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Mtone Wireless launched new SMS game ¡°Love Message¡±

Beijing, July 11, 2005 ¨C Mtone Wireless and several major telecom companies co-launched a new Short Message System (SMS) game, ¡°Love Message¡±, in July, to coincide with the August release of the movie also named ¡°Love Message¡±.

This one-month game, in which players send love messages to ¡°1818¡±, was carried out by Mtone Wireless Communications, China Mobile, NEC and Sohu.com. According to the organizers, over 10,000 mobile phone users in China have announced their love through their mobile phones, since July 11th when the game officially started.

Among the thousands of love messages the game has received, many of them are plain and passionate. One says, ¡°I want your response so that our hearts can communicate with each other.¡± Another reads, ¡°My love for you is engraved on my bones and heart. I love you, my baby!¡±

Different from some previous similar games, ¡°Love Message¡± also help single players to find a match based on the type of messages they send, said Mtone Wireless.

The movie, starring actors from mainland, Hong Kong and Taiwan, tells audience a love story on China¡¯s urban youth, which centers on SMS of mobile phones.

On the movie¡¯s opening ceremony on July 26th, the leading actors selected their favorites from all the love messages the game received. Writers of these winning messages will receive the prizes such as NEC mobile phones.

The one Gu Juji liked the best reads, ¡°I think we are not suitable to each other as boy friend and girl friend, so do you want to become my wife instead?¡± And the one Reng Quan chose says, ¡°Falling in love with you bothers me. Hiding my passion worries me. Declaring my love makes me happy, and being refused by you will break my heart. I love you!¡±

Started in Silicon Valley in 1994, Mtone Wireless Communication Corporation is now a leading developer and provider of interactive entertainment and social networking value-added mobile services in China.

In 2003, Mtone Wireless unveiled a SMS interactive game named after a high-profile Chinese movie ¡°Cell Phone¡±, directed by the famous Chinese director, Feng Xiaogang, whose works also include the dual language comedy Big Shot¡¯s Funeral. Mtone Wireless charges a monthly fee of 8 RMB for the game.

It is estimated that China¡¯s SMS market is 25 times larger than its movie industry. According to the Ministry of Information Industry, China had 64.871 million new mobile phone subscribers in 2004.

According to Shanghai-based iReseach, the size of China¡¯s SMS market will reach 4.74 billion RMB by the end of 2005 and the total market size of wireless value-added service will be 11.07 billion RMB.

In 2004, Chinese mobile phone users sent 217.76 billion pieces of short message, up 58.8 per cent from the previous year, according to statistics released by the Ministry of Information Industry. The SMS services brought more than 21.7 billion RMB to China's information industry, as sending one short message costs 0.1 RMB in China.

Iresearch said, China¡¯s SMS market has increased at an annual growth rate of 80 per cent since the beginning of 21st century. From 2001 to 2002, only within a year, China Mobile¡¯s SMS market increased 700 per cent, and another major SMS operator, China Unicon¡¯s SMS market increased 233 per cent.

Mtone Wireless is also very confident in the future growth of China¡¯s SMS market. ¡°Voice is a commodity; you can only talk about eight hours a day,¡± said Victor Wang, CEO and President of Mtone Wireless. ¡°But for data it¡¯s unlimited. As our experience shows, your imagination ¡­ is your only limitation.¡±

Prior to ¡°Cell Phone¡±, Mtone Wireless witnessed the number of registered users of another SMS interactive game, known as ¡°Bubble Boy¡±, surpass 1 million, meaning that the company earned about 8 million RMB per month from the business.

Wang said, ¡°We anticipate continued strong profits for SMS messaging. For the younger generation, sending short messages has replaced making phone calls as the ¡®cool¡¯ way to communicate.¡±

¡°A new consumer demographic is emerging in China, known as ¡®data high end users¡¯, who spend a significant portion of their income on SMS. This demographic is growing rapidly and represents a significant revenue source for the mobile industry,¡± said Victor Wang.

As the pioneer of China¡¯s SMS and WAP services in late 1990s, Mtone Wireless now offers SMS subscription-based services to China¡¯s mobile market. The goal of the company is to reach every mobile phone user in China and become the largest mobile multi-user game and entertainment provider.

Other SMS products that Mtone Wireless currently offers include Popo Shinchan and City of Desire. The former, which charges 7 RMB per month, is a SMS game for entertainment. By means of Cartoon character Crayon Shinchan's humorous tone, it provides you with rich and funny functions.

The latter, City of Desire, with a monthly fee of 8 RMB, is a large interactive game combining functions such as entertainment, fun etc. The ultimate objective for the player is to get as many lovers and as few love rivals as possible.

Last October, Mtone Wireless launched its self-developed game, ¡°Legend of Three Realms¡±. This game is the world¡¯s first large-scale mobile online game. It attracted 150,000 registered users within four months after its official launch. In April this year, Mtone Wireless released an updated ¡°Legend of the Three Realms II¡±, which is supported by as many as 46 different handset models.

About the ¡°Love Message¡± and ¡°Cell Phone¡±

Further details on the games can be found at www.mtone.com, and www.mtone.com.cn.

About Mtone Wireless Corporation

Mtone Wireless Corporation is one of China¡¯s leading providers of wireless interactive entertainment services to mobile phone users in China. It specializes in providing multiple services including online multi-user gaming that drive customer to customer interactions including competition, socialization, communications, role playing all integrated into virtual environments and games. These capabilities support music, sports, humor, and other mobile entertainment applications.

Founded in Silicon Valley in 1994, Mtone Wireless has been a pioneer in China¡¯s mobile value-added services market and commercialized the first wireless stock trading system and mobile information services with China Telecom in 1998. Mtone Wireless has substantial technical experience and expertise to manage complex applications now characterizing the emerging applications. It has developed mobile applications services using WAP for information browsing, MMS for information transmission, interactive voice response (IVR) for voice and audio services and a series of multi-user games for K-java enabled handsets.

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