Hurray! News

Hurray! Announces the Notice of Operators Sanctions

BEIJING, January 27, 2006/Xinhua-PRNewswire/ -- Hurray! Holding Co., Ltd. (Nasdaq: HRAY - News), a leader in advanced wireless value-added services, digital music production and distribution, and mobile telecommunication network software in the People’s Republic of China, today announced that Beijing Enterprise, one of Hurray operating companies providing WAP services through China Mobile, has been issued a sanction by China Mobile for improper promotion of one of its WAP services. As part of the sanction, China Mobile has downgraded all Beijing Enterprise WAP services to the bottom of menu and temporally suspended the approval of new service applications on all platforms (including Java, MMS, WAP, CRBT, IVR, and SMS) by Beijing Enterprise and joint promotions with Beijing Enterprise.

Separately, Hurray Solutions, one of Hurray operating companies providing SMS services through China Unicom has received an one time fine of approximately US$700,000 from China Unicom for delivering one of its SMS services not in accordance with the terms in its original service application approved by China Unicom.

Commenting on the incidents, QD Wang, Chairman and CEO of the Company, said, “We regret what happened and rectified the situation as soon as we could. We are working closely with China Mobile to minimize the impact this sanction may have on our business. We already provide wireless value added services on the Java, MMS, WAP, IVR, CRBT and SMS platforms and through multiple operating units including Beijing Enterprise on a national basis. We will focus our near-term efforts on promoting services through our other operating companies. We believe the China Mobile sanction, while creating short term pressure on Beijing Enterprise’s business, should not have lasting impact on our consolidated results beyond a quarter or two.”

“As to the China Unicom fine”, Mr. Wang continued, “we have resolved the SMS service application issue with China Unicom and have taken this opportunity to better understand China Unicom’s rules and procedures and to improve our operations process. The one time fine will be recorded in Q4, 2005 and we expect limited going forward impact on our results of operation.”

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 advanced 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! focuses on digital music production and distribution.

Hurray! also 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: Hurray!'s ability to maintain its leading position in the market for wireless value-added services in China, including its ability to anticipate or address changes in technologies and user preferences in an effective and timely manner; the risk that Hurray's profitability may be adversely affected in future periods for a variety of reasons, many of which may be beyond management's control; the state of Hurray!'s relationships with China's mobile operators; 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.

For more information, please contact:
Phoebe Meng
Investor Relations Manager
Tel: 8610-6518-8989 x 6806
yfmeng@hurray.com.cn

SOURCE: Hurray! Holding Co., Ltd.