China TechFaith Wireless and Arasor Enter Into a Joint Venture

China TechFaith Wireless and Arasor Enter Into a Joint Venture
Targeting Wireless Handset Emerging Market 
BEIJING -- (MARKET WIRE) -- 07/20/07 -- China TechFaith Wireless
Communication Technology Limited (NASDAQ: CNTF) and Arasor
International Group (ASX: ARR) today announced entering into a joint
venture to expand the wireless handset opportunities in the world's
emerging markets.  In addition to contributing sales and marketing
resources, Arasor will provide the joint venture with funding for
operations in exchange for a majority ownership interest in the joint
venture.  China TechFaith, which will own a minority interest in the
joint venture, will provide product development engineers, working
facilities, testing equipment, and intellectual property. The two
parties will jointly develop handsets with specific functions and
features to meet both cost and performance requirements for the
world's emerging wireless handset markets such as India, Southeast
Asia and the Middle East. 
Mr. Defu Dong, CEO of China TechFaith, said, "We see great
opportunities in the emerging market. India, for example, is one of
the world's largest, promising and tech-savvy wireless communications
markets. Partnering with Arasor will enable TechFaith and Arasor to
develop a strong business platform in India. I am confident that with
our complementary skills, the JV will penetrate the market quickly
and attain significant market share." 
Dr. Simon Cao, CEO of Arasor, said, "We are delighted to expand the
portfolio of our wireless solutions business. The world emerging
wireless communication market has been witnessing robust growth and we
see tremendous opportunity in the terminal segment.  We believe that a
joint partnership with China TechFaith, a leader in the development
and design of wireless products, will allow Arasor to become  a
leader in those wireless communications market over the next several
years." 
About Arasor International Limited 
Arasor International Limited develops and markets telecommunications
and consumer optoelectronic solutions. Under the leadership of one of
the strongest management and engineering teams in the optoelectronics
industry today, Arasor aims to establish itself as a leading solutions
company serving global systems vendors in the network transport,
wireless communications and the emerging laser-based display
industries.  Arasor's worldwide headquarters are located in Mountain
View, California, USA with operations in Guangzhou, China; Shanghai,
China and Yokohama, Japan.  For additional information:
www.arasor.net. 
About China TechFaith 
TechFaith (NASDAQ: CNTF) is one of the largest handset application
software and handset solution providers based in China. The Company
employs approximately 1,400 professionals, of whom 90% are engineers.
TechFaith's business includes handset design, feature phone solution,
wireless module and data card, application software, and Smartphone
and Pocket PC. With the capability of developing MMI / UI software on
GSM/GPRS, CDMA1X, EVDO, WCDMA/UMTS, HSDPA and TD-SCDMA communication
technologies, TechFaith is able to provide MMI/UI software packages
that fulfill the specifications of handset brand owners and major
global operators. TechFaith's smartphone software is based on open
operating systems including Linux and Windows Mobile. 
Safe Harbor Statement for China TechFaith 
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" 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, TechFaith's
limited operating history, mobile handset brand owners'
discontinuation or reduction of the use of independent design houses,
TechFaith's ability to retain existing or attract additional
international customers, TechFaith's earnings or margin declines,
failure to compete against new and existing competitors, 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. 
CONTACTS:
For Arasor International Group
In Australia:
Mr. Scott Wilkie
Director of Operations & Investor Relations (Australia)
Tel: +61-400-118-100 
For TechFaith
In China:
Ms. Helen Zhang
Tel: +86-10-5822-7390
Email Contact 
In the U.S.:
David Pasquale
EVP at The Ruth Group
Tel:+646-536-7006
Email Contact