Qiao Xing Universal Telephone, Inc. announced that it recently obtained from a company qualified to operate VoIP telephony in China and abroad the exclusive agency rights for twelve years of research and development, production, sales and operation of VoIP telephony terminal products and other related products.

As represented, the principal customer orders of this operator of VoIP telephony business come from outside China. Following the large-scale opening-up of the China market for the VoIP business, with its first-mover advantage, this operator is poised to become one of the main operators of VoIP telephony business in China.



Based on the agreement reached by XING and that operator, it is expected that for the year 2006, the gross profit from VoIP terminal products and the share of profit from activities relating to VoIP operations could reach US$1.5 million and US$15 million respectively. In view of the huge market potential of the VoIP business both in and out of China, it is expected that XING's VoIP business would grow 120% per year from 2006 to 2008.

Mr. Wu Rui Lin, Chairman of XING, said, ''This operator has been attracted by our strong research and development capabilities in the communication terminal field and our extensive distribution network. Relying on the investment on the research and development on communication terminal products and on the experience accumulated in all these years, we hope to be able to bring in more projects of value-added products and services to work jointly with that company, and to be able to attract more partners, both local and overseas, to work together.

''Securing this agency right from the VoIP telephony operator further signifies that XING is extending its business focus from traditional research and development, marketing and manufacturing of communication terminal products to internet-related industries and their operations. A few years from now, high value-added activities ranging from internet communication operations to internet games will become XING's main direction of business development.''