Our Ownership Structure

Chinese law imposes specific restrictions on foreign investment in certain industries such as value-added telecommunications and Internet services. Similar to the other U.S.-listed China-based companies in our sector, the corporate structure of Hurray! reflects these restrictions.

We conduct our business in China through our wholly owned subsidiary, Hurray! Times. In turn, we have contractual relationships that give us effective control over several affiliated Chinese companies which hold the requisite licenses to offer wireless value-added services and operate Internet websites and provide such services to end-customers in China.

In June 2004, Hurray! Solutions, one of our affiliated Chinese entities, acquired Beijing Enterprise, which offers 2.5G services through China Mobile. We also control Beijing Enterprise through contractual relationships.