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ALONG Mobile Technologies Inc. Announces its Audited Annual Financial Results of Fiscal 2006

ALONG Mobile Technologies Inc. Announces its Audited Annual Financial Results of Fiscal 2006

XI'AN, China, March 1 /Xinhua-PRNewswire-FirstCall/ -- ALONG Mobile Technologies Inc. (OTC Pink Sheets: AGMB), a leading provider of wireless interactive entertainment products and services in China, today announced its audited annual financial results, ending December 31, 2006.

Total Revenue for fiscal 2006 was $6,427,893, an increase of 42.4% as compared with Net Revenue of $4,515,395 for fiscal 2005. Net Income for fiscal 2006 was $3,258,133, or $0.046 per share, an increase of 381.4% as compared with Net Income of $676,789 for fiscal 2005, or $0.012 per share.

"The large portion of the increase in revenues in fiscal 2006 was primarily due to the success of ALONG's efforts to expand to an additional 1200 downloading terminals in five provinces of northwest part of China from the third and fourth quarters of 2006," pointed Mr. Li Jianwei, the CEO of ALONG Mobile.

"Our gross profit for the year ending December 31, 2006 was $5,119,425, an increase of $2,083,610 as compared with $3,035,815 for the year ending December 31, 2005, with the corresponding overall gross profit margin increasing from 67.23% for fiscal year 2005 to 79.64% for fiscal year 2006. This was the best year we've ever seen for the overall operating performance! We ceased all the hardware products business in 2006, and our revenue is recognized from wireless application products. This along with expanding our downloading network significantly increased our revenue. Getting rid of the hardware business also significantly reduced our costs," said Mr. Wang Zhen, the CFO of ALONG Mobile.

"As part of the strategic planning process we completed in the third and fourth quarters, we have committed to improving returns and maximizing value from our continual expansion in the years ahead. Accordingly, we have decided with regard to our use of cash flow going forward, to continue to demonstrate the balanced approach to investing those funds that we showed in 2006 as well as we will still focus on improving our operations and financial performance," said Mr. Wang Zhen.

Financial Tables for reference: ALONG MOBILE TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS (Stated in US Dollars) As of December 31, 2006 2005 ASSETS Current Assets Cash and cash equivalents $6,561,239 $6,476,651 Accounts receivable (net of allowance for doubtful accounts of $382 in 2006, $Nil in 2005) 64,076 147,899 Inventories 32,421 54,505 Deposits paid 2,750,240 - Note receivable - 1,237,624 Other receivables 35,319 14,177 Total Current Assets 9,443,295 7,930,856 Property and equipment, net 4,186,065 1,866,865 Intangible assets, net 2,119,030 925,925 TOTAL ASSETS $15,748,390 $10,723,646 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $10,726 $10,377 Receipt in advance 31,903 - Deposits received 447,713 - Other payables and accrued liabilities 752,729 533,961 Value added tax payable 788,602 633,342 Other taxes payable 163,546 44,123 Accrued dividends payable - 309,406 TOTAL LIABILITIES 2,195,219 1,531,209 COMMITMENTS AND CONTINGENCIES - - STOCKHOLDERS' EQUITY Common stock 70,600 70,000 Additional paid-in capital 8,045,085 7,409,685 Retained earnings 3,949,214 1,188,360 Statutory and other reserves 1,045,174 547,895 Accumulated other comprehensive income (loss) 443,098 (23,503) TOTAL STOCKHOLDERS' EQUITY 13,553,171 9,192,437 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,748,390 $10,723,646 ALONG MOBILE TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Stated in US Dollars) Year ended December 31, 2006 2005 Revenues $6,427,893 $4,515,395 Cost of revenues (1,308,468) (1,479,580) Gross profit 5,119,425 3,035,815 Operating expenses Selling and distribution 837,404 453,673 General and administrative 900,655 534,530 Professional fees 107,080 130,000 Consultancy fees - 1,173,000 Depreciation 95,616 85,929 Total expenses 1,940,755 2,377,132 Income before the following items and taxes 3,178,670 658,683 Interest income 23,759 18,106 Other income 55,832 - Finance cost (128) - Income before income taxes 3,258,133 676,789 Income taxes - - Net income $3,258,133 $676,789 Earnings per share - basic and diluted $0.046 $0.012 Weighted average number of common stock outstanding 70,207,123 58,060,882 ALONG MOBILE TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in US Dollars) Year ended December 31, 2006 2005 Cash flows from operating activities Net income $3,258,133 $676,789 Adjustments to reconcile net income to net cash provided by operating activities: In-kind contribution - 30,927 Amortization on intangible assets 148,981 120,773 Depreciation on property and equipment 217,189 85,929 Issuance of common stock for services - 1,173,000 Changes in operating assets and liabilities Accounts receivable 86,961 (11,686) Inventories 23,422 253,383 Deposits paid (2,693,598) - Other receivables (20,241) (9,304) Accounts payable - (2,253) Receipt in advance 31,246 - Deposits received 438,493 - Other payables and accrued liabilities 200,924 264,967 Value added tax payable 131,234 282,696 Other taxes payable 115,513 19,784 Accrued dividends payable - 7,474 Net cash flows provided by operating activities 1,938,257 2,892,479 Cash flows from investing activities Payments to acquire property and equipment (2,381,535) (55,487) Payments to acquire intangible assets (627,861) - Repayments of note receivable 1,252,836 - Increase in note receivable - (512,986) Net cash flows used in investing activities (1,756,560) (568,473) Cash flows from financing activities Contribution by a stockholder - 1,281 Dividend paid (313,209) - Net cash flows (used in) provided by financing activities (313,209) 1,281 Effect of foreign currency translation on cash and cash equivalents 216,100 125,962 Net increase in cash and cash equivalents 84,588 2,451,249 Cash and cash equivalents, beginning of year 6,476,651 4,025,402 Cash and cash equivalents, end of year $6,561,239 $6,476,651 Forward looking statement

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.

About ALONG

ALONG Mobile Technologies, Inc. is a mobile value-added services provider in the PRC. The Company designs, produces, publishes, manufactures, provides and distributes proprietary wireless entertainment applications such as ring- tones, games, images, videos and e-books to its customers. Our Wireless Applications are intended to be downloaded by our customers on a fee-basis by means of our proprietary public downloading terminals which are installed by us in strategic locations such as shopping centers, universities, entertainment centers, cinemas, hotels, airports, restaurants and parks. Interaction enriches your life. For more information about ALONG, please visit http://www.alonggame.com/ . Our customers will soon be able to download our games via the internet from the website http://www.whatplay.cn/ .

For more information, please contact: ALONG Mobile Technologies Inc. Michael Wang Tel: +86-29-8836-0097 Fax: +86-29-8836-0090 Email: [email protected] Web: http://www.alonggame.com/

ALONG Mobile Technologies Inc.

CONTACT: Michael Wang of ALONG Mobile Technologies Inc.,
+86-29-8836-0097, or Fax, +86-29-8836-0090, or [email protected]

Web site: http://www.alonggame.com/

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