SHANGHAI, China, July 19, 2005 (PRIMEZONE) -- China Digital Wireless, Inc. (OTCBB:CHDW), a leading distributor of mobile phones and value-added information services to users of mobile phones and pagers in Shanghai, People's Republic of China, announced today that it has reached an agreement with Nokia through which the Company will become the exclusive distributor of select Nokia mobile phones for the Shanghai region.
This agreement is for a term of one year and is renewable annually thereafter. It provides for flexibility with respect to the specific mobile phone models to be distributed by the Company in order to enable the Company to be responsive to market changes and product innovations by Nokia.
The Company believes that this agreement will enhance both its market share and profitability. It will allow the Company to benefit from Nokia's position as the leading manufacturer of mobile phones worldwide and Nokia's leadership in the rapidly growing mobile phone market in China. Additionally, the Company anticipates increased margins on the sale of the Nokia units as compared to other units the Company has been selling.
Approximately 20 percent or 340 million of the world's mobile phone users are in China, making it a focal point for major mobile phone manufacturers. In particular, China is now the second-largest worldwide market for Nokia, which continues to build and enhance its brand in China. This will enable the Company to benefit both directly and indirectly through sales generated in part by brand messages from Nokia and through the additional brand and market awareness for the Company as a result of this agreement.
The Shanghai market, which is covered by this agreement, is considered to be one of the most important markets for mobile phones in China. Consequently, this agreement provides the potential for significant expansion of the Company's revenue and profitability. About China Digital Wireless, Inc.
China Digital Wireless provides wireless users in China access to financial information and various entertainment-related services via their mobile phones. By bundling its financial information software with the wireless phones it markets, the company is building a recurring high-margin subscriber base. China Digital Wireless intends to grow revenues by expanding its subscriber base, adding additional value-added, fee-based services, and increasing its installed base of TV monitors used as a novel advertising medium. In addition, China Digital Wireless distributes various mobile phone models in the Shanghai, China region.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.