TechFaith Management to Invest RMB 50 Million in Games Subsidiary

 BEIJING, Oct. 5 /PRNewswire-Asia/ -- China TechFaith Wireless Communication Technology Limited (Nasdaq: CNTF) ("TechFaith") today announced that 132 TechFaith employees, including directors and senior managers (the "Investors"), will invest a total of RMB 50 million in the company's games subsidiary, 798 Entertainment Limited ("798 Entertainment").  After the investment, 798 Entertainment will have a total market valuation of US$105 million; the Investors will own approximately 7.0% of the 798 Entertainment, while TechFaith will own 63.0%, Infiniti Capital Limited will own 21.8% and IDG-Accel China Growth Fund II L.P. and IDG-Accel China Investors II L.P. (the "IDG Funds") together will own 8.2%.

Mr. Defu Dong, Chairman and CEO of TechFaith and CEO of 798 Entertainment, said, "This investment reflects the high optimism and confidence our management team has in our games business strategy and future success. In addition, this direct investment in 798 Entertainment by our employees will further motivate our employees to achieve higher performance levels, as they will directly benefit from the success of 798 Entertainment."

Mr. Dong added, "With our games business now divided into three branches, we have a streamlined, focused operational structure: 798 Game focuses on the development of PC online games and publishing; 798 Anytime Online (formerly called 798 Mobile) focuses on the development of mobile phone games and 17 Wee focuses on the motion game business.  All three are building and developing a catalog of games titles and working on some exciting innovations.  Our goal is to build a strong catalog of games titles in each of the three above areas.  This will give us the necessary platform to attract the sizeable universe of gamers needed to drive games revenue growth and profitability on a sustained basis."

About TechFaith

TechFaith (Nasdaq: CNTF) is a China-based original developed product ("ODP") provider focused on the original design and sales of mobile phone products. TechFaith aims to become a branded mobile phone specialist in differentiated market segments in the China market. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited.

  • TechFaith engages in the development and production of mid- to high-end handsets and tailor made handsets.  TechFaith's original developed products include: (1) multimedia phones and dual mode dual card handsets of multiple wireless technology combinations, such as GSM/GSM, GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones; and (3) handsets with interactive online gaming and professional game terminals with phone functionality.
  • With the capability of developing Middleware Application MMI/UI software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication technologies, TechFaith is able to provide Middleware Application MMI/UI software packages that fulfill the specifications of handset brand owners and carriers in the global market. For more information, please visit
  • TechFaith is aiming to become a branded mobile phone specialist for differentiated market segments in the China market, such as under its wholly-owned subsidiary brand name QIGI for smartphone business which targets enterprise users and operator tailored market, under Glomate brand, selling other brand names for girls and teenagers, under the TechFace brand name to target the market of outdoor sports enthusiasts.
  • TechFaith is targeting both the mobile and online PC gaming markets through its websites and with gaming content developed internally, co-developed and licensed from third parties.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith and management quotations contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.



In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
Source: Techfaith Wireless Communication Technology Ltd.
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