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Vtion Wireless Technology AG: Unit sales up by 7.4% from November to December 2009

Frankfurt, 14. January 2010

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 December; for the month of December 2009 the Vtion Group sold a total of 193,840 data cards. Selling prices remained lower than in previous months, due to a typical rise in year end demand for low-end products among telecom operators, but recovered somewhat from the decrease seen in November to average 349 RMB for the month of December. Compared to December 2008 the unit sales grew by approx. 529 per cent. The development also represents an increase of approximately 7.4 per cent compared with the previous month (November 2009). For the year 2009, Vtion sold a total of approximately 1.65 million data cards, which is in line with analyst and company estimates for full year sales volume.

"Though the year-end holding position we are seeing from the telecom operators is still in effect, we observe that they are continuing to purchase at stable volumes in order to meet current demand at a time when network rollouts are still in the relatively early stages" says Guoping Chen, CEO of Vtion Wireless Technology AG. "The fact that there was a slight rebound in our average sales price, from 342 RMB to 349 RMB, means that although we are experiencing an increase in the demand for low-end products towards the end of the year, the superior quality of our high-end products remains attractive to our customers. We are continuing to work closely with the telecom operators as they prepare to ramp up their network and user base development around the time of the Chinese New Year (mid-February 2010). Vtion remains a steady and faithful partner of the telecom operators to develop China's 3G market together," he continues. Mr. Chen also notes, "In 2008, Vtion's December sales were lower than November 2008, but in 2009 we saw an increase from November to December, which highlights the change that 3G has brought to our market. We know that 2010 will be an important year for China's telecom operators and 3G in China."

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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