NQ Mobile Terminates Proposed Divestment of Beijing Tianya

NQ Mobile Inc.

today announced that the Company's board has approved to terminate the previously announced plan to divest 100% of the equity interest in Beijing Tianya Co., Ltd. ("Beijing Tianya"), a wholly owned subsidiary of Beijing NQ Technology Co., Ltd., NQ Mobile's consolidated affiliated entity, to Tack Fiori International Group Limited ("Tack Fiori"), a Cayman Islands company listed in Hong Kong (such transaction, the "Proposed Divestment"). Beijing Tianya currently operates NQ Mobile's mobile health applications related business. The Proposed Divestment was terminated upon mutual agreement between NQ Mobile and Tack Fiori. In the course of reviewing the draft announcement of the Proposed Divestment, The Stock Exchange of Honk Kong Limited took the view that the Proposed Divestment would constitute a reverse takeover and would be treated as if it were a new listing application. In view of the tremendous cost and time expected to be incurred for complying with such expanded listing requirements, both NQ Mobile and Tack Fiori considered that it is beneficial to terminate the Proposed Divestment and relevant agreements. "While the termination of the Proposed Divestment is