Indonesian Based Integrated Media Company to Purchase Stake in Linktone

    SHANGHAI, China, Nov. 28 /Xinhua-PRNewswire/ -- Linktone Ltd. (
 LTON), a leading provider of interactive media and entertainment products
 and services to consumers in China, announced today that it has entered
 into a definitive agreement with PT Media Nusantara Citra ("MNC"), an
 Indonesia based, publicly-listed integrated media company, under which MNC
 will purchase not less than 51% of Linktone's outstanding shares using a
 combination of a tender offer for existing American Depository Shares
 ("ADSs") and subscription for newly issued ordinary shares. The price
 offered by MNC is US$0.38 per ordinary share (or US$3.80 per ADS),
 representing a 53.8% premium over Linktone's closing price of US$2.47 per
 ADS on November 27, 2007. MNC is the largest and only integrated media
 company in Indonesia with business operations in content production,
 content distribution worldwide, free-to-air television networks, 24-hour
 program TV channels, newspaper, tabloid, radio networks and online media.
 
     The tender offer will be to purchase up to 6.0MM ADSs, representing
 60.0MM ordinary shares, or approximately 25% of the total shares
 outstanding. MNC will subscribe for up to 252.0MM ordinary shares but not
 less than 180.0MM ordinary shares, representing not less than 51% of total
 shares outstanding at the close of the subscription and tender offer.
 Again, both the tender offer and subscription have the same price of
 US$0.38 per ordinary share (or US$3.80 per ADS).
 
     MNC will finance the transaction using cash reserves. The transaction,
 including the launching of a tender offer, is subject to approval by
 Linktone shareholders, and is subject to other customary closing conditions
 including approval by government and regulatory authorities. The
 transaction is expected to close in the first quarter of 2008.
 
     Mr. Michael Li, Chief Executive Officer, commented, "This strategic
 transaction represents a milestone in our Company's development. The
 increases to our cash balances will enable aggressive execution and
 implementation of our cross media strategy. Together, our companies will
 have a major opportunity to pursue advertising and WVAS cross-selling
 initiatives both in China and other Asian countries. MNC has built a strong
 integrated media platform, and Linktone's distribution channels combined
 with its wireless customer base offers a strong value proposition for MNC."
 
     Mr. Hary Tanoesoedibjo, Group CEO of MNC, said, "Linktone, as a
 strategic partner, represents a highly attractive value proposition for
 MNC, and MNC is committed to transforming Linktone into a leading,
 diversified regional media player for three key reasons. Firstly, we
 believe the Chinese media market has many similarities to emerging markets,
 such as Indonesia, in terms of the level of fragmentation, but more
 importantly, in terms of the enormous potential for development and growth.
 We have identified a number of areas where we can leverage our own
 experience and relationships to drive content and advertising sales,
 enabling Linktone to capture a leadership position in one of the most
 important media markets in the world. Secondly, Linktone's advanced
 capabilities in mobile content provide a strong platform for MNC to
 establish a dominant position in the WVAS sector in Indonesia and an
 ability to expand into 'new media' market opportunities throughout Asia.
 Finally, we believe that this partnership represents not only a compelling
 cross-media platform, but one of the first genuinely credible efforts to
 create a regional cross-media player in some of the most exciting markets
 in Asia."
 
     ABOUT LINKTONE LTD.
 
     Linktone Ltd. is one of the leading providers of wireless interactive
 entertainment services to consumers and advertising services to enterprises
 in China. Linktone provides a diverse portfolio of services to wireless
 consumers and corporate customers, with a particular focus on media,
 entertainment and communications. These services are promoted through the
 Company's and our partners' cross-media platform which merges traditional
 and new media marketing channels, and through the networks of the mobile
 operators in China. Through in-house development and alliances with
 international and local branded content partners, the Company develops,
 aggregates, and distributes innovative and engaging products to maximize
 the breadth, quality and diversity of its offerings.
 
