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New Wireless Phone Agreement In China

17th January 2003

TTP Communications and TCL Mobile Communication Ltd, China's largest local manufacturer of mobile phones, announce that they have signed a long term strategic agreement for the development of advanced mobile phones. This agreement builds on the GPRS licensing deal that the two companies announced in December 2002 and gives TCL access to TTPCom's complete applications platform. The first product under development is a fully featured, MMS enabled camera phone complete with large colour screen and downloadable games, which TCL expect to launch in the first half of 2003.

 

TCL currently manufactures 6 million phones per annum, making it the number 3 in
the Chinese market. It has recently increased its manufacturing capacity to 12
million phones per annum, reflecting the company's declared ambition in the
mobile phone market, to be number 5 in the world within the next 3 years.

Under the agreement TCL gains immediate access to a comprehensive range of
TTPCom's world-leading technology. TTPCom will provide a dedicated team to work
alongside TCL's engineering team within the framework of a joint 'lab' and will
undertake a range of training programs with the objective of accelerating the
transfer of wireless expertise and know how. In addition TTPCom will offer
consultancy services that will enable TCL to develop a roadmap of innovative
products suitable for the worldwide mobile terminal market.

Dr. Wan Mingjian, CEO of TCL Mobile stated 'For TCL to achieve a world leading
position in the development of mobile phones we need to take more control of the
technology, add the latest functionality to our products and offer these to
market in as short a time as possible and at the most competitive price. This
agreement with TTPCom is a true long-term partnership. TTPCom's platform
approach, that enables technology to be reused across a range of phones, is key
to keeping pace with a fast changing market and will give TCL the flexibility we
need to build our position worldwide.'

Tony Milbourn, Managing Director of TTPCom added: 'TCL is China's leading
manufacturer of handsets and we are very pleased that through this agreement we
are forging a long-term relationship with them. We hope TTPCom's insight into
the European and North American markets will prove invaluable to TCL as they
develop their position as one of the world's leading manufacturers of mobile
phones. We are building strong relationships with many of the European
operators who recognise that TTPCom technology is integral to many of the
products available on their networks, as demonstrated by the success of the
Sharp GX10 camera phone used in the Vodafone Live! service in the UK. Through
these relationships we can offer TCL a fast-track introduction to the European
market for products resulting from this agreement.'

Nick Kerry, TCL Lab Project Manager who is leading the TTPCom team said 'The
timescales are demanding, but we are used to bringing high tech phones into the
market quickly.'

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