TCL Communication Evolves its European Business Activities

TCL Communication Evolves its European Business Activities

May 17th,2005

(May 2005 - Hong Kong) - TCL Communication Technology Holdings Limited ("TCL Communication" or the "Company")(HKSE stock code: 2618) announced today its plan to further evolve the business platform of TCL & Alcatel Mobile Phones Limited ("T&A HK"), the joint venture formed by the Company and Alcatel in August 2004.

Under the business plan, it is envisaged that TCL and Alcatel Mobile Phones SAS ("T&A SAS"), a wholly owned French subsidiary of T&A HK, will be transformed into a business development, sales and marketing and product development support centre focused on the European market.

Accordingly, adjustments to the corporate structure of T&A HK are planned to better reflect the outlook on operations. The Company will acquire from Alcatel the 45% stake in T&A HK through a share swap. The number of shares to be issued pursuant to the share swap will be approximately 5% of the existing issued shares of the Company. After the acquisition, T&A HK will become a wholly owned subsidiary of TCL Communication.

The plan is subject to the approval of TCL Communication shareholders.

Mr. Li Dong Sheng, Chairman of TCL Communication, said, "This is a critical step forward and will help lay foundations for TCL Communication to grow and prosper in the future."

-End-

About TCL Communication Technology Holdings Limited

TCL Communication is a leading player in the PRC mobile handset industry. The Group is engaged in the design, manufacturing and marketing of a wide range of mobile handsets with various levels of value-added features. Aiming at further extending its business to the global market, the Group formed a joint venture with Alcatel, T&A, which has commenced operation in September 2004. Headquartered in the PRC, the Group operates highly efficient manufacturing plants in Huizhou and Inner Mongolia. For more information, please visit the Group s website: www.tclcom.com.

For further information, please contact:
iPR ASIA LTD
Harriet Lau / Karen Hung / Ellen Chan / Sharis Siu
Tel: (852) 3170 6750 / 3170 6752 /2136 8059 / 3170 6753
Fax: (852) 2136 6068 / 2136 6951
E-mail: harrietlau@iprasia.com.hk / karenhung@iprasia.com.hk/
ellenchan@iprasia.com.hk/ sharissiu@iprasia.com.hk
Website: www.iprasia.com.hk