China Mobile Forms Strategic Alliance with Phoenix

China Mobile Forms Strategic Alliance with Phoenix

Its Holding Company to acquire 19.9% of Phoenix from STAR

BEIJING and HONG KONG, June 8 /Xinhua-PRNewswire-FirstCall/ -- China Mobile Limited ("China Mobile"; NYSE: CHL; HKSE: 941) and Phoenix Satellite Television Holdings Limited ("Phoenix") announced today a strategic alliance to jointly develop, market and distribute wireless content, products, services and new media applications.

The announcement follows the purchase of a 19.9% interest in Phoenix from STAR Group Limited ("STAR") by China Mobile (Hong Kong) Group Limited, China Mobile's holding company. After the transaction, STAR will continue to hold 17.6% of Phoenix.

Under the strategic alliance agreement, China Mobile and Phoenix will jointly develop products and services relating to the wireless delivery of media content. In exchange for direct access to China Mobile's network and customer base on favourable terms, China Mobile will have preferential access to Phoenix's news and selected programs. The deal will complement China Mobile's 3G strategies by widening its service offerings and providing enhanced media content to its mobile subscribers, and will broaden Phoenix's new media content's access to China mobile's customer base.

Wang Jianzhou, Chairman and Chief Executive Officer of China Mobile, said, "Phoenix offers a unique set of content to the Chinese community globally. By leveraging Phoenix's media content via our mobile platform, China Mobile will be well positioned to provide wireless multimedia services to our customers."

Liu Changle, Chairman and Chief Executive Officer of Phoenix, said, "I am very pleased that we have established this strategic partnership with a world- class mobile telecommunications operator, such as China Mobile. The establishment of this new strategic alliance will provide an excellent opportunity for the further development of Phoenix's new media business, and should have a very positive impact on Phoenix's long-term commercial prospects, enabling Phoenix to distribute its content through China Mobile's wireless platform and reach a broader market."

Michelle Guthrie, Chief Executive Officer of STAR, said, "As one of the founders of Phoenix, we take great pride in its accomplishments over the past ten years. We believe that bringing in China Mobile as a shareholder and strategic partner will create incredible growth opportunities for Phoenix in the future. We look forward to our continued involvement in Phoenix as the company extends its content to the largest wireless customer base in the world."

Goldman Sachs is acting as financial advisor to China Mobile. Merrill Lynch is acting as financial advisor to STAR.

About China Mobile

China Mobile is a leading mobile telecommunications service provider in China, providing mobile voice and data telecommunications and related services to all 31 provinces, municipalities and autonomous regions in the mainland as well as being one of the major mobile telecommunications service providers in Hong Kong. As of 30 April 2006, China Mobile had an aggregate mobile telecommunications subscriber base of nearly 265 million, the largest worldwide.

About Phoenix

Phoenix is one of the leading broadcasters in Hong Kong and mainland China aiming to provide quality content to Chinese communities all around the world. Today, Phoenix Chinese, Phoenix Movies, Phoenix InfoNews, Phoenix Chinese News and Entertainment and Phoenix North America Chinese channels together broadcast to audiences in the Asia Pacific, as well as in Europe, North America and North Africa, covering more than 100 countries and regions.

About STAR

STAR is a leading media and entertainment company in Asia. STAR broadcasts over 50 television services in nine languages to more than 300 million viewers across 53 Asian countries. STAR channels cover all genres including general entertainment, sports, movies, and news & current affairs. STAR controls over 20,000 hours of Indian and Chinese programming and also owns the world's largest contemporary Chinese film library. In partnership with leading companies in Asia, STAR businesses extend to filmed entertainment, television production, cable systems, direct-to-home services, terrestrial TV broadcasting, wireless and digital services. STAR is a wholly owned subsidiary of News Corporation.

For press enquiries, please contact:

China Mobile
Mr. Guan Yimin or Ms. Rainie Lei
Tel: +852-3121-8888
Fax: +852-3121-8809

Phoenix
Ms. Wang Duo Duo or Ms. Lizzie Cheung
Tel: +852-9473-1654 / +852-9210-9538
Fax: +852-2621-7400

STAR
Ms Jannie Poon / Mr Allen Chen
Tel: +852-2621-8619 / +86-10-8518-8500
Email: janniep@startv.com / yhchen@cn.startv.com

Source: China Mobile Limited; Phoenix Satellite Television Holdings Limited

CONTACT: Mr. Guan Yimin or Ms. Rainie Lei of China Mobile, +852-3121-
8888, or fax, +852-3121-8809; orMs. Wang Duo Duo or Ms. Lizzie Cheung Phoenix,
+852-9473-1654, or +852-9210-9538, or fax, +852-2621-7400; Ms Jannie Poon or
Mr Allen Chen of STAR, +852-2621-8619, +86-10-8518-8500, or
janniep@startv.com, or yhchen@cn.startv.com

-------
Profile: intent