     For more information, please visit http://www.linktone.com, or contact
 Edward Liu at Edward.liu@linktone.com
 
     ABOUT MEDIA NUSANTARA CITRA TBK
 
     With operations encompassing from content production, content
 distribution, nationwide television networks, television program channels,
 newspaper, tabloid, and radio networks, MNC is the largest and only
 integrated media company in Indonesia. Future development will include
 acquisition and consolidation of Pay TV business to complement our content
 distribution activities. Our content library is the largest in Indonesia,
 comprising of entertainment and news content, which is increasing by more
 than 10,000 hours yearly. These contents are being accumulated from
 in-house productions, outsourced and from the operations of our multi-media
 platforms.
 
     For more information, please visit http://www.mncgroup.com or contact
 David Audy at david.audy@mncgroup.com
 
     JOINT CONFERENCE CALL
 
     Linktone management plans to host a conference call to discuss its
 third quarter 2007 financial results and discuss the Company's latest press
 release regarding a strategic investment by Media Nusantara Citra "MNC" at
 9:30 a.m. Eastern Time on November 28, 2007 (6:30 a.m. Pacific Time on
 November 28, 2007 and 10:30 p.m. Beijing/Hong Kong Time on November 28,
 2007). The dial-in number for the call is 800-240-2430 for U.S. callers and
 303-262-2140 for international callers. Chief Executive Officer Michael Li
 and Chief Financial Officer Colin Sung will be on the call to discuss the
 quarterly results and highlights and to answer questions from participants.
 A replay of the call will be available through December 11, 2007. To access
 the replay, U.S. callers should dial 800- 405-2236 and enter passcode
 11103658#; international callers should dial 303- 590-3000 and enter the
 same passcode.
 
     NOTICE TO INVESTORS:
 
     This announcement is neither an offer to purchase nor a solicitation of
 an offer to sell securities by any person. The offer for the outstanding
 shares of Linktone described in this announcement has not commenced. Any
 offers to purchase or solicitations of offers to sell will be required to
 be made pursuant to offer documents filed with the U.S. Securities and
 Exchange Commission (the "SEC") in accordance with U.S. securities laws.
 
     The offer documents required under U.S. laws, including Linktone's
 recommendation statement, will contain important information, and
 shareholders and potential investors are urged to read them carefully when
 they become available before making any decision with respect to any offer.
 Those materials will be made available to all shareholders of Linktone at
 no expense to them on the SEC's website (http://www.sec.gov).
 
     FORWARD-LOOKING STATEMENTS
 
     This press release contains statements of a forward-looking nature.
 These statements are made under the "safe harbor" provisions of the U.S.
 Private Securities Litigation Reform Act of 1995. You can identify these
 forward- looking statements by terminology such as "will," "expects,"
 "anticipates," "future," "intends," "plans," "believes," "estimates," and
 similar statements. The accuracy of these statements may be impacted by a
 number of business risks and uncertainties that could cause actual results
 to differ materially from those projected or anticipated, including risks
 related to: current or future changes in the policies of the PRC Ministry
 of Information Industry and the mobile operators in China or in the manner
 in which the operators enforce such policies; the risk that other changes
 in Chinese laws and regulations, or in application thereof by other
 relevant PRC governmental authorities, could adversely affect Linktone's
 financial condition and results of operations; the risk that Linktone will
 not be able to compete effectively in the wireless value-added services
 market in China for whatever reason, including competition from other
 service providers or penalties or suspensions for violations of the
 policies of the mobile operators in China; the risk that Linktone will not
 be able to develop and effectively market innovative services; the risk
 that Linktone will not be able to effectively control its operating
 expenses in future periods or make expenditures that effectively
 differentiate Linktone's services and brand; and the risks outlined in
 Linktone's filings with the Securities and Exchange Commission, including
 its registration statement on Form F-1 and annual report on Form 20-F.
 Linktone does not undertake any obligation to update this forward-looking
 information, except as required under applicable law.
 
 

     For more information, please contact:
 
     Investor Relations
     Edward Liu
     Linktone Ltd.
     Tel:   +86-21-6361-1583
     Email: edward.liu@linktone.com
 
     Brandi Piacente
     The Piacente Group, Inc.
     Tel:   +1-212-481-2050
     Email: brandi@thepiacentegroup.com
 
 

SOURCE Linktone Ltd.