IDGVC Partners and Infiniti Capital Agree to Make US$20 Million Investment in TechFaith's One Net Entertainment Limited

BEIJING, May 18 (MARKET WIRE) --
China Techfaith Wireless Communication Technology Limited (NASDAQ: CNTF)
("TechFaith") today announced that a leading venture capital firm, IDGVC
Partners (www.idgvc.com), and Hong Kong-based Infiniti Capital Limited
have agreed to make a total of US$20 million investment in One Net
Entertainment Limited through its parent company, Leo Technology Limited,
a wholly-owned subsidiary of TechFaith. One Net Entertainment focuses on
the development and operation of wireless gaming applications. IDGVC's
US$10 million investment will be in the form of a convertible note
convertible into ordinary shares of Leo Technology or TechFaith at the
option of the note holder, and Infiniti Capital's US$10 million investment
will be in the form of common equity. The transaction is subject to
certain closing conditions.

Defu Dong, Chairman and CEO of TechFaith, stated, "We are pleased with the
impressive progress of our gaming business and welcome the investment from
IDG and Infiniti. One Net Entertainment has quickly established itself as
a competitor to be watched in the wireless mobile phone gaming and PC
online gaming markets. With this US$20 million investment, we expect to be
able to execute on our growth strategy and pursue game development and
publishing opportunities to even further accelerate One Net
Entertainment's growth prospects."

About One Net Entertainment Limited

Based in Beijing, One Net Entertainment is a wholly-owned subsidiary of
China Techfaith Wireless Communication Technology Limited ("TechFaith")
(NASDAQ: CNTF). One Net Entertainment is targeting both the mobile and
online PC gaming markets through its websites www.798uu.com and
www.798game.com, respectively. One Net Entertainment is leveraging an
integrated model of using a combination of self-developed as well as
co-developed and licensed content, as such strategy is designed to help it
launch games faster and more efficiently. Three massive multiplayer online
role-playing games (MMORPGs) are planned to launch in 2009 for online PC
users on www.798game.com. Sixteen titles are planned to launch in June for
mobile gamers on the company's Chinese mobile games website www.798uu.com.

About IDGVC Partners ( www.idgvc.com )

IDGVC Partners was founded in 1992 with offices in Beijing, Shanghai,
Guangzhou, Boston, and Silicon Valley. As one of the earliest American
venture capital firms to enter the Chinese market, IDGVC Partners has
established a leading role in the industry with an aggregate of US$2
billion capital under management. IDGVC Partners invests in
early-to-growth-stage companies with focus on hi-tech related sectors such
as the Internet, telecommunications, wireless communications, digital
media, IC, and life science. It has an investment portfolio of over 100
start-up companies, including Ctrip, Sohu, Baidu, China Finance Online,
Tencent, soufun, HomeInns, NetDragon, Allyes, and Kingdee, 30 of which
have completed public offerings or successful mergers.

About Infiniti

Infiniti Capital Limited (ICL) is a venture capital firm based in Hong
Kong. ICL was founded by two well experienced investment professionals who
are both Chartered Financial Analysts. They bring with them a wealth of
over 19 years experience each in the HK/China financial industry. Infiniti
Capital mainly participates in China-related investment opportunities in
different markets and their investment philosophy is to benefit from fast
growing companies over the long run. Hence, their key focuses are the
growth potential of the business segment as well as the management
capabilities of their invested companies.

About TechFaith

TechFaith (NASDAQ: CNTF) is an original developed product provider focused
on research and development of cell phone solutions. Based in China,
TechFaith employs approximately 700 professionals, of whom approximately
90% are engineers. TechFaith engages in the development and production of
middle to high end handsets and tailor made handsets. TechFaith's original
developed products include: (1) multimedia phones and dual mode dual card
handsets of multiple wireless technology combination such as GSM/GSM,
GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based
smartphones and Pocket PC phones; and (3) handsets with interactive online
gaming and professional game terminals with phone functionality.

With the capability of developing MMI/UI software on 2G/2.5G(GSM/GPRS,
CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication
technologies, TechFaith is able to provide MMI/UI software packages that
fulfill the specifications of handset brand owners and carriers in the
global market. For more information, please visit
www.techfaithwireless.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,
"future," "intends," "plans," "believes," "estimates," "confident,"
"outlook" and similar statements. Among other things, the business outlook
and strategic and operational plans of TechFaith contain forward-looking
statements. TechFaith may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission on Forms 20-F and 6-K, etc., in its annual report to
shareholders, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about
TechFaith's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A
number of important factors could cause actual results to differ
materially from those contained in any forward-looking statement.
Potential risks and uncertainties include, but are not limited to, those
risks outlined in TechFaith's filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F. TechFaith
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.

Contacts:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: + 86-10-5822-8390
Email: ir@techfaith.cn

In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
Email: cntf@globalirpartners.com

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