Qiao Xing Mobile to Invest RMB500 Million to Build VEVA Specialty Retail Stores in Up-market Shopping Malls

BEIJING, March 10 /PRNewswire-Asia-FirstCall/ — Qiao Xing Mobile
Communication Co., Ltd. (“Qiao Xing Mobile” or the “Company”) (NYSE: QXM), one
of China’s leading domestic manufacturers of mobile handsets operating its
business primarily through its subsidiary, CEC Telecom Co., Ltd. (“CECT”),
announced that CECT has set up a subsidiary to build and operate up to 500
VEVA specialty retail stores in the People’s Republic of China. CECT estimates
that it will invest approximately RMB500 million into this subsidiary to build
the 500 stores.

The Company has set up four flagship VEVA specialty retail stores in
Beijing, China so far. All VEVA specialty retail stores were built or will be
built near the luxury jewelry and fashionable clothing and accessories
counters in up-market shopping malls in order to be well-positioned to lead
the fashion trends in the mobile handset market. The VEVA specialty stores
will enable customers to fully explore the fashionable designs and innovative
features of the VEVA mobile handsets rather than having to select one phone
from the many hundreds of mobile phones in traditional electronic stores. The
official release of this channel strategy shows that the VEVA brand building
has reached a new stage.

Mr. Wu Zhi Yang, Chairman of the Company, commented, “The VEVA branded
fashionable mobile phones are in line with the developing trends in the
Chinese mobile handset market and we believe that fashionable luxury mobile
phones will have a sizable market in China. With the set up of its VEVA
specialty retail stores, Qiao Xing Mobile will become one of the few domestic
mobile handset companies that owns its own design, research and development,
production facilities and marketing and retail channels. Qiao Xing Mobile will
build a marketing model with various kinds of distribution channels, including
TV direct sales, distributor networks and retail outlets, which could provide
competitive advantage to the Company. VEVA specialty retail stores will enable
the Company to be closer to its customers and enhance the image of the VEVA
brand. We have tentative plans to build VEVA specialty stores in overseas
markets in the future.”

About Qiao Xing Mobile Communication Co., Ltd.:

Qiao Xing Mobile Communication Co., Ltd. is one of the leading domestic
manufacturers of mobile handsets in China in terms of unit sales volume. The
Company manufactures and sells mobile handsets based primarily on Global
System for Mobile Communications, or GSM, global cellular technologies. It
operates its business primarily through CEC Telecom Co., Ltd., or CECT, its
96.6%-owned subsidiary in China. Currently, all of its products are sold under
the “CECT” and “VEVT” brands. Through its manufacturing facility in Huizhou,
Guangdong Province, China, and two research and development centers in Huizhou
and Beijing, the Company develops, produces and markets a wide range of mobile
handsets, with increasing focus on differentiated products that generate
higher profit margins. For more information, please visit
http://www.qxmc.com .

Safe Harbor Statement

This announcement contains forward-looking statements, as defined in the
safe harbor provisions of the U.S. Private Securities Litigation Reform Act of
1995. In some cases, these forward-looking statements can be identified by
words or phrases such as “aim,” “anticipate,” “believe,” “continue,”
“estimate,” “expect,” “intend,” “is /are likely to,” “may,” “plan,”
“potential,” “will” or other similar expressions. Statements that are not
historical facts, including statements about Qiao Xing Mobile’s beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any forward-
looking statement. Information regarding these factors is included in our
filings with the Securities and Exchange Commission. Qiao Xing Mobile does not
undertake any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this press release
is as of March 10, 2009, and Qiao Xing Mobile undertakes no duty to update
such information, except as required under applicable law.

    For further information, please contact:

    Qiao Xing Mobile Communication Co., Ltd.
     Ma Tao
     Tel:   +86-10-6250-1706
     Email: matao@cectelecom.com

SOURCE Qiao Xing Mobile Communication Co., Ltd.