Zoom Technologies Inc. (ZTNO)

[califax]

Zoom's Planned Acquisition, Leimone Culture, Delivers First Series of New Media Content to CCTV

Date : 07/14/2010 @ 12:00PM
Source : MarketWire
Stock : Zoom Technologies (ZOOM)

http://ih.advfn.com/p.php?pid=nmona&article=43602241&symbol=ZOOM

Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading China-based manufacturer of mobile phones and related products, today announced that its acquisition target, Beijing Leimone Shengtong Culture Development Company ("Leimone Culture"), delivered its first 3G mobile media content to China Central Television ("CCTV"). This initial content consists of a 30-episode comedy series, with each episode running 5 to 8 minutes. The theme of the series centers on three young women and their comedic challenge to gain stardom on a very popular "Chinese Idol" program.

Mr. Leo Gu, Chairman and CEO of Zoom Technologies, commented, "The delivery of this first content series to CCTV marks another major milestone for Leimone Culture and underscores both our commitment to innovation and leadership in new media service designed for the young mobile phone user. Zoom is positioned to benefit from the outstanding growth expected in the business of delivering new media content to mobile phones. China's continuing economic expansion and the strength of our manufacturing business also gives us confidence in achieving significant revenue growth. This comedy series is just the beginning of media content Leimone Culture is developing for CCTV. In addition, we have sports, music concerts, short films and other entertainment content for future delivery to CCTV. We expect the acquisition to be finalized in the 2nd half of 2010."

CCTV is the major State television broadcaster in China with 19 channels and more than one billion viewers. CCTV is also the largest program provider of "new media" for mobile handsets. Leimone Culture is the first company officially contracted by CCTV to supply new mobile media service. Upon the acquisition of Leimone Culture, Zoom Technologies will generate revenue based on viewership of media programs supplied by Leimone Culture onto CCTV's mobile TV program access link at CCTV.com The first series delivered by Leimone Culture is aimed at the largest segment of China's mobile phone users -- teenagers and young adults.

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 the latest 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.