China TechFaith Wireless Communication Technology Limited announced the formation of TechFaith Tech-Interactive Limited, a wholly owned subsidiary focusing on the development and operation of wireless application and content.

The new wireless content unit will initially set up three studios to develop interactive online gaming content. As a unique ODP provider, TechFaith offers the market mid to high end and tailor-made multimedia phones, dual mode dual card phones, smartphones and Pocket PC phones. Extending this strategy, TechFaith is now adding handsets with interactive online gaming and professional game terminals with phone functionality to its current product portfolio. In addition, TechFaith will engage in gaming operations in the Chinese market and provide original design wireless gaming application and software services to the international market. This will enable TechFaith to gradually evolve from an original developed product provider to an original developed product and content provider. TechFaith's wireless game terminals will be Windows Mobile based and ultra small PCs will be based on Windows Vista and Windows XP.

Mr. Defu Dong, CEO of TechFaith, said, "TechFaith successfully differentiated itself from traditional players in the handset industry through our hybrid ODP business model. Along the way, we have closely monitored trends and opportunities in the related wireless content sector. We continue to believe this sector has strong growth potential and view wireless online games as a logical place to start penetrating the broader wireless content sector. TechFaith's advantage in handset technology development and research will facilitate our ability to test and run robust content on a variety of platforms. Importantly, we expect enriched content will help increase the average selling price of our current mobile products. Finally, game services and game terminals will be another source of new revenue. By launching TechFaith Tech-Interactive Ltd. as a wholly owned subsidiary we will be able to incorporate technologies for the convergence of cable and wireless networks, while leveraging our existing scale and relationships to accelerate growth at home and abroad."