Qiao Xing Universal Telephone, Inc. announced today that it will enter the core technology field of mobile communications by jointly developing GSM terminal core chips with an overseas mobile communications terminal technology R&D company.

Qiao Xing Universal, relying on the influence of Qiao Xing Group, and the growing reputation of it's subsidiary, CEC Telecom Ltd. (CECT), has attracted a number of high-tech companies with strong R&D capabilities, to cooperate, aiming to increase the company's chances of success in one of the world's most competitive mobile markets, in terms of the number of mobile manufacturers and production costs.

Qiao Xing Mobile Communication Co., Ltd., subsidiary of Qiao Xing Universal, signed a letter of intent with an overseas mobile communications R&D and manufacturing enterprise on March 30, 2004, with the aim to develop quality, low-cost GSM terminal core chips to satisfy current demands in the China market. This overseas enterprise already has in place the required technology and R&D capacities to produce such low-cost GSM terminal core chips.