China Mobile Forms Strategic Alliance with Phoenix

HONG KONG, June 9, 2006/Satnews Daily/ — China Mobile Limited (NYSE: CHL; HKSE: 941) and Phoenix Satellite Television Holdings Limited announced on Thursday a strategic alliance to jointly develop, market and distribute wireless content, products, services and new media applications.

The announcement follows the purchase of a 19.9 percent interest in Phoenix from Rupert Murdoch’s Star Group Limited by China Mobile (Hong Kong) Group Limited, China Mobile's holding company. After the transaction, Star will continue to hold 17.6 percent of Phoenix.

Under the strategic alliance agreement, China Mobile and Phoenix said they will jointly develop products and services relating to the wireless delivery of media content. In exchange for direct access to China Mobile's network and customer base on favorable terms, China Mobile will have preferential access to Phoenix's news and selected programs.

The deal will complement China Mobile's 3G strategies by widening its service offerings and providing enhanced media content to its mobile subscribers, and will broaden Phoenix's new media content's access to China mobile's customer base.

Wang Jianzhou, chairman and CEO of China Mobile, said, Phoenix offers a unique set of content to the Chinese community globally. “By leveraging Phoenix's media content via our mobile platform, China Mobile will be well positioned to provide wireless multimedia services to our customers,” he said.

Liu Changle, chairman and CEO of Phoenix, said the new strategic alliance will provide an excellent opportunity for the further development of Phoenix's new media business, and should have a very positive impact on Phoenix's long-term commercial prospects, enabling Phoenix to distribute its content through China Mobile's wireless platform and reach a broader market.

China Mobile is a leading mobile telecommunications service provider in China, providing mobile voice and data telecommunications and related services to all 31 provinces, municipalities and autonomous regions in the mainland as well as being one of the major mobile telecommunications service providers in Hong Kong. As of 30 April 2006, China Mobile had an aggregate mobile telecommunications subscriber base of nearly 265 million, the largest worldwide.

Phoenix is one of the leading broadcasters in Hong Kong and mainland China aiming to provide quality content to Chinese communities all around the world. Today, Phoenix Chinese, Phoenix Movies, Phoenix InfoNews, Phoenix Chinese News and Entertainment and Phoenix North America Chinese channels together broadcast to audiences in the Asia Pacific, as well as in Europe, North America and North Africa, covering more than 100 countries and regions.