Hurray! to Acquire a Wireless Value-added Service Provider

24 September 2005

Hurray! Holding Co., Ltd. (Nasdaq: HRAY - News), a provider of advanced wireless value-added services and mobile telecommunication network software in China, announced today the signing of definitive agreements to acquire a wireless value-added services provider in China for a total consideration of US$0.7 million.

While not yet generating significant revenues, the company acquired provides short message services (SMS) to China Mobile users nationwide. The transaction is expected to be closed by the end of September 2005, subject to certain consents, authorizations and other customary closing conditions.

"Following two acquisitions of an IVR company and an MMS company earlier this year," Hurray!'s Chairman and Chief Executive Officer QD Wang commented, "this new acquisition will help us further enhance and expand our portfolio of wireless value added services. We believe that the acquisition should position us to more effectively grow our SMS business over China Mobile platform and create further leverage for cross-selling activities among all our wireless value added services."

About Hurray! Holding Co., Ltd.

Hurray! provides wireless value-added services such as ringtones, picture downloads, community and entertainment services to mobile users in China. The company is one of the market leaders in providing these services using wireless application protocol, commonly referred to as WAP, in China. WAP services are offered through the advHurray!anced 2.5G mobile networks, the most advanced broadly available mobile networks deployed in China. Hurray! also offers these services through 2G mobile networks.

In addition, Hurray! designs, develops, sells and supports a service provisioning and management software that is used by China Unicom, one of the two principal mobile operators in China, to support its 2.5G services platform.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes" 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, including risks related to: the possibility that the proposed acquisition may not occur and the challenge of integrating the companies to be acquired into Hurray!'s operations; the risk that this or any future acquisition will not create the operational and financial results that Hurray!'s management and board of directors expects, including in particular the possibility that this acquisition may not expand Hurray!'s market share in the SMS sectors and maximize effectiveness of its cross-selling marketing activities; continued competitive pressures in China's wireless value-added services market; the state of Hurray!'s relationship with China's mobile operators; and changes in the operating environment, the character and effects of which are difficult to predict.; and other risks outlined in Hurray!'s filings with the Securities and Exchange Commission, including its registration statement on Form F-1, as amended. Hurray! does not undertake any obligation to update this forward- looking information, except as required under applicable law.

Source: PR Newswire