SmartPay Acquires Intrinsic Technology

SHANGHAI, China – SmartPay Jieyin Ltd (SmartPay), a leading provider of electronic payment services in China, today announced that it entered into a binding agreement to acquire DT Intrinsic Technology Ltd (Intrinsic) subject to customary closing conditions.

Intrinsic provides billing and service management software platforms to Chinese mobile carriers through its wholly-owned subsidiaries, Shanghai Intrinsic Technology Co. Ltd. and Shanghai Intrinsic Consulting Co. Ltd. In addition, Intrinsic is a rapidly growing provider of mobile value-added WAP and 2.5G services with top-3 ranking in Guangdong and other markets through its variable-interest value-added services entities. Intrinsic also possesses a well-regarded management team led by Greg Shen, who formerly served as the managing director of operations in China for APW Ltd., a leader in supporting original equipment manufacturers in the design, manufacture and integration of telecommunications, networking, data and semiconductor manufacturing equipment.

Intrinsic was one of the earliest innovators in China’s wireless industry and a driving force in the development of the value-added services market. Intrinsic’s core competence in China’s wireless market is widely acknowledged, particularly in the areas of service provisioning, system maintenance and implementation. Prior to this acquisition, Intrinsic had counted AsiaInfo, Acer Technology Ventures, Lunar Group and Fidelity Investments amongst its shareholders. Certain Intrinsic shareholders remain equity holders of SmartPay after this transaction.

Eric Rosenblum, Chairman of SmartPay, commented, “The move significantly strengthens SmartPay’s leadership position in the growing market for electronic payments in China. Intrinsic’s platform business helps strengthen our position with mobile operator merchants and gives us strong billing, systems integration and service management capabilities. In addition, Intrinsic’s rapidly growing wireless value-added services business allows us to showcase the applicability for SmartPay payment services to enhance 2.5G service offerings.”

The combined entity, headquartered in Shanghai, now has over 150 staff, and regional offices in Beijing, Guangdong, Jiangsu, Zhejiang, Anhui, Shandong, Liaoning, Hebei and Chongqing.

About SmartPay
SmartPay’s service allows users to pay electronically for products and services offered by a growing number of merchant partners. SmartPay will be launching additional direct-to-consumer (D2C) and peer-to-peer (P2P) payment services in the coming quarters. SmartPay works with over 15 Chinese banks and numerous merchants including 10 of China’s largest mobile telecom operators and is China’s clear leader in processing payments originating from mobile phone subscribers.

This announcement contains statements of a forward-looking nature. You can identify these forward- looking statements by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. SmartPay does not undertake any obligation to update this forward-looking information, except as required under applicable law.