China Mobile, Phoenix Team

China Mobile and Phoenix announced a strategic alliance to jointly develop, market and distribute media applications

June 12, 2006

1 Min Read

HONG KONG -- China Mobile Limited (“China Mobile”) andPhoenix Satellite Television Holdings Limited (“Phoenix”) announced today astrategic alliance to jointly develop, market and distribute wireless content, products,services and new media applications.

The announcement follows the purchase of a 19.9% interest in Phoenix from STARGroup Limited (“STAR”) by China Mobile (Hong Kong) Group Limited, China Mobile’sholding company. After the transaction, STAR will continue to hold 17.6% of Phoenix.Under the strategic alliance agreement, China Mobile and Phoenix will jointly developproducts and services relating to the wireless delivery of media content. In exchangefor direct access to China Mobile’s network and customer base on favourable terms,China Mobile will have preferential access to Phoenix’s news and selected programs.The deal will complement China Mobile's 3G strategies by widening its serviceofferings and providing enhanced media content to its mobile subscribers, and willbroaden Phoenix’s new media content’s access to China mobile’s customer base.Wang Jianzhou, Chairman and Chief Executive Officer of China Mobile, said,“Phoenix offers a unique set of content to the Chinese community globally. Byleveraging Phoenix’s media content via our mobile platform, China Mobile will be wellpositioned to provide wireless multimedia services to our customers.”

Liu Changle, Chairman and Chief Executive Officer of Phoenix, said, “I am verypleased that we have established this strategic partnership with a world-class mobiletelecommunications operator, such as China Mobile. The establishment of this newstrategic alliance will provide an excellent opportunity for the further development ofPhoenix's new media business, and should have a very positive impact on Phoenix'slong-term commercial prospects, enabling Phoenix to distribute its content throughChina Mobile's wireless platform and reach a broader market.”

China Mobile Ltd. (NYSE: CHL)

Phoenix Technologies Ltd. (Nasdaq: PTEC)

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