Cogo Highlights High-End 3G Handset Design Wins with Coolpad Brand

SHENZHEN, China, Feb. 18 /PRNewswire-FirstCall/ -- Cogo Group, Inc. (Nasdaq: COGO), a leading platform services provider for the technology and industrial sectors in China, today announced it had secured design wins with Yulong Computer Telecommunication Scientific (Shenzhen) Co., Ltd. ("Yulong"), a wholly owned subsidiary of China Wireless Technologies Limited (HKSE:2369).  Cogo has secured design wins for customized modules within a number of Yulong's high-end TD-SCDMA handsets that are currently shipping. These modules will have a significantly higher average selling price ("ASP") than those found in Cogo's handset business due to expanded content, including CMMB, China's mobile TV standard.

Yulong is a leading handset manufacturer based in Shenzhen, China and operates under the popular brand, "Coolpad". In 2009, Yulong moved aggressively into manufacturing handsets with TD-SCDMA technology, China's 3G wireless standard.  As a key handset supplier to China Mobile, China's largest mobile operator with over 520 million GSM subscribers, Yulong expects its shipments to continue to increase throughout 2010 and 2011.

Cogo expects its relationship with Yulong to grow over time.  TD-SCDMA continues to roll out across China. China Mobile recently reported that only 3.4 million of its subscribers used TD-SCDMA services in December 2009, although this figure is expected to ramp materially in 2010. This expansion will be fueled by an increase in new 3G devices from a growing number of handset vendors. To meet growing demand, China Mobile has begun to update its product line to include more dual-mode TD-SCDMA/GSM phones and phase out some of its 2G-only (GSM) handsets.

Cogo's design wins can be found in Coolpad TD-SCDMA devices such as models F608 and F800.  Its customized module solution incorporates a series of IC chips, including CMMB, memory, power amplifier(s) and CPU from a number of leading global semiconductor players.  This level of integration experience and design work will be beneficial for Cogo as it works with other handset vendors in pursuing additional wins with Coolpad 3G models still in development.  

"We are delighted to partner with Yulong. 'Coolpad' has become a very popular and valuable handset brand in China, and we are excited about the growth opportunities that lie ahead," said Jeffrey Kang, CEO of Cogo.  "Yulong has an excellent relationship with all three wireless operators in China and is well positioned to capitalize on the increase in consumer demand for 3G handsets in the next couple of years.   We believe that our strong and growing relationship with Yulong will help to accelerate growth within our digital media business in 2010."      

About Cogo Group, Inc.:

Cogo Group, Inc. (NASDAQ: COGO) is a leading provider of customized module and subsystem design solutions in China. The Company believes it acts as a proxy to China's technology industry as it works with virtually all the major ODMs and OEMs in China. Cogo leverages these relationships and combines their IP to create designs that Cogo then sells to electronic manufacturers. These designs allow manufacturers to reduce their time to market for new products and ultimately increase sales. Cogo focuses on the telecommunications equipment, digital media and industrial applications end-markets for their customized design modules while also offering business and engineering services to their large telecommunications equipment vendor customers. Over the last fifteen years, Cogo has grown its customer list to include nearly 1,400 manufacturers across the telecommunications equipment, digital media and industrial applications markets, covering both multinational Chinese subsidiaries and Chinese domestic companies.

About China Wireless Technologies Limited:

Established in 1993 and listed on the Stock Exchange of Hong Kong in December 2004, China Wireless Technologies Limited (SEHK: 2369) is a leading developer and supplier of integrated wireless data solutions. Taking advantage of its expertise and knowledge in wireless communications, the Group provides integrated solutions mainly for various industry applications from back-end systems to wireless intelligent terminals with proprietary operating system for the telecom, government, securities brokerages, and other industrial and commercial sectors. The "Coolpad" brand developed by the Group has become Mainland China's most famous brand for Smartphone and high-end dual-mode Smartphone.

Safe Harbor Statement:

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our proposed discussions related to our business or growth strategy such as growth in mobile handset and digital media businesses and businesses with China Wireless Technologies and Yulong, which are subject to change. Such information is based upon expectations of our management that were reasonable when made, but may prove to be incorrect. All such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For further descriptions of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings,. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.

SOURCE Cogo Group, Inc.