VODone Limited (HKG:0082) Proposes The Acquisition of Dragon Joyce Group to Enhance its Position in the Mobile Lottery Business

Hong Kong, Oct 12, 2009 AEST (ABN Newswire) - VODone Limited ( "VODone" or the "Group"; stock code: HKG:0082)(PINK:VODOF), a leading Chinese new media operator, is pleased to announce its proposed acquisition of 70% interest in the Dragon Joyce Group after entering into a share purchase agreement. The acquisition will further enhance VODone's leading position in the PRC mobile lottery industry and bring increased synergies and opportunities across both the VODone and the Dragon Joyce Group.

The total consideration for the Acquisition is RMB168,000,000. The total consideration will be settled by the VODone with HK$40,000,000 in cash and by issuing 100,789,333 Consideration Shares with issue price of HK$1.50. Two-third of the Consideration Shares has a lock-up period that last until the profit guaranteed period ends. Pursuant to the Agreement, the consideration will be downward adjusted unless the guaranteed net profit before tax of the Dragon Joyce Group by the vendor for the period from 1 October 2009 to 31 December 2009 and the two years ending 31 December 2011 are met:

----------------------------------------------Period Involved Net          Profit Before Tax----------------------------------------------Period from 1 Oct. 2009 to 31 Dec. 2009   RMB13,750,000----------------------------------------------Year ending 31 December 2010  RMB71,500,000----------------------------------------------Year ending 31 December 2011  RMB85,800,000----------------------------------------------

The Dragon Joyce Group is principally engaged in the development and provision of mobile gaming, as well as provision of mobile and internet value-added services. The Dragon Joyce Group develops mobile game platforms for stand-alone games, web games and online games, as well as entertainment software distribution platforms. The Group has an extensive distribution network and has established business relationships with over 300 Chinese-brand mobile handset developers and manufacturers. At present, there are over 670 million mobile phone subscribers in the PRC and a significant portion of this market is occupied by Chinese-brand mobile handsets. The volume of Chinese-brand mobile handsets is expected to maintain continuous growth as the PRC government has directed policies to promote household electrical appliances to rural areas, including low-cost mobile handsets. Through effective distribution channels, there are about 7 million active paying accounts for the games of the Dragon Joyce Group. Given the embedded nature of the games within the mobile phones, the continued growth in mobile phone subscribers and the tremendous growth prospects of mobile games, the Directors believe that the Dragon Joyce Group has good future prospects.

Through combining with the Dragon Joyce Group's extensive distribution network of over 300 mobile handset developers and manufacturers distributing its games to an average of 1.2 million new mobile handset users each month, VODone will be in a much stronger position to capture the mobile and internet gaming and lottery market. From a distribution perspective, the Acquisition will add to the Company's mobile lottery platform with immediate access to a significant pool of potential lottery users and maintain a leading position in mobile gaming as well as proprietary mobile games. There are about 7 million active paying accounts for games of the Dragon Joyce Group which are mainly users of relatively low-cost Chinese-brand mobile handsets. These users will be potential lottery players and therefore the Acquisition will benefit the Company by drawing in a greater client base.

According to Dr. Zhang Lijun, Chairman of VODone, "After many months of efforts of the management and various professional teams, we are pleased to enter into the share purchase agreement with the Dragon Joyce Group. The Dragon Joyce Group is a mobile game software developer in the PRC with excellent growth prospects. Since the Dragon Joyce Group currently has about 7 million active paying users, the Group considers that the Acquisition will bring synergies in the marketing and distribution of the Group's Mobile Lottery business through its strategic partner VODone Telemedia, as the Dragon Joyce Group distribute and promote its games to an average of 1.2 million new mobile handset users each month. The Group is attracted to the effective distribution channels of the mobile games. The Group considers that the Dragon Joyce Group has good future prospects as mobile games are expected to experience a sustained growth. It is believed that the Acquisition will bring increased synergies and opportunities across both the Company and the Dragon Joyce Group."

AID Partners, a private equity investment holding company primarily makes investments in both listed and non-listed equities in Asia, introduced VODone to the Dragon Joyce Group. AID Partners had originally obtained a right to subscribe for 500 shares of the Dragon Joyce Group for a consideration of US$13 million pursuant to a subscription agreement. Pursuant to this Acquisition, AID Partners has agreed to forgo its subscription right whereby in return, VODone has offered AID Partners a right to subscribe for new Shares at a subscription amount of not more than RMB100,000,000 and at such price per Share to be agreed by the parties on either the date of completion of the Agreement or before 30 November 2009, whichever date is the earlier.

This press release is distributed by Wonderful Sky Financial Group Limited on behalf of VODone Limited.

Contact

For further information, please contact: Wonderful Sky Financial Group Limited Joanne Chan / Lydia Leung/ Rebecca Huang/ Katherine Kwok Tel: (852) 2851 1038 Fax: (852) 2815 1352 E-mail:joannechan@wsfg.hk / lydialeung@wsfg.hk/ rebeccahuang@wsfg.hk/ katherinekwok@wsfg.hk