Telemedia exclusively provide a series of telemedia services to VODone.
Och-Ziff Fund holds about 5.6% shareholding interest in VODone.
VODone IR website: http://ir.vodone.com
Background of Cmedia
Cmedia was established in 1991 and is a company listed on the Taiwan Over-the-counter market since April 2003 (stock code: 6237). It is the largest USB Audio IC/PCI multi-channel integrated chips supplier from Taiwan. The Company also specialises in the research and development of analog/digital mix mode and multimedia related hardware and software application products. Its main products include USB audio chips, PCI audio chips and Wi-Sonic. (http://www.cmedia.com.tw )
Background of iPeer
iPeer is in important investment for Cmedia in the area of digital music and multi-media platform. It is principally engaged in digital music,
multi-media entertainment services and platform. The company is also the sole channel vehicle in entertainment and music value-added services in the PRC. The investors of iPeer also include MTK. iPeer has invested in HIM (a leading music company in Taiwan), Kuro and ezPeer+.
Background of MTK
MTK is an internationally renowned IC design house, specializing in wireless communication and digital media technology etc. It provides chips with total solution packages to wireless communication, high-definition digital television, optical storage and high-definition DVD related products. The company has a leading status in the market of these products. The company was established in 1997 and is listed on the main board of the Taiwan Stock Exchange (stock code: 2454). The head office is situated in Taiwan with sales and research and development teams located in the PRC, United States, United Kingdom, Ireland, Denmark, India, Japan, Korea and Singapore. (http://www.mediatek.com )
This press release is distributed by Wonderful Sky Financial Group Limited on behalf of VODone Limited.