BEIJING, Oct. 27 /Xinhua-PRNewswire/ -- KongZhong Corporation (NASDAQ: KONG), a leading wireless value-added services, wireless media and wireless game company in China, today announced that its Board of Directors has authorized the Company to repurchase up to US$10 million worth of its own American Depositary Shares (ADSs). The repurchase program calls for the ADSs to be purchased in the open market from time to time depending upon market conditions, the market price of Company's ADSs and the management's assessment of the Company's liquidity and cash flow needs. The repurchase program is designed to increase shareholder value and reduce the dilutive effect of the Company's equity incentive plans. The Company expects to finance the repurchases from existing cash reserves. Leilei Wang, the Chief Executive Officer and Chairman of the Board of the Company, said, "The Board's decision to implement the share repurchase program reflects its strong belief in the strength of the Company's businesses. The Board also believes that the Company's shares have been unfairly punished in recent market turmoil. With over $130 million in cash and cash equivalents, we have maintained a strong balance sheet and feel confident that this repurchase program will enhance shareholder value." About KongZhong KongZhong Corporation is a leading wireless value-added services, wireless media and wireless game company in China. The Company delivers wireless value- added services (WVAS) to consumers in China through multiple technology platforms including wireless application protocol (WAP), multimedia messaging service (MMS), JAVATM, short messaging service (SMS), interactive voice response (IVR), and color ring-back tone (CRBT). The Company also operates three wireless Internet sites, Kong.net, Ko.cn and cn.NBA.com, which enable users to access media, entertainment and community content directly from their mobile phones. The Company also designs and operates wireless games, including mobile on-line games. Safe Harbor Statement This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding trends in the wireless value-added services, wireless Internet and mobile advertising industries and our future results of operations, financial condition and business prospects. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends and our results may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, continued competitive pressure in China's wireless value-added services, wireless Internet and mobile advertising industries and the effect of such pressure on prices; unpredictable changes in technology, consumer demand and usage preferences in this market; the state of and any change in our relationship with China's telecommunications operators, which may be affected by the on-going restructuring of the PRC telecommunications industry as announced by the Ministry of Industry and Information Technology in May 2008; our dependence on the billing systems of telecommunications operators for our performance; the outcome of our investment of operating income generated from the wireless value-added services segment into the development of our wireless Internet segment; changes in the regulations or policies of the Ministry of Industry and Information Technology and other relevant government authorities; and changes in political, economic, legal and social conditions in China, including the Chinese government's policies with respect to economic growth, foreign exchange, foreign investment and entry by foreign companies into China's telecommunications market. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release. For further information, please contact: Investor Contact: Sam Sun Chief Financial Officer Tel: +86-10-8857-6000 Fax: +86-10-8857-5891 Email: Media Contact: Xiaohu Wang Manager Tel: +86-10-8857-6000 Fax: +86-10-8857-5900 Email: DATASOURCE: KongZhong Corporation CONTACT: Investor Contact - Sam Sun, Chief Financial Officer, KongZhong Corporation, +86-10-8857-6000, Fax, +86-10-8857-5891, , Media Contact - Xiaohu Wang, Manager, KongZhong Corporation, +86-10-8857-6000, Fax +86-10-8857-5900, Web site: http://www.kongzhong.com/

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