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Hong Kong, 22 July 2007

SIM Technology Group Limited (“SIM Technology” or “the Group”; SEHK stock code: 2000), a leading mobile handset and wireless communication module solutions developer in China, has decided to proceed with the acquisition of Shanghai BaseCom Limited (“BaseCom”).

The acquisition will boost the Group’s R&D capabilities as BaseCom is an expert in R&D of WiFi/EDGE and WCDMA/HSDPA mobile communication terminal design. With boosted R&D capabilities, the Group will be able to meet the growing customer demand for new mobile communication terminal solutions on latest technology platforms and ride on new market trends to take its business forward.

Pursuant to the agreement, the consideration for the acquisition will be paid in cash. When the transaction is completed, SIM Technology will hold entire stake in BaseCom and own the rights to the technologies developed and resulting patents secured by BaseCom’s R&D team. The 150-strong R&D team will also become a part of SIM Technology’s R&D workforce.

Mr. Raymond Tsang, Chief Executive Officer of SIM Technology, said, “This acquisition is very important to the Group’s future development. Bringing with proven skills and experiences in various technologies such as 2.75G and 3G, WiFi/EDGE dual mode handsets and 3.5G HSDPA wireless application, BaseCom’s R&D team will enable the Group to enhance its capabilities in high-technology research and development. With their team and ours becoming one, we look forward to presenting our customers with new and more innovative solutions and opening the room for developing overseas market for the Group by better serving the needs of global wireless telecommunications operators.”