DBA Announces the Full Redemption of All Outstanding Convertible Bonds due in 2012

Solid Financial Position Boosts the Dual Development ofIntelligent Self-service and Information Technology Businesses

HONG KONG, Jan. 26, 2012 /PRNewswire-Asia/ -- DBA Telecommunication (Asia) Holdings Limited ("DBA" or the "Group") (Stock Code: 03335.HK) is delighted to announce that the Group has repurchased all of its outstanding convertible bonds due 2012 today. The 1% convertible bonds in the principal amount of RMB330,000,000 to be settled in US dollars were issued on 6 November 2007 and will be due in 2012.

The Group has repurchased all outstanding bonds by internal resources and the bonds will be cancelled. There would be no outstanding principal or interest payable on the bonds following the cancellation.

The Board stated that the Group will maintain a healthy and sound financial position after excluding the expenditure used to redeem all of the Bonds. The related transactions do not affect the Group's business development. As at 30 June 2011, the Group has total assets amounting to RMB1,987,000,000, including non-current assets of RMB529,000,000 and current assets of RMB1,458,000,000 while cash and cash equivalents amounted to RMB516,000,000.

Mr Yu Longrui, Chairman and Chief Executive Officer of DBA, said, "Our convertible bond repurchase underscores our optimism about the development prospects of the Group. With the modernization of Chinese society, the efficiency of business and social operations has been enhanced, which will in turn rapidly boost the development of convenient self-service electronic intelligence products. Moreover, we continue to pursue our dual development strategy. We continue to advance the development of the information technology business on one hand, while stepping up efforts in expanding the intelligent self-service business by adhering to our development strategy seen in our 'Wozhong e-Service' on the other hand. By doing so, we can capture the market opportunities and enhance the Group's core competitiveness in the industry."

DBA's core operations are intelligent self-service business and information technology business, which complement each other's strengths and create strong synergies.

The Group has established a presence in seven major cities within China in Fujian, Hubei, Shandong, Jiangsu and Sichuan Provinces as well as Beijing and Chongqing municipalities for its intelligent self-service business and has installed more than 8,000 self-service sales platforms in these cities. Its business scope has expanded from sales of pre-paid cards to recharging and self-service payment services. Building the "Wozhong e-service" brand and developing the "Wozhong Community Financial e-Service Platform," an intelligent payment service chain, has helped boost the growth of the Group's intelligent self-service business. In addition, the Group plans to introduce new services, including LED advertising, to the service platform. The Group is also extending its presence within the service industry by launching electronic payment and settlement services in collaboration with UnionPay E-Commerce Co., Ltd. and banks in the commercial sector. The Group already has installed an extensive network of more than 3,000 electronic payment service e-POS terminals delivering a terminal integrated telephone and financial e-payments service for more than 3,000 retail outlet customers in Fujian and other provinces. The Group is continuing efforts to deploy e-POS systems for additional major retail outlet customers thereby boosting the aggregate growth of the Group's intelligent self-service business.

Moreover, in the information technology business segment, the Group focuses on hardware development, software design, development of integrated technology solutions and their application, and the development of new technologies and products that can strengthen the integration of telecommunication technologies and industry applications. The intelligent self-service business can be divided into four big categories (1)intelligent electronic self-service equipment, intelligent EDC systems and e-POS; (2) FTTH products; (3) public telephone booths and electronic booths; and (4)intelligent water metres, gas metres and electronic control products that are certified by the Government.

For the six months ended 30 June 2011, the Group recorded a turnover of approximately RMB2,460,000,000, an increase of 59.4% over the last corresponding period. Gross profit amounted to approximately RMB295,000,000, a rise of 40.0% year-on-year. Profit attributable to shareholders amounted to approximately RMB172,000,000, a surge of 88.9% when compared with the last corresponding period. Basic earnings per share were RMB16.6 cents, an increase of 88.9% year-on-year.

About DBA Telecommunication (Asia) Holdings Limited (HKSE stock code: 03335.HK)

Established in 1997, DBA Telecommunication (Asia) Holdings Limited specialises in the development of intelligent self-service business and the information technology business. The intelligent self-service business segment accounted for approximately 80% of the Group's total turnover, with projects comprising construction of intelligent self-payment service networks platform across major cities in China; sales of varies stored value cards for communication; e-payment service; and collaboration with China UnionPay to provide e-POS service/terminals with integrated telephone and financial e-payment functions. The Information technology business accounted for approximately 20% of the Group's total turnover, covering three major product categories, namely development of city information devices; intelligent electronic equipment and systems; and FTTH optical fibre connection. With a nationwide marketing network and a strong R&D capability, the Group is implementing a development strategy integrating production, sales, and product and service development.

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