SIM Technology Group Limited (“SIM Technology” or “Group”; SEHK stock code: 2000) has launched the first CMMB mobile TV handset in China to welcome the Beijing 2008 Olympics. With theCMMB (“China Mobile Multimedia Broadcasting”) receiver chip passing the technical testsrecently and starting to movetowards commercial application, SIM Technology has devoted considerable R&D resources into CMMB mobile TV handset which operates on the CMMB standards issued by The State Administration of RadioFilm and Television (“SARFT”) and, as a result, introduced the first feature phone model CMMB TV handset. Mass production of the handset is expected to start before theBeijing Olympics arrives in time for people to use to enjoy the mega global sports event anytime and anywhere.

The two CMMB mobile TV handsets of us stole the spotlight at the China (Shenzhen) International Cultural Industries Fair (“ICIF”) in Shenzhen and received high acclaims from the SAFRT. SIM Technology Group was also the only exhibitor showcasing CMMB mobile TVs at the exhibition.

SARFT started R&D of CMMB two years ago which was driven by the Beijing Olympics 2008 and issued the CMMB industry standards in October 2006 and confirmed the adoption of STiMi, a mobile TV reception standard developed by China. It is the first proprietary system of China that can support various mobile terminals such as handsets, PDA, MP3, MP4, digital cameras and notebook computers. Utilizing the satellite signal (S–Band) and the terrestrial signal (U-Band) to realize seamless coverage and nationwide roaming, the system also supports 25 TV programs and 30 broadcasting programs. CMMB can transmit at 25framesper second, the same as an average TV. Until now the CMMB single is already launched in 23 domestic cities and the additional 37 cities which are the first or second top modern ones in China are targeted in July, 2008. SARFT promised that all the users of the above 37 cities can watch CMMB programs conveniently during the Beijing Olympic. The CMMB Mobile TV Handset user will be able to watch programs on CCTV1, CCTV news channel and sports channel, etc., free of charge using their CMMB mobile TV handsets.

Mr. Cho-Tung Wong, Executive Director of SIM Technology, said, “We believe mobile TV handsets will be the talk of the market in the next few years. In the past two years, we have launched the IPTV handset for Streaming Media, the analog TV handset suitable for use in small and medium-size towns and villages and the DVB digital TV handset in some big cities. The two CMMB multi-function mobile TV phone series are our latest pride. Riding on the Olympic fever, we believe the CMMB mobile TV will gain increasing popularity in the market. We will continue to develop new products and grasp opportunities in the fast-growing market.”

■ SIM Technology Group Limited