Hotgate Signs Important Agreements with China Telecommunication Operator/Agency

SHANGHAI, Jan. 10, 2011 /PRNewswire-Asia-FirstCall/ -- Hotgate Technology, Inc. (OTC Bulletin Board: HTGT) wishes to announce that REDtone Telecommunications (Shanghai) Ltd ("REDtone China"), a wholly-owned subsidiary of Hotgate, has entered into an agreement with China Unicom ("Agreement Unicom") in August 2010 for the reload of Unicom mobile prepaid air time in Shanghai and another agreement with Yi Qiao ("Agreement YQ") for reload of China Mobile's prepaid air time.

In line with REDtone China's further expansion into reload business and to leverage on its 38,000 dealers' channels, REDtone China has, via Agreement Unicom, offered reload of Unicom mobile prepaid air time in Shanghai.  The total number of Unicom mobile users in China is approximately 165 million users with estimated monthly reload amount of RMB20 per user.

Under the Agreement Unicom, it provides that REDtone China acts as the authorized reselling dealer for China Unicom (Shanghai Division) for the sales of China Unicom mobile prepaid air-time. For each prepaid airtime sold by REDtone China, China Unicom will pay REDtone China commission based on a certain percentage on the face value of the mobile prepaid airtime. REDtone China shall then sell the prepaid air-time to its existing dealers' channel for a margin.  The minimum monthly commitment is 10,000 pieces of mobile prepaid air-time.  

To complete the offerings of mobile reload, REDtone China has worked with Yi Qiao via Agreement YQ on November 24, 2010 for the marketing of China Mobile's mobile prepaid air time in Shanghai. China Mobile has the largest number of mobile users in China which is approximately 579 million users and it represents approximately 70% of the total mobile users in China.

Yi Qiao is one of the top four agencies directly engaged by China Mobile for their mobile prepaid air-time reload business in Shanghai. As provided in the Agreement YQ, REDtone China will be the authorized first class resale dealer for Yi Qiao for the sales of China Mobile's mobile prepaid air-time.  Under the Agreement YQ, REDtone China is entitled to free mobile prepaid airtime which is computed based on a certain percentage of the monthly mobile prepaid airtime sold by REDtone China.

About HOTGATE TECHNOLOGY, INC

Hotgate Technology, Inc. (OTC Bulletin Board: HTGT), is principally involved in the business of offering discounted call services for consumers and corporate market segment in Shanghai.  Partnering with China Tie Tong (Shanghai Division), one of the key fixed line telecommunication operators in China, REDtone China has offered discounted call services to consumers in Shanghai since Jan 2006. To date, total registered customer base for its consumer market segment is approximately 2.4 million users with average monthly call charges of approximately RMB 8 million.

SOURCE Hotgate Technology, Inc.