KongZhong Receives Investment from Nokia Growth Partners
a leading mobile Internet company in China, today announced that it has
reached a non-binding agreement with Nokia Growth Partners (NGP) to receive an
investment of about
would also receive warrants to purchase an additional 2.0 million American
Depositary Shares (ADS) at
“I’m truly pleased to welcome Nokia Growth Partner’s investment in
KongZhong. As we prepare for 3G in the China mobile market, we are seeking to
enhance our strong existing mobile operator channels with equally powerful
non-operator channels,” said
“Nokia is the leading mobile device manufacturer in the world and mainland
China with significant market share. We have developed a good working
relationship with
gaming and community services through their powerful mobile device platform
and look forward to expanding our relationship with Nokia.”
“Nokia Growth Partners invests in best of breed mobile services and
technology companies with significant potential for future growth and industry
leadership and whose businesses can benefit from a deeper relationship with
Nokia,” said
is a premier mobile entertainment company. Our investment reflects the belief
in the leading role KongZhong can take as China embarks on 3G mobile
services.”
The convertible senior notes would initially pay an annual interest of 8%
subject to reduction to 6% based on the financial performance of the Company.
The conversion price would equal the average closing price per share of the
Company’s ordinary shares for a period of 75 trading days prior to the date of
this announcement. The notes would mature in five years and could be prepaid
at the Company’s option after three years. The transaction is subject to
completion of definitive documentation.
About Nokia Growth Partners
Nokia Growth Partners is the premier venture investor focused on growth
stage companies in the mobile industry. With
for direct and fund of fund investments, Nokia Growth Partners is the
preferred investor for companies, funds and people that are changing the
global face of mobility, communications and the Internet. Nokia Growth
Partners offers portfolio companies a global perspective on the mobile
industry and the strategic guidance, network and platform to accelerate growth
both domestically and internationally. Nokia Growth Partners also works
closely with Nokia, its sole limited partner, to provide a superior return on
investment while increasing the likelihood and magnitude of success in the
companies in which it invests. Nokia Growth Partners has offices in Silicon
Valley,
more information.
About KongZhong
KongZhong Corporation is a leading mobile Internet company in China. The
Company delivers wireless value-added services to consumers in China through
multiple technology platforms including wireless application protocol (WAP),
multimedia messaging service (MMS), JAVATM, short messaging service (SMS),
interactive voice response (IVR), and color ring-back tone (CRBT). The
Company operates three wireless Internet sites, Kong.net, Ko.cn and cn.NBA.com,
which enable users to access media, entertainment and community content
directly from their mobile phones. The Company also designs and operates
mobile games, including mobile online games, downloadable offline games and
WAP games.
Safe Harbor Statement
This press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking statements
include, without limitation, statements regarding trends in the wireless
value-added services, wireless media and mobile games industries and our
future results of operations, financial condition and business prospects.
Although such statements are based on our own information and information from
other sources we believe to be reliable, you should not place undue reliance
on them. These statements involve risks and uncertainties, and actual market
trends and our results may differ materially from those expressed or implied
in these forward looking statements for a variety of reasons. Potential risks
and uncertainties include, but are not limited to, continued competitive
pressure in China’s wireless value-added services, wireless media and mobile
games industries and the effect of such pressure on prices; unpredictable
changes in technology, consumer demand and usage preferences in the market;
the state of and any change in our relationship with China’s
telecommunications operators; our dependence on the billing systems of
telecommunications operators for our performance; the outcome of our
investment of operating income generated from the WVAS segment into the
development of our wireless Internet segment and mobile games segment; changes
in the regulations or policies of the Ministry of Industry and Information
Technology and other relevant government authorities; and changes in political,
economic, legal and social conditions in China, including the Chinese
government’s policies with respect to economic growth, foreign exchange,
foreign investment and entry by foreign companies into China’s
telecommunications market. For additional discussion of these risks and
uncertainties and other factors, please see the documents we file from time to
time with the Securities and Exchange Commission. We assume no obligation to
update any forward-looking statements, which apply only as of the date of this
press release.
SOURCE KongZhong Corporation