TCL Communication Announces April Handsets and Other Products Shipments up 23% YOY

Devoted to Product Research and Development

Sustained Growth in Sales Momentum

HONG KONG, May 12, 2011 /PRNewswire-Asia/ -- TCL Communication Technology Holdings Limited ("TCL Communication" or the "Company", together with its subsidiaries referred to as the "Group"; HKSE stock code: 02618) today announced its unaudited handsets and other products shipment figures for April and the first four months of 2011.

During April 2011, the Group continued to achieve good growth in handsets and other products shipments. The handsets and other products sales totaled 3,375,157 units during the month, up 23% from the corresponding period of the previous year. Of this total, 2,957,476 units were sold in overseas markets and 417,681 units were sold in the PRC, representing year-on-year increases of 23% and 19% respectively. For the first four months of this year, the cumulative sales volume of handsets and other products rose 42% year-on-year to 12,090,083 units, with the sales volume in overseas markets increasing by 46% from the corresponding period of the previous year.

The Group was able to sustain growth in the sales momentum of its handsets and other products in April and the first four months of the year because of the following four growth drivers, that is: its continuing geographical expansion plan, the continued success of its "Step-up" product strategy, stronger brand development initiatives in the open market, and its synergistic development strategy of matching up its Original Design Manufacture ("ODM") business with its core business.

Since the beginning of this year, the Group has been committed to strengthening its brand building efforts by enhancing the brand recognition of two key brands, ALCATEL ONE TOUCH and TCL. Being one of the key sponsors of the 2011 Tour de France, which will be held in the second quarter of the year, the Group has proactively carried out marketing activities to enhance the awareness of its brands. In addition, the Group is committed to strengthening its research and development, and exploring into new product areas. All of these initiatives have been making good progress. Since the beginning of April 2011, the Group has successfully further enriched its product mix. Apart from mobile phones and accessories such as data cards, the Group's diversified product mix now also includes tablets, fixed-line products and other wireless access/transmission equipment products. The sales of aforesaid new products presently is still in the stage of market development, and the Group will continue to develop new products so as to meet evolving market demands.

In addition, the Group has further capitalized market opportunities in the PRC for expanding the business and achieving new breakthroughs. After strategically cooperating with China Union Pay ("CUP") to launch a variety of "CUP-Online" payment phones, the Group recently introduced the TCL NFC ("Near Field Communication") payment mobile phone in the "China Mobile E-commerce Annual Meeting" in Chengdu on 28 April 2011 as well. As this product is able to perform payment functions even under power off or talking mode, it can offer more convenient payment service to mobile phone users anywhere anytime. The Group believes that the launch of TCL NFC payment mobile phones is an extremely important step to quickly seize market opportunities in the internet era, which also made the Company one of the first movers to cooperate with CUP to launch the NFC mobile phones.

With regard to its R&D initiatives, the Group plans to enhance its R&D investment in Android-based smart phones, while spending more resources on the development of mobile internet applications and market consolidation. On 10 May 2011, the opening of TCL Communication Chengdu R&D Centre represents a further improvement in terms of the Group's strategic planning of its R&D development around the globe. On the same day, the Group signed a partnership agreement with the University of Electronic Science and Technology of China to create a jointly-run R&D centre that will reinforce the cooperation between the two parties. TCL Communication Chengdu R&D centre will focus on the development, testing and maintenance of Andriod-based platform and application software, and will lay a solid foundation for further strengthening of the Company's capability in developing 3G smart phone and intelligence systems. This new centre, together with the TCL Ningbo R&D Centre that was opened at the beginning of the year, will also further enhance the Group's R&D capability in developing high-tech terminals, like NFC mobile phones.

Dr. Guo Aiping, Chief Executive Officer of TCL Communication said, "The Group's robust sales growth in the first four months of 2011 was in line with expectations, and has demonstrated the successful execution of our product development, brand building and geographical expansion strategies, which together will enable the Group to maintain sustained and stable growth. In addition, the Group has just seized new business opportunities by becoming one of the first movers in launching NFC mobile phones with CUP. We also expect to achieve further breakthroughs in the PRC market, which in turn will create greater value for the Group. The opening of the TCL Communications Chengdu R&D Centre demonstrates that the Group is committed to continuing to enhance R&D capabilities and to further improve the strategic planning of our R&D development around the globe so as to enhance future business growth."

Handset and Other Products Sales Volume (Unaudited Data)

Sales volume data is also available at the Company's website: http://tclcom.tcl.com.

About TCL Communication

TCL Communication Technology Holdings Limited (stock code: 02618), together with its subsidiaries design, manufacture and market an expanding portfolio of mobile and internet products worldwide under two key brands - TCL and ALCATEL ONE TOUCH. The Group's portfolio of products is currently sold in the PRC and over 120 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific. TCL Communication operates its highly efficient manufacturing plants and R&D centres in various provinces of the PRC with headquarters in Shenzhen, China. For more information, please visit its website at http://tclcom.tcl.com .

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