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KongZhong Sells eFriendsNet Social Networking Assets

KongZhong (KONG) has sold its shares in eFriendsNet Entertainment, one of the dozens of social networking and dating websites in China.

MEETIC, a European online dating services provider, has acquired 70% of EFN including KongZhong's stake in EFN.

KongZhong received cash consideration of US$1,740,804 and may receive additional payments contingent upon certain conditions.

KongZhong made a minority investment of $500,000 in EFN in the first quarter of 2005. The investment gain from the sale of EFN shares is approximately $1.2 million and will be reflected in the first quarter 2006 financial statements.

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