TechnoDex’s online game distributed by China Telecom

Selangor, Malaysia, 21 April 2009 – TechnoDex Berhad announced that China Telecom Corporation Limited will distribute the second version of its online game, “Childhood 2”.

This follows the signing of a distribution contract between China Telecom and HITONE Digital Interactive Technology Limited (“HITONE”), TechnoDex’s exclusive marketer of online games.

According to the terms of the contract, China Telecom will pay HITONE RMB3.5 million (approximately RM1.83 million) for the distribution rights of Childhood 2 as well as percentage-based royalty as per airtime volume sales of Childhood 2. As the exclusive marketer, HITONE will channel all income from the sales of Childhood 2 to Shenzhen OYou8 Digital Interactive Co. Ltd, TechnoDex’s 33%-owned online games developer.

Childhood 2 will be distributed on China Telecom’s widely used my-eHome, an online information portal (www.wodeejia.com) as part of its internet application package.

Nigel Lee said: “The distribution deal serves as not only a strong earnings booster but also a testament of the quality of our games; Childhood 2 will be distributed alongside industry leading games on China Telecom’s popular internet portal.”

China Telecom, a state-owned company, is the largest telecommunication service provider in China. Through its extensive network, China Telco provides a comprehensive range of communication products and services from fixed line and wireless connectivity to value-added content such as voice, video, date, image, multimedia and information.

TechnoDex’s online games unit - OYou8 first launched its maiden game Childhood on 1 December 2007, which is hosted on its own portal (www.52.tn.cn). The subsequent version Childhood 2 will be launched in May 2009.

Nigel Lee said: “The first version of Childhood is already well-accepted by the market; we currently have a community of 50,000 paying online games players. This track record, together with the strong marketing channel of China Telecom, would certainly place Childhood 2 in the path of success.”
“Not only that, the distribution of Childhood 2 on China Telecom’s portal is timely with the current market trend. Despite the economic crisis, online games sales not just withstood the economic slowdown but remarkably, has also recorded double-digit growth, backed by the trend of individuals turning to online games as a cheaper form of entertainment,” Nigel said.

According to a recent industry report, the sales volume of China’s online gaming industry in 2008 increased by 76.6% year-on-year to reach RMB18.38 billion (approximately USD2.69 billion), with more than 50 million online games users, despite the global financial crisis.