TechFaith Licenses Dilithium’s 3G-324M Video Telephony Stack

Petaluma, CA and Beijing, China — July 25, 2007— Dilithium and China TechFaith Wireless Communication Technology Limited, a leading handset application software and handset solution provider based in China, has licensed Dilithium’s market leading 3G-324M video telephony stack software. TechFaith has also entered into an OEM agreement with Dilithium. TechFaith designs and develops mobile handset software and design solutions and will incorporate Dilithium’s stack into their WCDMA video handsets. 

“The Chinese wireless market is experiencing phenomenal growth and consumers desire richer forms of wireless communications including video services like real time streaming, video telephony and video blogging.” said Mr. Paul Zuber, CEO of Dilithium.

“The Dilithium 3G-324M stack supports TechFaith’s leadership and innovation in the China Market,” said Mr. Defu Dong, CEO of TechFaith. “The incorporation of Dilithium’s technologies into our handsets will result in video call setup times that are comparable to those of voice calls.  This will reduce wasted network overhead, while significantly improving the customer experience.” 

About Dilithium
Dilithium is the global leader in converged video solutions for the mobile, broadband and internet markets.  Dilithium pioneered 3G video communications and our technologies are deployed by the major network operators, content owners, aggregators and equipment providers. www.dilithiumnetworks.com 

About TechFaith
TechFaith (NASDAQ: CNTF) is one of the largest handset application software and handset solution providers based in China. The Company employs approximately1,400 professionals, of whom 90% are engineers. TechFaith’s three business units are handset design, application software, and Smartphone and Pocket PC. www.techfaithwireless.com

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This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as TechFaith's strategic and operational plans, contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, TechFaith's limited operating history, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, TechFaith's ability to retain existing or attract additional international customers, TechFaith's earnings or margin declines, failure of competing against new and existing competitors, and other risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.