TechFaith and aigo Sign Strategic Cooperation Agreement for the Operator Tailored Market in China: Financial News

TechFaith and aigo Sign Strategic Cooperation Agreement for the Operator Tailored Market in China
Monday September 22, 2008 8:37 am ET

BEIJING--(MARKET WIRE)--Sep 22, 2008 -- China TechFaith Wireless Communication Technology Limited (CNTF - News), an original developed product (ODP) provider focused on research and development of mobile phone solutions, and aigo, a leading brand in digital product markets in China, today announced their strategic cooperation agreement for the operator tailored market in China. Under the terms of the agreement, TechFaith will provide total solutions products, including CDMA1X/EVDO and UMTS/HSDPA, under the aigo brand name and through aigo's sales channels for operator tailored market in China.

TechFaith and aigo also announced that aigo has won a bid from a large operator in China for the procurement of CDMA phones, the delivery of which is expected in the fourth quarter 2008.

Wilson Cai, Deputy Chief Executive Officer of TechFaith said, "Aligning with aigo combines the market advantages of both companies and provides the Chinese market with great products under a well-known brand name. Diversifying our product offering with aigo, through their sales channels, solidifies our market position in the highly competitive mobile phone market and provides compelling value to our customers."

Mr. Cai continued, "We are excited about our collaboration with aigo, as we believe the demand for operator tailored mobile phones in China will remain robust even after the telecom industry reform. TechFaith has enormous operator tailored market experience for a large range of wireless technologies, such as CDMA/EVDO and UMTS/HSDPA. We see the successful bid as the first step to uncover China's market potentials. Our R&D capabilities, rich experience and ability to provide an enriched customer experience complements aigo's strong brand name and enables us to further capitalize on the potential in China."

Feng Jun, President of aigo said, "Our collaboration with TechFaith is an amazing opportunity for us and we are confident that it will be successful. Based on TechFaith's mobile phone technology, their operator tailored market experience and the reliability of our sales and marketing teams, we believe that aigo will become a well-known mobile phone brand in the near future."

About TechFaith

TechFaith (CNTF - News) is an original developed product provider focused on research and development of mobile phone solutions. Based in China, TechFaith employs approximately 700 professionals, of whom approximately 90% are engineers. 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) Window based smartphone and Pocket PC phone; and (3) handsets with interactive online gaming and professional game terminals with phone functionality.

With the capability of developing 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 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

About aigo

Founded in 1993, Huaqi Information Digital Technology Co. Ltd. currently employs over 1900 employees in more than 17 nationwide branches and 5 overseas subsidiaries. This dedicated team has developed the aigo brand into a leader in many of China's technology markets.

The aigo product line boasts:

 
--  aigo MP4 players that became the number-one seller in the domestic
    market within a year of release
--  aigo RMVB-compatible MP5 players, setting new industry standards
--  aigo portable storage devices that have led the domestic market in sales
    for the past 8 years
--  aigo digital cameras, the only Chinese digital camera brand still in the
    market
--  aigopen designated as the exclusive guide system for the Traveling
    Olympic Exhibition

Behind the wheel with Vodafone McLaren Mercedes, aigo raced into the Formula 1 World Championships in 2007. aigo ranked among the Top 10 in Margaux Matrixs' Brand Exposure Index for this event, remarkable for the first Chinese brand to sponsor a F1 team.

In addition to these achievements, aigo became the first Chinese technology brand to contribute to the International Olympic Museum in Lausanne.

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" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith 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, TechFaith's limited operating history, TechFaith's ability to retain existing or attract additional domestic and international customers, defects in TechFaith's designs resulting in claims against the company and a loss of customers, TechFaith's exposure to product liability or product recall and its limited insurance coverage, TechFaith's earnings or margin declines, continuation of its net losses and inability to return to profitability, failure to compete against new and existing competitors, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, and other 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.