UPDATE: Sky-Mobi Announces Partnership with China Unicom

Sky-mobi Limited ("Sky-mobi" or the "Company") MOBI, a leading mobile application store in China, today announced that the Company, through its controlling subsidiary Mopin Technology Co., Ltd., has recently entered into a strategic partnership with the Wo Store of China Unicom CHU, the official application store of China's second largest mobile operator. Under the terms of the agreement, Sky-mobi was designated as an official business partner of China Unicom to provide customized and tailor-made software services at China Unicom's network of physical stores nation-wide. This strategic partnership enables China Unicom to significantly improve the customer experience of purchasing a smartphone over the counter through offering quality customized software service from sales staff coached by Sky-mobi, marking another significant step in Sky-mobi's overall cooperation with major telecom operators in China. Sky-mobi's partnership with China Unicom initially covers its physical stores in the lucrative smartphone markets of Zhejiang, Guangxi and Shandong provinces, and will be expanded to cover Hubei, Heilongjiang, Hunan, Shanghai and Guangdong throughout 2014. Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi stated, "We have been arduously working on this project since 2010 when we found through customer feedback that customers visiting the operator's physical stores expected more than just assistance with choosing and purchasing a new phone. Rather our insights suggested they expect much more on the in-store service front, such as receiving advice on how to use smartphone applications effectively and smartly. Recognizing this consumer characteristic, we view our partnership with China Unicom as a great opportunity to better serve customers and assist telecom operators in promoting their monthly data-packages. The momentum of this strategy was evident last September, when we successfully deployed our customized and tailor-made software services solution for Zhejiang Mobile throughout most of their physical stores in Zhejiang province, allowing the carrier to benefit both from improved customer satisfaction and significantly-increased monthly data traffic consumption. "Building on this previous experience, our partnership with China Unicom will also improve attraction and servicing of smartphone users, through providing advice and assistance with smartphone apps and services at China Unicom's physical stores. Sky-mobi will benefit through leveraging, at no additional cost, China Unicom's extensive physical store network, which has become an increasingly critical offline channel to immediately access new smartphone users. With this enhanced cooperation with telecom operators as well as our on-going smartphone initiatives, we're very confident in our overall capabilities of expanding our user base and monetization opportunities over the long run."