Trunkbow Announces Framework Agreement with China Communications Services Corporation for Development of Data Center in Guangzhou

BEIJING, Aug. 13, 2012 /PRNewswire-Asia/ -- Trunkbow International Holdings Limited (NASDAQ: TBOW) ("Trunkbow" or the "Company"), a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in China, today announced that it has entered into a framework agreement with China Communications Services Corporation, Limited (Hong Kong Stock Exchange: 0552) ("CCSC") for the construction, management and operation of a cloud data center in Guangzhou, China. Construction on the facility began in the second quarter, with the first phase scheduled for completion by the end of 2012.

Through this data center, Trunkbow and its partners will offer hosted MPS and MVAS platform products to small and medium businesses under Software application as Service ("SaaS") and Platform application as Service ("PaaS") models. This is the Company's second such partnership, following the June 2012 agreement with Shanghai Telecommunication Engineering Co.

Under the agreement, Trunkbow will invest approximately RMB72 million (US$11.3 million) in the project, with CCSC to provide design and construction services and outsource the hosting, storage and data transmission infrastructure services to an experienced IDC operator. Trunkbow has secured a RMB72 million commercial loan to fund the development and initial operation of the facility. Once complete, the companies will offer a suite of Trunkbow-powered, cloud-based services including hosting, payment and security, as well as value-added services such as couponing, promotions and location-based services that will provide a one-stop MPS solution for M-commerce and point of sale-based transactions.

"We believe there is a tremendous, untapped market opportunity among China's 56 million small businesses who lack the resources needed to deploy a full-scale MPS offering, making hosted services such as these ideal for this large and under-served segment of the market. This second data center will allow us to effectively meet the needs of these merchants and positions Trunkbow to significantly expand our presence in the mobile payments arena among both merchants and consumers," said Mr. Qiang Li, CEO of Trunkbow. "During the construction process, we are working closely with our partners in both Guangzhou and Shanghai to market this new offering to prospective customers and help them understand the substantial value of our customizable, off-the-shelf MPS solution. This is an ideal, low-risk tool that will allow merchants to begin offering consumers the option of handset-based payments both online and at the point-of-sale. We are confident that the hosted services model will greatly expand the addressable market and enhance our merchant acquisition capabilities as we continue to drive the advancement of China's MPS market."

Under the revenue sharing agreement with CCSC, Trunkbow will receive a fixed percentage of the hosting fees paid by merchants for use of the cloud services, with minimum revenue guarantees of RMB 164 million (US$25.8 million) over the initial 20-year contract term. In addition, Trunkbow will receive transaction fees directly from merchants for the processing of payments on the hosted platform.

About Trunkbow

Trunkbow International Holdings (NASDAQ: TBOW) is a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in PRC. Trunkbow's solutions enable the telecom operators to offer their subscribers access to unique mobile applications, innovative tools, value-added services that create a superior mobile experience, and as a result generate higher average revenue per user and reduce subscriber churn. Since its inception in 2001, Trunkbow has established a proven track record of innovation, and has developed a significant market presence in both the Mobile Value Added and Mobile Payment solutions markets. Trunkbow supplies its mobile payment solutions to all three Chinese mobile telecom operators, as well as re-sellers, in several provinces of China. For more information, please visit www.trunkbow.com.

Safe Harbor Statement

This press release contains forward-looking statements that reflect the Company's current expectations and views of future events that involve known and unknown risks, uncertainties and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward looking statements involve known and unknown risks and uncertainties, including but not limited to uncertainties relating to the Company's relationship with China's major telecom carriers and its resellers, competition from domestic and international companies, changes in technology, contributions from revenue sharing plans and general economic conditions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. You should understand that the Company's actual future results may be materially different from and worse than what the Company expects. Information regarding these risks, uncertainties and other factors is included in the Company's annual report on Form 10-K and other filings with the SEC.

SOURCE Trunkbow International Holdings Limited