Funtalk China Holdings Limited Enters Into Definitive Agreement With Fortress Group Limited and Fortress Merger Sub Limited for Going Private Transaction

Funtalk China Holdings Limited FTLK announced today that it has entered into a definitive agreement with Fortress Group Limited and Fortress Merger Sub Limited ("Merger Sub") pursuant to which Parent will acquire Funtalk for US$7.20 per share (the "Transaction"). The Transaction values Funtalk's equity at approximately US$443 million on a fully diluted basis, and represents a 35.9% premium over the Company's 30 trading day average price as quoted by NASDAQ on March 24, 2011, the last trading day prior to the Company's announcement on March 25, 2011 that it had received a "going private" proposal.