Zoom Technologies Inc. (ZTNO)

[califax]

Zoom Technologies to Enter China New Media Arena Through Leimone Culture Deal With China Central Television

Mar 24, 2010 08:32 ET
http://www.marketwire.com/press-release/Zoom-Technologies-Enter-China-New-Media-Arena-Through-Leimone-Culture-Deal-With-China-NASDAQ-ZOOM-1137037.htm

Leimone Culture and CCTV Sign the First Official CCTV Contract for Mobile Media Services

BEIJING--(Marketwire - March 24, 2010) - Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading China-based manufacturer of mobile phones and other mobile electronic products, today announced that the Company's previously disclosed acquisition target, Beijing Leimone Shengtong Culture Development Company (Leimone Culture), has signed an agreement with China Central Television (CCTV), the major state television broadcaster in China, with 19 channels broadcasting to more than one billion viewers. According to the agreement, Leimone Culture will provide approved media content to CCTV's mobile users and will bundle CCTV.com's mobile TV access link onto Zoom's branded "Leimone" mobile phones and onto Zoom Original Equipment Manufacturer (OEM) customers' phones.

Pursuant to Section 1.3 of the Share Exchange Agreement dated January 28, 2009 between Zoom, Gold Lion Holding Ltd and Mr. Lei Gu, which shareholders of Zoom approved on September 8, 2009, Zoom has the option of purchasing Mr. Gu's shares of a list of companies controlled by him, and among these companies is Leimone Culture of which Mr. Gu owned 70% in September 2009. On December 1, 2009, Zoom's board of directors approved to pursue the acquisition of 100% of Leimone Culture subject to further due diligence, with details of the transaction to be finalized in the first half of 2010.

Mr. Leo Gu, Chairman and CEO of Zoom Technologies, commented, "This agreement with CCTV is the first of its kind for mobile media services, and is a milestone for Leimone Culture and Zoom Technologies. It partners Zoom through Leimone Culture with the largest media company in China, and positions us to benefit from the outstanding growth expected in the business of delivering video programs to mobile phones. We expect our mobile media business to grow significantly once Zoom completes the acquisition of Leimone Culture later this year. China's continuing economic growth and the strength of our manufacturing business also give us confidence in achieving significant growth."

CCTV currently captures 60% of China's mobile media services, making CCTV the largest program provider of "new media" for the mobile handset. Leimone Culture is the first company officially contracted by CCTV to participate with CCTV in this new mobile media service. Leimone Culture will generate revenue based on viewership of media programs supplied by Leimone Culture onto CCTV's mobile TV program access link. Leimone Culture has been selected as CCTV's supplier for a number of reasons, including content quality and Zoom's manufacturing capabilities, which can bundle the CCTV mobile TV access link in up to 10 million mobile phones in 2010.

Zoom expects to finalize the acquisition of Leimone Culture by mid-year 2010.

Leimone Culture has been a provider of mobile video services to China's top tier mobile phone service providers, including China Mobile since 2005 and China Unicom since 2007. Since the advent of 3G in China in mid-2009, Leimone Culture has captured revenues from advertisements loaded onto new phones, value-added applications provided to the mobile operators, the production of mobile short films, and web-based ad sales.

About Zoom Technologies
Zoom Technologies is a holding company with subsidiaries that engage in the manufacturing, research and development, and sale of electronic and telecommunication products for 3rd generation mobile phones, wireless communication circuitry, and related software products. Zoom Technologies' subsidiary, Jiangsu Leimone, owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers as well as its Own Brand Manufacturing (OBM) under the brand name of Leimone. The company's products are both exported and sold domestically.

Forward-Looking Statements
Certain statements in this press release may constitute "forward looking statements" that involve risks and uncertainties. These include statements about our expectations, plans, objectives, assumptions or future events, including the acquisition of Leimone, which may require shareholder approval which cannot be assured. You should not place undue reliance on these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed with the Securities and Exchange Commission. We undertake no obligation to publicly release revisions to these forward-looking statements to reflect future events or circumstances or reflect the occurrence of unanticipated events.