Zoom Technologies Reports Third Quarter 2013 Results and Conference Call

Zoom Technologies Reports Third Quarter 2013 Results and Conference Call

Third Quarter 2013 Highlights:

  *Net loss of $14.09 million compared to net income of $0.75 million in same
    quarter last year
  *Net loss in the quarter resulted from the loss on disposal of Portables
    Unlimited, LLC

BEIJING, Dec. 2, 2013 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc.
(Nasdaq:ZOOM) (the "Company"), is a holding company that invests in mobile and
telecommunications businesses. On November 25, 2013, after the close of the
market, ZOOM filed its quarterly financial report for the third quarter ended
September 30, 2013.

The Company recorded material losses at the end of the third quarter of 2013
as a result of the loss of its ownership interest in Portables Unlimited, LLC
("Portables").If the Company was to maintain its ownership in Portables, it
would have had to deploy more capital.The Company performed a comprehensive
analysis, and then decided against investing further in Portables.The
Company's strategy moving forward is to invest in mobile advertising and
technology based businesses with high expected futures earnings growth.

On November 21, 2013, the Company entered into a Letter of Intent (the "LOI")
with Beijing Baifen Tonglian Information & Technology Co., Ltd. ("Baifen") to
acquire, directly or indirectly, all the outstanding shares of Baifen.Please
refer to the press release, "Zoom Technologies Inc. to Acquire Beijing Baifen
Tonglian Information & Technology Co., Ltd.", dated November 27, 2013 for
further details.

Conference Call

The Company will host an investor call at 9:00 a.m. ET (6:00 a.m. Pacific) on
Tuesday, December 3, 2013. To access the conference call dial +1-855-500-8701
and then enter access code (conference ID) 18825421.Callers outside the U.S.
and Canada should dial +65-6723-9385 and then enter access code 18825421.

A replay of the conference call will be available for 3 days, through December
6, 2013. To access the replay, please dial +1-855-452-5696 and enter access
code 18825421. Callers outside the U.S. and Canada should dial +61-2-8199-0299
and enter access code 18825421.

About Zoom Technologies, Inc.

Zoom Technologies, Inc. (Nasdaq:ZOOM)(the "Company"), is a holding company
that expects to invest in mobile and telecommunications businesses.

Forward-Looking Statements

Certain statements in this press release may constitute "forward looking
statements" that involve risks and uncertainties. These include statements
about our expectations, plans, objectives, assumptions or future events in
which the outcome cannot be assured. You should not place undue reliance on
these forward-looking statements. Information concerning factors that could
cause our actual results to differ materially from these forward-looking
statements can be found in our periodic reports filed with the Securities and
Exchange Commission. We undertake no obligation to publicly release revisions
to these forward-looking statements to reflect future events or circumstances
or reflect the occurrence of unanticipated events.

ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                               
                                                               
                                                  SEPTEMBER 30, DECEMBER 31,
                                                   2013          2012
                                                  (Unaudited)   
ASSETS                                                          
Current assets                                                  
Cash and equivalents                               $1,818,816   $8,351
Restricted cash                                    19,555,440   19,044,294
Other receivables and prepaid expenses             1,217,441    3,989,362
Due from related parties                           13,619,198   20,528,155
Current assets of discontinued operations, held    139,390,295  179,884,224
for sale
Total current assets                               175,601,190  223,454,386
                                                               
Intangible assets                                  349,600      349,600
Long-term investments                              11,754,210   11,912,956
TOTAL ASSETS                                       $187,705,000 $235,716,942
                                                               
LIABILITIES AND EQUITY                                          
Current liabilities                                             
Notes payable                                      350,937      --
Accounts payable                                   36,948       38,695
Accrued expenses and other payables                535,530      1,237,505
Purchase deposit from buyer                        8,240,490    8,740,490
Taxes payable                                      22,951       22,334
Due to related parties                             2,966,000    5,362,597
Warrant liability                                  --           7,340
Current liabilities of discontinued operations     140,007,731  155,343,024
Total current liabilities                          152,160,587  170,751,985
                                                               
Long-term notes payables                           --           317,500
TOTAL LIABILITIES                                  152,160,587  171,069,485
                                                               
