TechFaith A Handset Original Developed Product (ODP) Provider Mar - PowerPoint PPT Presentation

TechFaith A Handset Original Developed Product (ODP) Provider Mar 2008 (Nasdaq: CNTF) Page 1 HK000KRB

Disclaimer This presentation 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'' and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as TechFaith's strategic and operational plans, 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, TechFaith's limited operating history, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, TechFaith's ability to retain existing or attract additional international customers, TechFaith's earnings or margin declines, failure of competing against new and existing competitors, and other risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1, as amended. TechFaith does not undertake any obligation to update any forward- looking statement, except as required under applicable law. (Nasdaq: CNTF) Page 2 HK000KRB

Contents � Industry Evolution � Unique ODP Provider � Product Development Status � Customer Base � Appendix (Nasdaq: CNTF) Page 3 HK000KRB

Global Handset Players Get More Diversified 1980 － 1995 2008 － Future 1998 － 2000 2000 － 2005 2006 － 2007 1995 － 1998 2008 - Future Top Five Brands Japanese Brands European Brands Chinese Brands Niche Brands Carrier Brands Local Brands Premium Brands (Nasdaq: CNTF) Page 4 HK000KRB

Wireless Standards and OS Get More Complicated HSUPA 3.5G/3.9G HSDPA WiMAX WiFi 3G TD-SCDMA WCDMA CDMA 2000/EVDO GSM/GPRS/EDGE 2G/2.5G to 2.75G CDMA1X GSM/GPRS Mid-90s 2000 2002 2005 2007 2010 (Nasdaq: CNTF) Page 5 HK000KRB

Fast-Growth Opportunities for TechFaith � Small players are not capable of providing original developed products; � Big players can not cover the Design of a full spectrum of technologies from 2G to 3.5G; � Carriers are promoting their own services with rich software applications; � Dual-mode handsets are in high demand by carriers running two network systems or by international roamers. (Nasdaq: CNTF) Page 6 HK000KRB

Contents � Industry Evolution � Unique ODP Provider � Product Development Status � Customer Base � Appendix (Nasdaq: CNTF) Page 7 HK000KRB

Total Handset Software & Design Solutions � TechFaith owns customer relationship � EMS is available for production if brand owner Application outsources Software manufacturing MMI: Customer MMI: Drivers on Specific Frame Brand Common Different Chipset Features for U I work Owner OS Different API Features Operators EMS Hardware Design Production Line Industrial Design/Mechanical Design (Nasdaq: CNTF) Page 8 HK000KRB

PCBA Common Practice: focusing on hardware design by using single chipset solution Single Chipset Solution Application Software MMI: Drivers Specific MMI: Frame Features for on UI Chipset Common Work Different Different Features Operators API Customer OS EMS Brand Production Owner Line Hardware Design Industrial Design/Mechanical Design � No product differentiation � Low entry barrier (low margin) � Single chipset solution providers only offer GSM/GPRS/EDGE (Nasdaq: CNTF) Page 9 HK000KRB

Cutting-Edge Technology Alliances Enabler of CDMA technology Strategic investor Collaborative founding “TechSoft” Strategic partner to develop Smartphone technology (Nasdaq: CNTF) Page 10 HK000KRB

Company Profile – NASDAQ: CNTF Original Dev. Product Company Founded ODP & Content Independent Design (ODP) 2002 Provider House Provider 2002-2005 2008 2006-2007 � Application Software Co. - � Founded in July ’02 � NASDAQ IPO in May ’05 � Interactive Game Jointly Invested by Business Unit � First 3G WCDMA/UMTS Qualcomm in May ’06 Founded in Q1’08 Handset in Oct ’05 � First Window’s Smartphone in Sep ’06 � First 3.5G HSDPA Smartphone in Apr ’07 � Volume based business � Project based business � Higher ASP from games � Revenue mainly from NRE � Volume based business and other contents � Share the volume business via Royalty � Extra revenue from game income service, game terminals and UMPC (Nasdaq: CNTF) Page 11 HK000KRB

Contents � Industry Evolution � Unique ODP Provider � Product Development Status � Customer Base � Appendix (Nasdaq: CNTF) Page 12 HK000KRB

TechFaith’s Product Position - Focusing on Mid to High Tier 450 Unit: US$ Smartphone & PPC Phone Gross Margin > 25% High Tier Feature Phone 180 170 Gross Margin > 20% 100 90 58 Middle Low Tier 45 50 35 Gross Margin > 10% 35 Low Tier 20 Cost Wholesale Price (Nasdaq: CNTF) Page 13 HK000KRB

