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Leading China handset provider Gionee taps Telegent to power mobile TV phones

Coincides with reports showing that free-to-air mobile TV is a “killer application” set to drive handset sales in 2008

(EMAILWIRE.COM, May 16, 2008 ) China - Telegent Systems, the company that makes television mobile with its high-performance single-chip mobile TV solutions, and Shenzhen Gionee Communication Equipment Co., Ltd., a leading provider of mobile phone solutions to China’s domestic market, today announced availability of a free-to-air TV handset from Gionee that leverages Telegent’s mobile TV technology. Gionee’s TV phone, the Gionee A10, allows consumers to receive the same live, familiar television programming that is broadcast over free-to-air channels while they are on the go. The phone is immediately available through Acorn International’s TV shopping network and online at http://www.chinadrtv.com. Gionee also plans to launch several more models of free-to-air TV phones this year, including models with large screen sizes and a model targeting women users.

“Mobile TV is a very attractive feature to consumers that is a key influencer in purchasing decisions,” said Wang Lei, assistant general manager of Gionee. “We believe that the free-to-air mobile TV feature, enabled by Telegent’s technology, will be a significant factor in driving handset sales in 2008.”

This announcement follows on the heels of a SINO Market Research survey that indicates that the analog TV feature will be the major selling point for mobile phones in China this year. According to Kirby Deng, deputy general manager of SINO Market Research, analog TV phones will account for around 15% of handset sales in China in 2008. A report from analyst firm In-Stat confirms strong demand worldwide, predicting that the number of analog mobile TV viewers will overtake digital mobile TV viewers in 2009.
Because free-to-air mobile TV leverages the existing television ecosystem, mobile TV solutions can be made available today without waiting for spectrum allocation or the development of standards, infrastructure and content associated with digital deployments.

The Gionee mobile TV handset joins more than fifty models of Telegent-enabled handsets available on the market. Telegent’s single-chip mobile TV receivers can be found in handsets sold in Asia, the Middle East, Latin America, and Africa. China-based partners, in addition to Gionee, include leading OEM providers such as ZTE, Konka and Skyworth.

“With more than five million consumers using Telegent-enabled handsets at the end of 2007, Telegent has been able to gain unprecedented insight into the impact of free-to-air mobile TV on consumer behavior,” said Weijie Yun, president & CEO of Telegent Systems. “Mobile TV, when it provides consumers with access to the same live, familiar programming that they view and enjoy at home, is a highly attractive feature with continuing perceived value following purchase. Gionee’s brand recognition combined with its ongoing investment in mass advertising channels will help further accelerate market adoption”

Telegent also recently released results of a consumer survey indicating that mobile TV can have a significant impact on handset sales, with 85% of respondents stating that the primary influence driving their handset purchase decision was the built-in free-to-air TV feature, as opposed to screen size, camera, music capability, or fashion.

The study, conducted in China where there are now more than three million users of free-to-air mobile TV, also reveals that free-to-air TV continues to be a compelling feature after purchase, with 74% of respondents watching television on their handset for thirty minutes or more at a time, and 54% watching five times a week.

The survey showed a marked increase in mobile TV consumption over time, with a strong preference for long-form programming. 54% of users surveyed five months ago watched mobile TV for ten minutes at a time, whereas 74% of the respondents surveyed in 2008 watched mobile TV for thirty minutes or longer. Picture quality has played a key role in market adoption, with 88% of respondents finding the quality acceptable.

For this survey, Telegent interviewed more than 400 consumers who purchased Telegent-enabled handsets, half of which were interviewed in February 2008, and the other half of which were interviewed between July and September of
2007. Telegent’s survey can be requested at
http://www.telegent.com/resources/survey.html.

“Mobile TV uptake is significantly influenced by the content that consumers are able to view on their handsets,” said Michelle Abraham, principal analyst at In-Stat. “The growing success of free-to-air mobile TV services suggests consumer preference for programs that are most like what people view at home.”

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Issued on behalf of Telegent Systems
by EBA Communications Ltd

For more information, please contact:
Mark Leeper /Carla Chan (EBA): (852) 2537 8022

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Contact Information:
Telegent Systems, Inc.
Mark Leeper
Tel: (852) 2537 8022
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China handset provider Gionee Telegent power mobile TV phones

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