COMMITMENTS AND CONTINGENCIES                                   
                                                               
EQUITY                                                          
STOCKHOLDERS' EQUITY                                            
Preferred stock: authorized 1,000,000 shares, par  --            --
value $0.01 none issued and outstanding
Common stock: authorized 60,000,000 shares, par
value $0.01; 3,008,517 shares issued and
outstanding at September 30, 2013; 2,932,085       30,085       29,319
shares issued and 2,931,917 shares outstanding at
December 31, 2012
Treasury shares: 168 shares at cost                (7,322)      (7,322)
Additional paid-in capital                         52,625,042   51,372,282
Statutory surplus reserve                          737,623      702,539
Accumulated other comprehensive income             2,739,347    4,058,655
Accumulated deficit                                (22,416,508) (4,098,798)
TOTAL STOCKHOLDERS' EQUITY                         33,708,267   52,056,675
Non-controlling interest                           1,836,146    12,590,782
TOTAL EQUITY                                       35,544,413   64,647,457
                                                               
TOTAL LIABILITIES AND EQUITY                       $187,705,000 $235,716,942



ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                              
                     THREE MONTHS ENDED          NINE MONTHS ENDED
                      SEPTEMBER 30,               SEPTEMBER 30,
                     2013            2012        2013            2012
                     (Unaudited)     (Unaudited) (Unaudited)     (Unaudited)
                                                              
Net revenues          $--            $--        $--            $--
Cost of sales         --             --         --             --
Gross profit          --             --         --             --
                                                              
Operating expenses:                                            
Selling, general, and
administrative        110,308        135,646    885,947        869,938
expenses
Non-cash equity-based 132,259        758,592    777,924        2,030,151
compensation
Total operating       242,567        894,238    1,663,871      2,900,089
expenses
Loss from operations  (242,567)      (894,238)  (1,663,871)    (2,900,089)
                                                              
Other income and                                               
(expenses)
Interest income       314            1          314            12
Interest expense      (8,006)        (901)      (153,199)      (27,151)
Change in fair value  4              523,078    7,340          523,078
of warrants
Investment gain       174,895        (423,630)  (158,746)      (423,630)
(loss)
Other (expense)       (309,838)      1,105      778            (293)
income, net
Other income          (142,631)      99,653     (303,513)      72,016
(expense), net
                                                              
Loss before income
taxes and             (385,198)      (794,585)  (1,967,384)    (2,828,073)
noncontrolling
interest
Income taxes for      --             11,289     109,517        11,289
continuing operations
                                                              
Loss attributable to
Zoom Technologies,    (385,198)      (805,874)  (2,076,901)    (2,839,362)
Inc. from continuing
operations
                                                              
Discontinued                                                   
Operations:
(Loss) income from
discontinued          (3,680,361)    1,748,821  (4,226,587)    5,064,578
operations, net of
tax
less: (loss) income
attributable to
noncontrolling        (616,946)      190,633    (729,690)      177,708
interest from
discontinued
operations
                     (3,063,415)    1,558,188  (3,496,897)    4,886,870
                                                              
Loss on disposal, net (10,642,204)   --         (12,708,828)   --
tax
                                                              
(Loss) income
attributable to Zoom
Technologies, Inc.    (13,705,619)   1,558,188  (16,205,725)   4,886,870
from discontinued
operations
                                                              
Net (loss) income
attributable to Zoom  $ (14,090,817) $752,314   $ (18,282,626) $2,047,508
Technologies, Inc.
                                                              
Basic and diluted
loss per common share                                          
from continuing
operations:
Basic                 $(0.13)       $(0.28)   $(0.69)       $(1.07)
Diluted               $(0.13)       $(0.28)   $(0.69)       $(1.07)
                                                              
Basic and diluted
(loss) income per
common share from                                              
discontinued
operations:
Basic                 $(4.57)       $0.54      $(5.42)       $1.85
Diluted               $(4.57)       $0.54      $(5.42)       $1.85
                                                              
Basic and diluted
(loss) income per                                              
common share
Basic                 $(4.70)       $0.26      $(6.11)       $0.77
Diluted               $(4.70)       $0.26      $(6.11)       $0.77
                                                              
Weighted average
common shares                                                  
outstanding:
Basic                 2,999,387       2,911,470   2,990,836       2,643,145
Diluted               2,999,387       2,911,470   2,990,836       2,646,830



ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                                               
                      THREE MONTHS ENDED          NINE MONTHS ENDED
                       SEPTEMBER 30,               SEPTEMBER 30,
                      2013            2012        2013            2012
                      (Unaudited)     (Unaudited) (Unaudited)     (Unaudited)
                                                               
