China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF), an ODM focused on research and development of cell phone solutions, today announced its unaudited financial results for the third quarter ended September 30, 2007.

Net revenues for the third quarter of 2007 were US$38.4 million, a 122.8% increase compared to US$17.3 million for the same period in 2006. Net income for the third quarter of 2007 was US$1.6 million or US$0.04 per weighted average outstanding ADS (basic and diluted) compared to a net loss of US$6.5 million or US$0.15 per weighted average outstanding ADS (basic and diluted) for the same period in 2006. TechFaith ended the third quarter of 2007 with a balance of US$84.9 million in cash and cash equivalents and US$5.2 million in restricted cash.

Defu Dong, TechFaith's Chairman and CEO, said, "We are excited and encouraged by our third quarter results. We achieved 20.0% sequential growth in revenues, and returned to profitability ahead of plan. We continue to make significant progress and have quickly become one of the most successful new ODMs in China with 82.5% of our total revenue coming from ODM business. We announced several major new contracts, strategic partnerships and products in the quarter. Of note, we were recently granted a new license agreement from Qualcomm. TechFaith, as a handset ODM, is now able to develop, manufacture and sell products covering the 3G spectrum, including CDMA2000, WCDMA/UMTS and TD-SCDMA. We are also excited about our successful launch of the world's first WCDMA/GSM dual mode dual standby phone known as 'Twins,' and our launch of the world's first Windows-based GSM/CDMA dual mode dual standby pocket PC phone known as 'Gallic.' In addition, we announced our first contract from a customer that is not in the traditional telecommunications sector. We expect to benefit from strong demand in the broader, non-telecommunications market going forward, as our custom developed phones are adopted to meet needs ranging from security and surveillance, to data management, GPS/location based tracking and other data and communications needs."

Bob Huo, TechFaith's Deputy CEO, added, "Based on our results and customer demand, we are confident we have the right business model in place. TechFaith is now providing dual mode, dual SIM and dual standby handsets with technology combinations including GSM/GSM, GSM/CDMA1X, WCDMA/GSM. We expect to develop additional handset models that combine different technologies in the future. For medium- and high-end markets, TechFaith now offers feature phones and smart phones based on 3G and 3.5G technologies, including WCDMA, EVDO, TD-SCDMA and HSDPA. We have diversified our customer base by successfully penetrating the China market, as well as other markets worldwide. We expect TechFaith will benefit from continued strong global ODM demand over the coming quarters, and at the same time, maintaining strict operating cost controls. We are confident our current headcount level can support a much higher revenue level, and have no plans to increase our hiring. Our goal is to further strengthen our supply chain management as we optimize our cost structure. Overall, we expect revenue in the fourth quarter to increase by 10%-14% over the third quarter."

TechFaith's ADSs, each of which represents 15 ordinary shares of TechFaith, are currently trading on the Nasdaq Global Market under the symbol ''CNTF.''

Investor Conference Call / Webcast Details

The dial-in number for the live audio call beginning on November 13, 2007 at 7:00 p.m. U.S. Eastern Time (8:00 a.m., November 14, 2007 in Beijing) is +1-866-713-8565 (domestic) or +1-617-597-5324 (international). The passcode is 56065255. A live webcast of the conference call will be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available on November 13, 2007 at 9:00 p.m., U.S. Eastern Time (10:00 a.m., November 14, 2007 in Beijing) through midnight on November 20, 2007, U.S. Eastern Time (1:00 p.m., November 21, 2007 in Beijing) at www.techfaithwireless.com and by telephone at +1-888-286-8010 (domestic) or +1-617-801-6888 (international). The passcode to access the replay is 79569228.

About TechFaith

TechFaith (NASDAQ: CNTF) is an original design manufacturer, or ODM, focused on research and development of cell phone solutions. Based in China, the Company employs approximately 1,200 professionals, of whom 90% are engineers. TechFaith's business includes handset design, feature phone solution, data card and wireless module, application software, and smartphone and pocket PC. With the capability of developing MMI / UI software on 2/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication technologies, TechFaith is able to provide MMI/UI software packages that fulfill the specifications of handset brand owners and major global operators. Having a full range of wireless application software including WAP, Java, MMS, WWW browser, SyncML and DRM, TechFaith is also providing total solutions for upper layer software of handsets. In addition, TechFaith is developing smartphone software based on open operating systems including Linux and Windows Mobile, and capable of implementing high-end smartphones integrating Bluetooth, WiFi, high megapixel cameras, etc. based on different communication technologies according to special requirements of customers. For more information, please visit www.techfaithwireless.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as TechFaith's strategic and operational plans, contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, TechFaith's limited operating history, TechFaith's ability to retain existing or attract additional domestic and international customers, TechFaith's earnings or margin declines, failure to compete against new and existing competitors, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, and other risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.