Sky-mobi Announces Sale of 37.9 Percent Stake in Fangcun

Sky-mobi Limited ("Sky-mobi" or the "Company") MOBI, a leading mobile application platform in China, today announced the sale of its 37.9% equity interest in Shanghai Fangcun Information Technology Co., Ltd. ("Fangcun"), a leading China-based mobile game developer, to Guangdong Alpha Animation and Culture Co., Ltd. (SZ:002292), a company listed on the Shenzhen Stock Exchange. The Company realized a capital gain of RMB56.4 million1 from this transaction. Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi, stated, "We are extremely pleased with the growth of Fangcun's capabilities for mobile games in China. MonsterxMonster, a light mobile game, which we closely collaborated on with the Fangcun team from concept design to product distribution, has become a recent hit in China and overseas. The success of Fangcun as well as the increasing recognition of Sky-mobi's other strategic investments demonstrate our strong capabilities in discovering and cultivating game developers. These strengths are undergirded by our ability to leverage our deep understanding of Chinese light mobile game players' preferences and identify strategic investments that possess tremendous potential. One of our strategic objectives in solidifying Sky-mobi's leadership in the mobile game publishing market is to continue our dedication in collaborating with and investing in start-up mobile game developers with innovative and unique solutions. We endeavor to consistently distribute the highest-quality and most popular mobile games and applications through our well established distribution networks. Motivating us in this endeavor is our strong commitment to further supporting growth for every participant in our eco-system. We believe that the Fangcun deal is just the beginning of this commitment to strengthen our pipeline of talent. Going forward, we may further leverage our broad platform and explore opportunities of investing in such talented emerging gaming developers, adding an additional avenue of growth in near future."