Hurray! News
Hurray! to Acquire 30% Stake in
New Run Entertainment (Niao Ren)
BEIJING, November 9, 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 the signing of definitive agreements to
acquire a 30% equity interest in Beijing New Run Entertainment Co.
Ltd., a leading independent record label in China.
New Run Entertainment specializes in music production and distribution
for its portfolio of artists which include some of the most popular
singers in China, such as Pang Long, Nanhe Beidou, Chang Hai, Da
Mai and Han Dong. Many songs produced by New Run Entertainment and
its artists, such as "Liang Zhi Hu Die (Two Butterflies)"
and "Ni Shi Wo De Mei Gui (You Are My Roses) ", were not
only top hits in ringtones, ringback tones and full track downloads
on mobile phones in China, but also ranked Number 1 on Baidu’s music
search platform and China Mobile’s wireless music board.
In the acquisition, Hurray! will invest a total of $2.25 million
in cash for a 30% equity interest of New Run Entertainment. The
consideration payable by Hurray! and the respective ownership interests
of the parties in New Run Entertainment are subject to adjustment
based on 12 months financial performance of New Run Entertainment
following the close of the acquisition. The transaction is expected
to be accretive to Hurray!’s earnings. Hurray! currently expects
the transaction to close before December 31, 2006, subject to certain
regulatory approvals and customary closing conditions in China.
Commenting on this acquisition, QD Wang, Chairman and Chief Executive
Officer of Hurray!, said, "We are very pleased to announce
this strategic partnership with New Run Entertainment, a premium
record label in China with strong track record. This further enhances
our market leadership in music content and production capabilities,
and takes us one step closer toward our goal of becoming a leading
digital entertainment house in China."
China eCapital served as financial advisor to Hurray! in the transaction.
About Hurray! Holding Co., Ltd.
Hurray! is a leading provider of music and music-related products
such as ringtones, ringback tones, 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.
About Beijing New Run Entertainment Co., Ltd.
Beijing New Run Entertainment Co., Ltd.("New Run Entertainment")
is one of the leading domestic record labels in China, which focuses
on music development and production and record distribution, as
well as the agency business for its artists.
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," "anticipates,"
"future," "intends," "plans," "believes,"
"estimates" 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: the risk that this or any future
acquisition will not create the operational and financial results
that Hurray!'s management and board of directors expects, including
in particular the possibility that this acquisition may not be accretive
to earnings in any future period or that Hurray! may not become
a leading digital entertainment house in China; the risk that Hurray!
will not be able to effectively manage the artists employed by its
music businesses or effectively utilize their libraries of music;
the risk that this and any future acquisition could divert management's
attention from Hurray!'s operations, which could adversely affect
its results of operations; and the risks outlined in our filings
with the Securities and Exchange Commission, including our registration
statement on Form F-1. We do 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: 8610-84555532
yfmeng@hurray.com.cn
SOURCE: Hurray! Holding Co., Ltd.
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