Funtalk China Holdings Limited Announces Extraordinary General Meeting of Shareholders

Funtalk China Holdings Limited FTLK announced today that it has called an extraordinary general meeting of shareholders, to be held at 9:00 am (Beijing time) on Monday, August 22, 2011, at the Company's offices at 21/F, Block D, The Place Tower, No. 9 Guanghua Road, Chaoyang District, Beijing 100020, the People's Republic of China, to consider and vote on the proposal to adopt the previously announced agreement and plan of merger, dated as of May 31, 2011, by and among Fortress Group Limited, a newly-formed entity jointly owned by ARCH Digital Holdings Ltd., Capital Ally Investments Limited, GM Investment Company Limited, Sinowill Holdings Limited, which is controlled by the chairman of the board of directors of the Company, Mr. Kuo Zhang, Huge Harvest Enterprises Limited, which is wholly owned and controlled by the chief executive officer of the Company, Mr. Dongping Fei, Kingstate Group Limited, which is wholly owned and controlled by Mr. Hengyang Zhou, executive president of Beijing Funtalk Century Technology Group Company Limited, an indirect wholly owned subsidiary of the Company, and Trend Focus Limited, which is wholly owned and controlled by Mr. Francis Kwok Cheong Wan, senior vice president of corporate investor relations of the Company, Fortress Merger Sub Limited, a wholly owned subsidiary of Parent and the Company, pursuant to which Merger Sub will be merged with and into the Company with the Company surviving the merger as a wholly owned subsidiary of Parent. If completed, the proposed merger would result in the Company becoming a privately held company and its ordinary shares would no longer be listed on the NASDAQ Global Market. The Company's board of directors, acting upon the unanimous recommendation of the independent committee formed by the board of directors, approved the Merger Agreement and resolved to recommend that the Company's shareholders vote to adopt the Merger Agreement and approve the transactions contemplated by the Merger Agreement, including the merger.