Hurray! to Spin Off Software and System Integration Business

BEIJING, Oct 8 /Xinhua-PRNewswire/ -- Hurray! Holding Co., Ltd. , a
leader in artist development, music production, wireless music
distribution, and other wireless value-added services in China, today
announced the signing of definitive agreements to transfer its software
and system integration business unit, Hurray! Times Communication
(Beijing) Co., Ltd. ("Hurray! Times"), for US$ 4.8 million in cash to
one of its primary institutional share holders, TWM Holding Co., Ltd.,
a wholly owned subsidiary of Taiwan Mobile which is a leading telecom
service provider in Taiwan.

The total consideration is subject to adjustments based on the
financial performance of Hurray! Times' business in certain periods
following the closing of the acquisition. The transaction is expected
to close before March 31, 2008, subject to required China regulatory
approvals and other customary closing conditions.

Commenting on this announcement, QD Wang, Chairman and Chief
Executive Officer of Hurray!, said, " We are extremely pleased to
announce this partnership with Taiwan Mobile. This deal will sharpen
our focus on our transformation strategy to become a leading
entertainment content production and distribution house in China."

About Hurray! Holding Co., Ltd.

Hurray! is a leader in artist development, music production and
offline distribution in China through its record labels Huayi Brothers
Music, Freeland Music, New Run Entertainment, and Secular Bird.

Hurray! is also a leading online distributor of music and
music-related products such as ringtones, ringbacktones, and truetones
to mobile users in China through the full range of wireless value-added
services platforms over mobile networks and through the internet.

The company also provides a wide range of other wireless
value-added services to mobile users in China, including games,
pictures and animation, community, and other media and entertainment
services. The company has further expanded its reach through a new
venture with Beijing TV Media, the new media channel of Beijing TV, to
provide mobile interactive services for all Beijing TV programs.

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: continued
competitive pressures in China's wireless value-added services market;
changes in technology and consumer demand in this market; the risk that
Hurray! may not be able to control its expenses in future periods;
Hurray!'s ability to succeed in the music development, production and
distribution business, with which it has only limited experience;
changes in the policies of the mobile operators in China or the laws
governing wireless value-added services; the state of Hurray!'s
relationships with China's mobile operators and the risk that Hurray!
may be subject to further sanctions and penalties from them in future
periods; 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.