VODONE Group Announces the Acquisition of 3GUU

BEIJING, Dec. 8, 2010 /PRNewswire-Asia/ -- VODONE Group announced the acquisition of 3GUU, one of China's leading mobile game developers for smart phones. By acquiring 3GUU, VODONE will own 70% of 3GUU shares and become the largest mobile game developer and operator in China in terms of the size of flow of income, the size of net profits, and active paying users of its own developed and operated mobile game products. VODONE will also build itself into the largest mobile game platform in China by obtaining the most complete set of mobile game publishing and business licenses.

VODONE will use a total of RMB196 million yuan to acquire 3GUU, including RMB 58.8 million yuan in cash and RMB 137.2 million yuan in consideration shares. The acquisition of 3GUU will enable VODONE to have the country's largest mobile game platform. As one of its major steps in building up its market leadership in smartphone games, VODONE will then  further consolidate and raise its revenues, profits as well as the coverage of mobile terminals and the number of paying customers.

After merging into VODONE, 3GUU will be able to continue to increase market share and profits, and guarantees that it will realize the continuous profit rises in the coming three years, an expected jump of profits from RMB 35 million yuan in 2011 to RMB 70 million yuan in 2013.

A mobile game marker leader based in Guangzhou, Guangdong Province, 3GUU is the first mobile game developer to obtain the Internet Publication Permit from the General Administration of Press and Publication of the PRC. It's principally engaged in the development and provision of mobile games for smartphones. It has a close business relationship with China Mobile, and has stable sales and resources channels.

Currently, the mobile game industry is experiencing rapid growth in the market, as more and more mobile internet users are playing mobile games. A market research report forecasts that the market for mobile games has reached RMB 1.8 billion yuan this year, a growth of 38.5 per cent compared with the previous year.

The acquisition will help VODONE Group to have an in-depth integration of the business chain for the mobile game industry. The Hong Kong-listed VODONE can benefit from the synergies of 3GUU's cooperation with VODONE's other two subsidiaries, which are Dragon Joyce Group, an international and professional mobile game developer and operator, and OWX HK, a telecommunication product developer engaging in developing, designing, and providing maintenance services for mobile communication products. VODONE will also be able to benefit from the synergies of these three subsidiaries in terms of mobile game development, game operating channels and access to the resources of mobile game users.

About VODONE

VODONE is a new media group. Founded in 2005, It is one of the few enterprises in China, that owns a complete set of licenses to operate video broadcasting on the Internet. VODONE owns the powerful broadcasting platform, and it has broadcast thousands of domestic and international political, economical, cultural and commercial activities over the Internet. VODONE is broadcasting China to the world and also the world to China. VODONE's major products, including "Lottery View" mobile lottery, "KKFUN" mobile games, and "Linfo" Internet social community, etc. have been well recognized by the public. VODONE is always committed to the development of new media chain, and to bringing business partners a wide and safe growth space. For more information, please visit the website www.v1.cn .

About 3GUU

3GUU was founded by a team of industry leaders who have many years of experience in technology development and operation in the mobile game industry. 3GUU focuses on the development and provision of mobile games. 3GUU is a close cooperating business partner and quality content provider of one of the world's largest mobile network operators (the "Major Operator"). 3GUU's mobile games have constantly ranked in first or second in the Major Operator's mobile game business. Its mobile game products have received various awards and recognitions from the industry.

SOURCE VODONE Group