Shanghai, 21, July 2008

At the invitation of SIM Technology Group Ltd. (“SIM Technology” or “the Group”; SEHK stock code: 2000), Mr. Su Jinsheng, Director General of Telecommunications Administration Bureau, Ministry of Industry and Information Technology (MIIT); Mr. Lu Yang, Deputy Director General of Telecommunications Administration Bureau, MIIT; Mr. Wen Ku, Director General of Department of Science and Technology; and Ms. Cao Shumin, Deputy Director of China Academy of Telecommunication Research, who were also joined by such prominent local telecom officials as Mr. Yao Shicheng, Director General of the Shanghai Telecommunications Administration Bureau, visited the Group’s headquarters in Shanghai and introduced to its “TD Mobile-TV” project.

Mr. Su and Mr. Wen were impressed by the Group’s ability to complete the prototype of TD Mobile-TV in 13 days and start volume production 20 days later from the beginning, and with certainty of realizing the delivery plan before the Beijing Olympics begins. They commended the Group for its efficiency in prototype development and beating its peers in delivery in volume, which they saw as a reflection of the Group’s formidable R&D and operational capabilities.

“TD Mobile-TV” is a latest key focus of the MIIT. It entails requiring handsets to receive and display TV broadcast programmes based on TD mode. The project is at the centre of attention of the Central Government, MIIT and the National Broadcasting Institute, and China Mobile has commenced tender invitation for 40,000 handsets with delivery date set before the Beijing Olympics begins, with the hope of allowing enjoyment of the Olympic events using 3G handsets adopting a technological mode developed by China itself.

The Group secured the design project on 1 July and pooled together the best R&D professionals in its different operational arms to form a special project team. The more than 100-strong R&D team was led by three vice presidents. Starting with the theoretical flowchart, the team worked for 13 days and completed the assembly and manufacturing of the first batch of 170 prototypes. It immediately started preparation work for volume production and delivery, targeting to put out and deliver about 25,000 TD Mobile-TVs between 25 July and 6 August before the opening of the Beijing Olympics.