Trunkbow Announces Partnership with Shanghai Telecommunication Engineering Co.

Trunkbow International Holdings Limited

today announced that its operating subsidiary in China has entered into a cooperation agreement with Shanghai Telecommunication Engineering Co., Ltd for the construction, management and operation of a cloud data center to be located in Shanghai, China. This data center will allow Trunkbow to extend its industry-leading MPS and MVAS services to the cloud, enabling small- and medium-sized businesses to utilize the Company's technology under Software application as Service and Platform application as Service models, further expanding the reach of its MPS solutions to a broader range of potential merchant customers. Under the agreement, Trunkbow will invest approximately RMB180 million (US$28 million) in the 8,262 square meter data center, with STE to provide design and construction services during the initial phase of development. The Company has applied for a government-backed bank loan to finance the construction. Once complete, STE will operate the facility and provide maintenance services through a partnership with China Telecom, with hosting fees to be shared between STE and Trunkbow. We expect to offer a comprehensive suite of Trunkbow-powered, cloud-based services that will provide a hosted MPS solution for both M-commerce and point of sale-based transactions through the data center. This solution will target small- and medium-sized businesses, and will be marketed as an attractive, low-cost option enabling merchants to accept mobile payments online and offline.