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TechFaith Ships First Windows Mobile Based Touch Screen PC CDMA Device to Mexico

The PC CDMA mobile device is the first of its type to enter the Mexican market. This new device has a 2.8" touch screen, 3G technology, Windows Mobile 6.0 operating system, Wi-Fi and Bluetooth connectivity, photo camera, music player and Office Mobile applications (Word, Excel, PowerPoint) that allow users to receive, edit and send their files. In addition, the PC CDMA device also supports high-speed Internet connection.

"We're very pleased to ship the first pocket PC CDMA to Mexico," said Wilson Cai, Deputy CEO for TechFaith. "The shipment of this high-performing, Windows Mobile based pocket PC is a significant milestone for TechFaith. We expect the device to be very successful in the Mexican market."

Wilson Cai concluded, "We would also like to thank Microsoft for the great support. We have high expectations for the future of Microsoft Windows Mobile based pocket PCs in Mexico and the additional opportunities that may come."

This device will be introduced as an alternative to the currently available options in Mexico and will be available exclusively through the mobile phone company Iusacell.

According to IDC, the reasons companies opt for mobility include productivity, flexibility and access to applications while away from the office. Worldwide cell phone sales are increasing by 4% per year and are increasing by 6% per year in Latin America.

"Thanks to the Windows Mobile technology, users will be able to access such Office tools as Outlook, instant communication and entertainment applications through MSN Messenger, as well as photos, music, videos and games; also, they will be able to use it as a digital player with Windows Media Player, and even send and receive e-mail messages instantly, regardless of their location," explained Arturo Diaz, Director of the Mobile Business Unit at Microsoft Mexico.

Windows Mobile is Microsoft's bet for the mobile market. Mobility enables connectivity for businessmen, friends, and family, regardless of where and when, thus optimizing the opportunity to communicate and access Microsoft Office Mobile applications.

"Information Technologies are changing everything we do today. Being connected anytime is a growing need. Users require tools that allow them to have information at hand in order to be more productive through constant communication and interaction. Because of that, Microsoft is searching for different strategic allies to provide its customers with new useful instruments for their everyday lives," emphasized Diaz.

About TechFaith

TechFaith is an original developed product provider focused on research and development of cell phone solutions. Based in China, TechFaith employs approximately 700 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 Microsoft

Founded in 1975, Microsoft (NASDAQ: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Microsoft and Windows Mobile are registered trademarks of Microsoft Corp. in the United States and in other countries.

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, disruptions in the financial markets and other macro-economic challenges currently affecting the economy of the United States and other parts of the world, TechFaith's limited operating history, TechFaith's ability to effectively manage its rapid expansion, loss of TechFaith's customers and claims against TechFaith due to defects in its designs or other reasons, TechFaith's limited insurance coverage and its exposure to product liability and product recall, 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.