TechFaith and Epic Games China Sign Licensing Agreement

Defu Dong, CEO of TechFaith, said, "We are excited about our collaboration with EPIC, as this license agreement will enable us to produce high-quality games to meet the demands and requirements of Chinese gaming consumers. TechFaith is rolling out its plan to get into the gaming market and is off to a great start with such a strong partner as EPIC. As we commence with our gaming strategy, we continue to believe this sector has strong growth potential.

Mobile phone games should serve as an excellent springboard to begin penetrating the broader mobile content sector. EPIC's Unreal Engine 3 is one of the most highly acclaimed engines in the market, broadly used by the top game developers. Our progress in this space will help us to capture the potential for our future in the mobile phone gaming space."

Epic Games China is honored to be providing TechFaith with the core development infrastructure, tools, and technology for its upcoming projects," said Paul Meegan, CEO of Epic Games China. We're excited that TechFaith has chosen Unreal Engine 3 and look forward to seeing the great games they'll produce with it." About TechFaith TechFaith (NASDAQ: CNTF) is an original developed product provider focused on research and development of cell phone solutions.

Based in China, TechFaith employs approximately 1,300 professionals, of whom approximately 90% are engineers. TechFaith engages in the development and production of middle to high end handsets and tailor made handsets.

TechFaith's original developed products include: (1) multimedia phones and dual mode dual card handsets of multiple wireless technology combination such as GSM GSM, GSM CDMA, GSM WCDMA, GSM TD-SCDMA and UMTS CDMA; (2) Window based smartphone and Pocket PC phone; and (3) handsets with interactive online gaming and professional game terminals with phone functionality.

With the capability of developing MMI UI software on 2G 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 carriers in the global market.

For more information, please visit www.techfaithwireless.com About Unreal Engine 3 The award-winning Unreal Engine is known for cutting-edge graphics and a best-of-breed toolset. Unreal Engine 3 is expected to maintain those features while adding massive world support, multi-processor support, next-generation console optimizations, and one of the most mature tool pipelines in the industry.

Unreal Engine 3's new toolset is designed specifically to accelerate developers' productivity for ultra-complex, next-generation content. Additional information on Unreal Engine can be obtained at http: www.unrealtechnology.com About Epic Games Epic Games, Inc., Cary, NC and established in 1991, develops cutting-edge games and cross-platform game engine technology.

The company has created multiple million-selling, award-winning titles in its Unreal series, recently shipping Unreal Tournament 3 for PC and PlayStation 3. Epic's breakthrough game, Gears of War, sold over 4 million copies and was awarded overall Game of the Year for 2006 by the Academy of Interactive Arts & Sciences, Game Developers Choice Awards, GameSpot, GamePro and many others.

Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games, including the Game Critics Awards' Best Console Game and Spike TV's 2007 RPG of the Year Mass Effect by BioWare and the 2007 BAFTA Best Game and Spike TV Game of the Year BioShock by 2K Games.

Epic's Unreal Engine 3 is the current holder, and three-time consecutive winner, of Game Developer magazine's Front Line award for Best Game Engine. Epic was also recognized as 2006 Studio of the Year by Spike TV, 2006 Developer of the Year by Official Xbox Magazine and 2007 Large Company of the Year by the North Carolina Technology Association. Additional information about Epic can be obtained through the Epic Games Web site at www.epicgames.com.

About Epic Games China Epic Games China, based in Shanghai, licenses Epic Games' Unreal Engine 2 and Unreal Engine 3 in mainland China, Taiwan, Hong Kong and South East Asia. The company provides local technology support and professional training services in Mandarin and English. Epic Games China also offers AAA quality content production outsourcing and game development services to developers and publishers worldwide.

Additional information is available at http: www.epicgameschina.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 strategic and operational plans of TechFaith contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S.

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