SMS Porn Ban Not Affecting Chinese Web Portal

hongkong.com Corp. says that its Mobile SMS unit, Newpalm is maintaining its continuous strong relationship with China Mobile and its SMS business is not affected in any way by the recent move of China Mobile in ceasing to collect payment for non-mobile phone related services through SMS platform.

In response to the Internet Information Service Regulation promulgated by the Ministry of Information Industry of the PRC which aims to prevent or prohibit delivery of pornographic content to mobile users through SMS, China Mobile required Internet content providers to eliminate and cease forthwith pornographic content delivery to mobile phone users through SMS platform; and effective from August 1, 2003, China Mobile has stopped collecting payment for any non-mobile phone related services.

Newpalm, a leading SMS service provider in China with a well-established distribution platform through local network operators in 26 provinces, however, are not affected by this move.

"This move by China Mobile will have no impact on us as our SMS and portal business do not have any pornographic content," said Rudy Chan, Chief Executive Officer of hongkong.com Corporation. "Our team has been making our best efforts to ensure the content offered by Newpalm and the www.china.com portal are clean and healthy which is consistent with the overall group's culture. Mobile SMS revenue generated by Newpalm SMS business in China was US$5.1 million in Q2 2003, and we believe our SMS business is on the right track although it's still in its early stages."

Zhou Shun Ao, Vice Chairman and representative from Xinhua News Agency on the Board of hongkong.com Corporation, commented, "It is important for companies doing business in China to follow the regulations and rules of the country. hongkong.com Corporation is committed to complying with the laws and regulations of the countries where it operates, including China."

Major flagship SMS products offered by Newpalm include X-City, Fortune Telling and Jokes. Since the acquisition of Newpalm, synergies have been developed within the group by leveraging Newpalm's SMS technology and the www.china.com portal's online capabilities. Jointly developed services and products include China News SMS, Business Elite, X-City 2 and Military SMS which is expected to be launched in Q3 this year."

Posted to the site on 13th August 2003