Net (loss) income
attributable to Zoom   $ (14,090,817) $752,314  $ (18,282,626) $ 2,047,508
Technologies, Inc.
Net (loss) income
attributable to        (616,946)      190,633    (729,690)      177,708
noncontrolling
interest
                                                               
Other comprehensive                                             
income:
Foreign currency
translation (loss)     (2,097,745)    (333,330)  (1,319,310)    56,387
gain - Zoom
Technologies, Inc.
Foreign currency
translation (loss)     (762,769)      588        (568,160)      24,481
gain - noncontrolling
interest
                                                               
Comprehensive (loss)
income Zoom            (16,188,562)   418,984    (19,601,936)   2,103,895
Technologies, Inc.
Comprehensive (loss)
income noncontrolling  $(1,379,715)  $191,221  $(1,297,850)  $202,189
interest



ZOOM TECHNOLOGIES, INC., AFFILIATES & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                               
                                                NINE MONTHS ENDED
                                                 SEPTEMBER 30,
                                                2013            2012
                                                (Unaudited)     (Unaudited)
                                                               
Cash flows from operating activities:                           
Net (loss) income attributable to Zoom           $ (18,282,626) $ 2,047,508
Technologies, Inc.
Adjustments to reconcile net (loss) income
attributable to Zoom Technologies Inc. to cash                  
provided by (used in) operating activities:
                                                               
(Loss) income attributable to noncontrolling     (729,690)      177,708
interest from discontinued operations
Depreciation and amortization                    844,603        1,268,053
Non-cash equity-based compensation               777,924        2,030,151
Provision for inventory obsolescence             --            361,039
Provision on accounts receivable                 2,518,987      1,559,674
Loss on disposal                                 12,708,828     --
Loss on investment in joint venture              158,746        423,630
Fair value adjustment on warrants                (7,340)        (523,078)
Changes in deferred tax assets                   --            56,649
Changes in operating assets and liabilities:                    
Accounts receivable                              (3,160,104)    (38,096,887)
Inventories                                      (6,076,358)    (5,256,775)
Advances to suppliers                            (29,449)       (728,846)
Prepaid expenses and other assets                9,431,490      (5,713,871)
Accounts payable                                 8,768,972      24,834,057
Advance from customers                           (203,745)      2,026,810
Related parties-net                              (434,012)      3,998,291
Accrued expenses and other current liabilities   2,752,907      6,278,056
Net cash provided by (used in) operating         9,039,133      (5,257,831)
activities
                                                               
Cash flows from investing activities:                           
Restricted cash                                  (3,390,538)    (792,581)
Purchase of property and equipment and other     (727,785)      (359,098)
long-term assets
Proceeds from collection on notes receivable     234,078        (5,384,577)
Cash disposed upon disposal of subsidiary        (740,616)      --
Equity method investee                           --            (12,364,270)
Refund from factory construction deposit         --            10,261,417
Net cash used in investing activities            (4,624,861)    (8,639,109)
                                                               
Cash flows from financing activities:                           
Proceeds from loans                              23,042,792     3,201,559
Repayment to loans                               1,134          (1,506,339)
Repayment on notes payable                       --            (4,457,729)
Receipt from related parties                     103,721        25,697,445
Payments to related parties                      (20,173,332)   (6,379,117)
Repayments on long-term loan                     --            (7,250)
Net cash provided by financing activities        2,974,315      16,548,569
                                                               
Effect of exchange rate changes on cash &        (515,174)      21,228
equivalents
                                                               
Net increase in cash and equivalents             6,873,413      2,672,857
                                                               
Cash and equivalents, beginning of period        3,676,275      1,131,109
Cash and equivalents of continuing components    8,351          22,158
Cash and equivalents of discontinued components  3,667,924      1,108,951
                                                               
Cash and equivalents, end of period              $ 10,549,688    $ 3,803,966
Cash and equivalents of continuing components    1,818,816       11,484
Cash and equivalents of discontinued components  8,730,872       3,792,482
                                                               
SUPPLEMENTARY DISCLOSURES:                                      
Interest paid                                    $ 2,136,419     $ 1,924,763
Income tax paid                                  $ 109,517       $ 2,813,825

CONTACT: Investor Contact:
         Investor Relations
         Zoom Technologies, Inc.
         +86-10-5935-9576
         ir@zoom.com

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