BEIJING, Dec. 15, 2010 /PRNewswire-Asia/ -- China TechFaith Wireless Communication Technology Limited (Nasdaq: CNTF) ("TechFaith" or the "Company") today announced the implementation of a major joint venture development project with the ShenYang PuHe New Town Administration Committee ("PuHe"). As part of the joint venture, TechFaith has undertaken to invest RMB 100 million in each of the years 2011 and 2012, while PuHe has undertaken to invest RMB 20 million in each of the years 2011 and 2012. In addition, PuHe has also agreed to provide up to RMB 10 million to TechFaith as an investment incentive. The joint venture entity, TecFace Sport Mobile Limited ("TecFace"), will be located in ShenYang, the largest city in Northeastern China. PuHe will have a 16.7% ownership interest in the joint venture, with TechFaith holding the remaining 83.3%.
TecFace represents a major capacity and capability expansion for TechFaith's sports mobile phone brand; its operations will be housed within a planned business complex in Shenyang that is scheduled to begin construction in 2011. The TecFace business complex is expected to contain an integrated state-of-the-art research & development, sales and distribution center along with testing labs to ensure adherence to China's national development standards.
Mr. Defu Dong, Chairman and CEO of TechFaith said, "It is an important step for our TecFace brand to co-invest with a business partner as supportive as PuHe. Our strategy will be to use the planned full TecFace facilities in Shenyang to accelerate the development of the TecFace brand as we strive to make it a major force in the attractive sports mobile phone segment."
ShenYang PuHe New Town Administration Committee is an extended division of the ShenYang City Government based in the northern district of the city of ShenYang. The committee has City-level economic administration rights and focuses mainly on regulating the area's telecommunication industry, high technology businesses, commercial businesses, culture and ecologically friendly residential living.
About TechFaith (NASDAQ:CNTF)
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 middle 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 combination 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 www.techfaithwireless.com.
- 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 motion, the mobile and online PC gaming markets through its websites www.17wee.com, www.798uu.com and www.798game.com 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.
SOURCE China TechFaith Wireless Communication Technology Limited