Microsoft, China Chooses E-Mobile Information Technologies —EMTK— Wholly Owned CHL Technologies as One of the Top 20 Companies out of 200 Competitors to Co-Market its ``Smart'' Phone Services in China

Business Wire, August 31, 2004

PLANO, Texas -- After evaluation of its capabilities in Microsoft's 2004 Mobile Application Competition, China, the Company was selected as one of the top 20 companies to establish a close partnership with Microsoft to market Smart phone value-added services. This signifies the development of a close marketing relationship with Microsoft for commercial business expansion.

Initially, Microsoft informed the Company that it wants to work with CHL's mobile publishing system -- which allows users to download and read online books, as well as allows writers to publish their books on CHL's website and subsequently be downloaded to a user's cell phone. In the near future, Microsoft, China will commercially promote and recommend CHL's Mobile Publishing system to cell phone OEM manufacturers and value-adding service providers.

Microsoft has also invited CHL to become a full member in the wireless sector for its partnership support program. Through this exposure, free Microsoft information services will be made available to augment profit capabilities. Technical and non-technical support will be provided by Microsoft free-of-charge. This initial program could also provide a springboard for further penetration of the Company's products and services into the Microsoft world.

This important milestone for CHL Technologies is the first of potentially many opportunities that can become available in the wireless sector as its technical expertise, solid management team, and superior products and services gain increased recognition.

According to the report, "3G Network deployments in China" by In-Stat/MDR, in China alone there are about 270 million cell phones in operation with growth expected to reach near 500 million by 2008. "Smart phones Rising: 10 Things You Should Know About This Segment" report by In-Stat/MDR indicates smart phone shipments will experience a 44% Compound Annual Growth Rate (CAGR) over the next five years.

About CHL Technologies

Taking a different road from most mobile application and content groups whose primary focus is Java, SMS, and MMS, CHL Technologies focuses on developing and marketing innovative mobile applications and wireless value added services for smart phones. The result is that CHL Technologies is ahead of its competitors in ready applications and contents for the new smart phone, putting the company at an excellent position for the up-coming 3G content market. CHL has committed to becoming the leading provider of these high tech services internationally. Its website is www.chltec.com.

Forward-Looking Statements

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