Hurray! News
Hurray! Announces Notice of China
Unicom Penalty
BEIJING, April 26, 2006/Xinhua-PRNewswire/ -- Hurray! Holding Co.,
Ltd. (Nasdaq: HRAY - News), a leader in wireless music distribution
and other wireless value-added services, artist development and
music production, and wireless value-added services management software
in China, today announced that Beijing Hutong, one of Hurray!’s
affiliated operating companies which provides wireless value-added
services, has received from China Unicom a notice of penalty of
approximately US$0.4 million due to the violation of certain Unicom
billing policy by one of its WAP services in October 2005. In addition,
China Unicom has ordered suspension of the relevant WAP service.
A charge related to the penalty will be recorded by the Company
in the first quarter of 2006. In addition, the Company expects that
the suspension of the above mentioned WAP service will negatively
impact its revenue generated by the service going forward.
Upon receiving the penalty notice for the October 2005 violation,
Hurray! management immediately took actions to further tighten operational
control and is actively working with China Unicom to ensure full
compliance with all China Unicom service policies and regulations.
About Hurray! Holding Co., Ltd.
Hurray! is a leading provider of music and music-related products
such as ringtones, ringbacktones, and truetones to mobile users
in China through SMS, IVR, RBT, WAP, MMS and Java wireless value-added
services platforms over mobile networks and through the Internet.
The company also provides a wide range of other wireless value-added
services to mobile users in China, including games, pictures and
animation, community, and other media and entertainment services.
In addition, Hurray! is a leader in artist development, music production
and offline and online distribution in China through its majority
controlled record labels Huayi Brothers Music and Hurray! Freeland
Music.
Hurray! also designs, develops, sells and supports a service provisioning
and management software for mobile operators in China to manage
wireless value-added services.
Forward-looking Statements
This press release contains statements of a forward-looking nature.
These statements are made under the "safe harbor" provisions
of the U.S. Private Securities Litigation Reform Act of 1995. You
can identify these forward-looking statements by terminology such
as "will," "expects," "believes" and
similar statements. The accuracy of these statements may be impacted
by a number of business risks and uncertainties that could cause
actual results to differ materially from those projected or anticipated,
including risks related to: Hurray!'s ability to maintain its leading
position in the market for wireless value-added services in China,
including its ability to anticipate or address changes in technologies
and user preferences in an effective and timely manner; the risk
that Hurray's profitability may be adversely affected in future
periods for a variety of reasons, many of which may be beyond management's
control; the state of Hurray!'s relationships with China's mobile
operators; the possibility that the penalty discussed in this press
release will have a material advance affect on 2006 gross revenues,
in which case Hurray!'s financial condition could be adversely affected;
the risk that China Unicom or other mobile operators in China will
impose additional penalties on Hurray!, and other risks outlined
in Hurray!'s filings with the Securities and Exchange Commission,
including its registration statement on Form F-1, as amended. Hurray!
does not undertake any obligation to update this forward-looking
information, except as required under applicable law.
For more information, please contact:
Phoebe Meng
Investor Relations Manager
Tel: 8610-6518-8989 x 6806
yfmeng@hurray.com.cn
SOURCE: Hurray! Holding Co., Ltd.
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