Yangtze Telecom Corp. has announced that its wholly owned Chinese subsidiary has been notified by China Mobile Communications Corporation (China Mobile) that effective immediately, it is authorized to offer its SMS (Short Messaging) services nationwide to all of China Mobile's subscribers.

China Mobile is China's largest mobile network carrier with a rapidly growing subscriber base that currently numbers approximately 180 million customers.

Yangtze Telecom already holds a similar national services agreement with China United Telecommunications Corporation (China Unicom), the other nationwide mobile network carrier in China. With China Unicom having approximately 90 million subscribers, the Company is now able to offer its SMS services to approximately 270 million mobile phone subscribers and all future subscribers of China Mobile and China Unicom in China. According to official figures recently released by China's Ministry of Information Industry, China is experiencing explosive growth in mobile phone usage as the two network carriers added 62.7 million mobile phone subscribers in 2003, a 30% increase over 2002.