#multimedia message

Beyond Text: Unleashing the Power of Multimedia Messaging

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18:00 (network in the sky (Nasdaq on August 14 America eastern time: KONG) Today is released and audited the wealth newspaper until the second quarter of 2008 of June 30. The report reveals, the chief camp charges for 23,520,000 dollars in the network second quarter in the sky, increase by 10% compared with the previous quarter, increase by 39% compared with the same period of last year; The net profit is 300,000 dollars, increase by 241% compared with the previous quarter, increase by 669% compared with the same period of last year.

Main achievement:

-The chief camp charges for 23,520,000 dollars in the network second quarter in the sky, increase by 10% compared with the previous quarter, exceed the intersection of company and anticipated 22 million dollars to 23 million dollars before the this;

-The network always moves advertising camp to charge for 357,000 dollars in the second quarter, increase by 68% compared with the previous quarter in the sky;

-According to the intersection of U.S.A General Motors Corporation and accounting criterion, the net profit is 30,000 dollars aerial second quarter such as network, it is 0.01 dollars that U.S.A. per share deposits and holds the thin income of evidence stand;

-Not according to the intersection of U.S.A General Motors Corporation and accounting criterion, the net profit is 1,060,000 dollars aerial second quarter such as network, it is 0.03 dollars that U.S.A. per share deposits and holds the thin income of evidence stand.

Financial analysis:

The chief camp charges for 23,520,000 dollars in the network second quarter in the sky, increase by 8% compared with the previous quarter.

Total wireless value-added service camp of second quarter charges the network for 23,130,000 dollars, increase by 9% compared with the previous quarter in the sky. Network 2.5G serves in the second quarter the proportion is about 33% in the camp of total wireless value-added service accepts in the sky, the proportion is about 67% in the camp of total wireless value-added service accepts that 2G serves in the second quarter.

2.5G service of second quarter of the network (including WAP, multimedia message and Java technology etc.) in the sky The camp charges for 7,720,000 dollars, increase by 15% compared with the previous quarter.

In the second quarter of 2008, network WAP serves the camp to charge for 2,970,000 dollars, glides 3% than the previous quarter in the sky. MMS camp of second quarter charges the network for 4,430,000 dollars, increase by 54% compared with the previous quarter in the sky. Java camp charges for 330,000 dollars in the network second quarter in the sky, glide 58% than the previous quarter.

2G service of second quarter of the network (including message, mutual voice response and color ring etc.) in the sky The camp charges for 15,400,000 dollars, increase by 7% compared with the previous quarter.

In the second quarter of 2008, message service camp charges the network for 10,300,000 dollars, increase by 7% compared with the previous quarter in the sky. It is 3,150,000 dollars that the mutual voice response in the second quarter of network serves the camp and charges in the sky, increase by 10% compared with the previous quarter. The color ring serves the camp to charge for 1,950,000 dollars in the network second quarter in the sky, glide 1% than the previous quarter.

The camp that the net comes from CHINAUNICOM, China Telecom and China Netcom in the second quarter accepts in the camp of total wireless value-added service accepts the proportion is about 26% in the sky, the proportion is about 74% that the camp from China Mobile accepts in the camp of total wireless value-added service accepts.

Is 12,530,000 dollars that the camp charges the cost in The wireless second quarter of value-added service of network in the sky, increase by 8% compared with the previous quarter. The gross margin percentage is 46% in The wireless second quarter of value-added service of network in the sky, higher than 45% of the previous quarter.

The operation expenditure is 8,500,000 dollars in The wireless second quarter of value-added service of network in the sky, increase by 15% compared with the previous quarter. The product development expenditure of second quarter of the network is 1,930,000 dollars in the sky, 8% which company's camp accepted in other words; General affairs and administrative expenditure are 2,820,000 dollars, 12% which company's camp accepted in other words; Sell and the marketing expenditure is 3,740,000 dollars, 16% which company's camp accepted in other words.

The advertising camp of total mobile phone of the net second quarter charges for 357,000 dollars, is higher than 212,000 dollars in previous quarter in the sky, main because the camp of website of wireless internet of the aerial network accepts and increases.

In the second quarter of 2008, the operation expenditure correlated to door of wireless internet of network in the sky is 2,800,000 dollars, including marketing and advertising expenditure of 1,340,000 dollars.

By June 30, 2008, staff's total number of aerial networks is 855 people, are higher than up to 817 people on March 31, 2008.

According to the intersection of U.S.A General Motors Corporation and accounting criterion, the net profit is 90,000 dollars aerial second quarter such as network, U.S.A. per share deposits and asks the evidence to be basic and the thin income of stand is 0.01 dollars.

Not according to the intersection of U.S.A General Motors Corporation and accounting criterion, the net profit is 1,060,000 dollars aerial second quarter such as network, it is 0.03 dollars that U.S.A. per share deposits and holds the thin income of evidence stand.

By March 31, 2008, the cash of the aerial network and equivalent total value of the cash are 130,630,000 dollars. It is 4,650,000 dollars that the cash from operation activity in the second quarter of network is flowed into in the sky.

Business prospect:

The network is expected in the third quarter of 2008 the chief camp will charge in order that from 23,500,000 dollars to 24,500,000 dollars in the sky.

Telephone conference:

Nokia Siemens network company and Telefó nica O2 Previous multimedia information (MMS) recently of European company The chassis agreement has been extended.

In the new contract, MMS solution that Nokia Siemens Company will continue carrying the end in offering and integration, including the multimedia message centre (MMSC) of Nokia Siemens network , Profile server and multimedia application gateway.