Distribution Alliance in Preparation for 3G's Arrival in China

28 June , 2005

US : TOM Online announced today a strategic alliance in the run-up to 3G, forging closer relationships to distribute advanced multimedia products on wireless and online platforms and in TCL shops across China.

Already the largest wireless Internet service partner of TCL, TOM Online will further strengthen the provision of its 2.75G wireless products in preparation for the arrival of 3G in China, and focus on the Company's edge in music, entertainment and sports content. TOM Online also will help install computer links at all TCL handsets points of sales in China to promote the Company's range of wireless services.

Wang Lei Lei, TOM Online Chief Executive Officer, said: 'This partnership between TCL Mobile and TOM Online, both leading players in their respective industry, signifies the confidence we have in the development of mobile- related media-rich content in China. TCL's proven expertise in producing popular handsets based on advanced technologies will help TOM Online maintain its leading position as a preferred wireless content provider in the run-up to 3G.'

TOM Online is one of the earliest providers of 3G content to third- generation mobile network service operator, 3 Hong Kong. Future 3G services to be embedded in TCL handsets may include products based on TOM Online's popular ringtone, audio/video clips, Flash animation and other entertainment and sports-related services.

TCL Mobile, a unit of TCL Communication Technology Holdings Ltd, is the producer of one of the country's top-selling handset brands. It also has formed a joint venture with Alcatel to help expand and consolidate its presence in handset markets overseas.

Liu Fei, TCL Communication Chief Executive Officer, said: 'The cooperation with TOM Online will help ensure the healthy growth of TCL's mobile market by delivering media-rich content applications to fashionable handsets based on advanced technologies. Media-rich content and applications are one of the most important factors that will help ensure the success of 3G in China. And TCL is confident that it will capture opportunities arisen from that.'

Government data shows China had more than 330 million cell phone users at the end of 2004, and that number may grow by another 58 million this year, making it the largest handset market in the world. The country's wireless data market is expected to grow to US$9.25 billion in revenue in 2008 from an estimated US$5.26 billion in 2005, according to technology consultancy Gartner.

As at the end of 4Q 2004, TOM Online leads the China's wireless Internet market with more than 60 cumulative paid wireless service users and is the only portal in China that enjoys a top three ranking in every category of wireless value-added services.

The TCL-TOM Online partnership comes on the heels of TOM Online's announcement on June 20 that it is the sole wireless and the premier Internet distribution partner for Warner Bros. Online in China.

About TOM Online Inc.

TOM Online Inc. (Hong Kong GEM stock code: 8282, Nasdaq: TOMO) is a leading mobile Internet company in China, operating one of the most successful Internet portals in China ( http://www.tom.com ) and offering a wide variety of online and mobile services, including wireless Internet and online advertising. In the wireless Internet arena, TOM Online provides a diverse range of services such as SMS, MMS and WAP, and is the largest player of wireless Internet voice business. As at March 31, 2005, TOM Online is the only portal in China that enjoyed a top three ranking in every wireless Internet service segment.

TOM Online is a subsidiary of TOM Group Limited ('TOM Group'), one of the leading Chinese language media groups in the Greater China region. TOM Group's diverse operations span five media sectors: the Internet (through TOM Online Inc.), outdoor (through TOM Outdoor Media Group), publishing, sports and TV & entertainment.

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