TechFaith’s Product Position - Focusing on Mid to High Tier 450 Unit: US$ HSDPA Gross Margin 20%-40 % WCDMA 170 GSM Gross Margin High Tier Gross Margin 180 15%-30% 10%-30% CDMA1X 100 90 Gross Margin Middle 58 10%-40% 50 45 35 35 Low Tier 20 Cost Wholesale Price (Nasdaq: CNTF) Page 14 HK000KRB

Product Portfolio with Advanced Technology Feature Phone MID Windows Google Multimedia Game (Windows XP) Mobile General GSM CDMA WCDMA HSDPA TD-SCDMA Unique GSM/CDMA GSM/GSM WCDMA/GSM WCDMA/CDMA GSM/TD-SCDMA Patented (Nasdaq: CNTF) Page 15 HK000KRB

Technology Combinations in High Demand PPC GSM CDMA GSM GSM Phones Gallic Cynthia 850 GSM WCDMA Twins Feature Phones GSM CDMA CDMA WCDMA GSM TD-SCDMA T7620 Twins Yin Tai GSM GSM GSM GSM GSM GSM T7620+ T7630 Digo S26 Q1’ 2008 Q4’ 2007 Launched (Nasdaq: CNTF) Page 16 HK000KRB

HSDPA Data/Voice Card- Pike Band: HSDPA2100/GPRS10/GSM900/DCS1800/PCS1900MHz LCD: 0.8’’ OLED Entertainments: Modem /MP3 AAC /AAC+ Size: 98*36*16mm/ 56g Patent: Industry Design authorized in China, Eastern Europe and Japan (Nasdaq: CNTF) Page 17 HK000KRB

Platform: Marvell Bulverde 270 ( 520 MHz ) + Qualcomm 6280 LCD: 3.0” WVGA TFT Touch panel Patent: Window Based Touch Screen Split Slider Qwerty GPS HSDPA PPC - Bono (Nasdaq: CNTF) Page 18 HK000KRB

HSDPA PPC - Fox H Platform: Marvell Bulverde 270 ( 520 MHz ) + Qualcomm 6280 LCD: 2.5” QVGA TFT, touch panel Patent: 3D UI Interface (Nasdaq: CNTF) Page 19 HK000KRB

Contents � Industry Evolution � Unique ODP Provider � Product Development Status � Customer Base � Appendix (Nasdaq: CNTF) Page 20 HK000KRB

Worldwide Market Coverage Russia Canada Europe Ukraine Turkey South Korea United States China Morocco Japan Egypt Algeria Libya Saudi Arabia India Taiwan United Arab Emirates Thailand Yemen Vietnam Nigeria Malaysia Kenya Indonesia Brazil 21 HK000KRB HK000J5S

TechFaith’s Worldwide Customers & Prospects Europe Russia South East Asia Latin America China Africa North America Middle East Africa India (Nasdaq: CNTF) Page 22 HK000KRB

Contents � Industry Evolution � Unique ODP Provider � Product Development Status � Customer Base � Appendix (Nasdaq: CNTF) Page 23 HK000KRB

TD-SCDMA Update TD-SCDMA Update HK000KRB

TD-SCDMA Product Road Map Linux-based & One-chip Engineering Mass Low-cost Sample Production HSUPA (UMTS) Working Sample for Mass HSDPA2.8M MII Field Testing Production /GSM + AR +AH+EDGE Engineering Sample Mass No.1 CNC Qingdao CTA of Feature Phone Production Field Testing & Data Card TD/GSM AR + AH + EDGE Demonstration at PT/EXPO COMM CHINA 2007 Q1/08 Q3/08 2009 Q3/07 Q4/07 (Nasdaq: CNTF) Page 25 HK000KRB

Development of TechFaith’s TD-SCDMA Projects Two models of feature phone and one model of data card were shown to � the public in our customers’ name at PT/EXPO COMM CHINA 2007 from 23rd-27th Oct 2007. Data card won CMCC bidding recently in one of our customers name. � Two models of feature phone are joining the CMCC bidding. � TechFaith has secured TD-SCDMA contracts for both data card and feature phone from customers home and abroad, first shipment is expected in Q2 2008. (Nasdaq: CNTF) Page 26 HK000KRB

Key Component Suppliers Key Component Suppliers HK000KRB