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Vtion Wireless Technology AG: Unit sales up by 22% from October to November 2009

Frankfurt, 15. December 2009

The Vtion Group, one of the three leading suppliers of wireless data solutions for mobile computer use in China, has seen an increase in monthly sales volume in November; for the month of November 2009 the Vtion Group sold a total of 180,521 data cards. Compared to November 2008 the unit sales grew by 282 per cent. The development also represents an increase of 22 per cent compared with the previous month (October 2009). With RMB 342 the average selling price were lower in November compared to October. To date, Vtion has sold a total of nearly 1.46 million data cards for the full year 2009. This development keeps the company on pace to hit the lower end of its full-year guidance.

"Our sales numbers for November are consistent with what we expected, which was to see a substantial improvement over October, which had lower sales numbers due to the 60th Anniversary National Day Holiday and the resulting lower number of working days. This keeps us on pace for what we expect for the full year 2009, which is pleasing to see. We see that China Telecom is nearing its new-user quota target for 2009, but nevertheless expect continuing strong growth for China Telecom into 2010. We also expect from China Unicom and secondly from China Mobile increased growth following the continuation of their network rollouts" says Guoping Chen, CEO of Vtion Wireless Technology AG. He continued: "The average selling price within the individual data card segments remained pleasingly stable in November compared to October. However, Vtion saw a seasonally expected shift towards low end cards in the demand particularly from China Unicom in November. As a result the average selling price decreased to RMB 342 (October approx. 400 RMB)".

The Chinese wireless network industry is currently going through a process of market development from second generation networks to network standards of the third mobile phone generation - known as 3G standards. China is the only country in the world with three different 3G wireless standards, the CDMA 2000 EVDO Network operated by China Telecom, the WCDMA Network operated by China Unicom and the TD-SCDMA Network operated by China Mobile. Network rollouts for the latter two networks are still in progress; the Vtion Group is expecting the completion of the establishment of 3G mobile networks to lead to a further increase in demand for wireless data cards in China.

 

About Vtion

The Vtion Group is one of the three leading suppliers of wireless data cards and associated services for the mobile use of computers via broadband wireless networks in the People's Republic of China. The Vtion Group concentrates mainly on the development and sale of wireless data cards, including provision of appropriate after-sales services. The Vtion Group also supplies Internet-based data service solutions. The company has about 150 employees. The Vtion Group generated sales of EUR 39.2 million and a net profit of EUR 12.4 million in 2008. The Vtion Wireless Technology AG shares are being traded in the Prime Standard on the Frankfurt Stock Exchange with the ISIN DE000CHEN993. The company's ticker symbol is V33.

 

For further information, please contact:

Kirchhoff Consult AG
Dr Kay Baden, tel.: +49 40 60 91 86 0, baden@kirchhoff.de
Janina Wismar, tel.: +49 40 60 91 86 50, janina.wismar@kirchhoff.de

 

Disclaimer concerning prognoses
Certain statements in this communication contain formulations or terms referring to the future or future developments, as well as negations of such formulations or terms, or similar terminology. These are described as forward-looking statements. In addition, all information in this communication regarding planned or future results of business segments, financial classification numbers, developments of the financial situation, or other financial or statistical data contains such forward-looking statements. The company cautions prospective investors not to rely on such forward-looking statements as certain prognoses of actual future events and developments. The company is neither responsible nor liable for these forward-looking statements. It is not responsible for updating such information, which only represents the state of affairs on the day of publication.

 

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