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Linktone Sells Remaining Stake in Aerospace Satellite Corporation Holding B.V. Notes
Aug 10, 2011 (04:08 PM EDT)

BEIJING, Aug. 10, 2011 /PRNewswire-Asia-FirstCall/ -- Linktone Ltd. (NASDAQ: LTON), a provider of media and entertainment content and services in key strategic markets in Asia, today announced that it has sold its remaining US$10 million in principal amount of notes issued by Aerospace Satellite Corporation Holding B.V. ("Aerospace Satellite"), realizing a gain of approximately 9% over the original purchase price of the notes. The proceeds from that transaction including the accrued interest (at an interest rate of 12.75% per annum) were used to fund the purchase of 117.9 million shares of common stock of PT Global Mediacom Tbk ("Global Mediacom") through open market transactions on the Indonesia Stock Exchange at an average price of IDR 800 (approximately US$0.095 based on the exchange rate at the time of the purchase).

Linktone is a broad media and entertainment content and service provider in key geographies across Asia, and is committed to executing its strategy to grow its portfolio of products and expand its reach across a larger audience. As part of Linktone's initiatives to improve asset efficiency, these transactions are in line with the company's cash management objectives to maximize the utilization of cash and short-term investments, to eventually benefit the Company with sufficient resources to support expansion opportunities. The Company also plans to use an additional $6.6 million of its cash to purchase Global Mediacom's common stock. Including the planned purchases and the purchases made to-date, Linktone expects to hold approximately 2.2% of Global Mediacom's common stock.

Both Aerospace Satellite and Global Mediacom are affiliates of PT Media Nusantara Citra Tbk ("MNC Group"), the majority shareholder of Linktone. Mr. Hary Tanoesoedibjo, Linktone's Executive Chairman and Chief Executive Officer, also serves as CEO of MNC Group. The sale of Aerospace Satellite Notes and purchase of Global Mediacom shares were approved by Linktone's Board of Directors, including the Company's independent director.

Mr. Tanoesoedibjo stated, "Given our strong balance sheet and robust cash position, with over $97.4 million in cash, cash equivalents and short-term investments as of March 31, 2011, we are looking to prudently manage our capital as we continue strengthening our operations and executing on our growth strategy."


Linktone Ltd. is a provider of rich and engaging services and content to a wide range of traditional and new media consumers and enterprises in Mainland China, Indonesia, Malaysia, Hong Kong and Singapore. Linktone focuses on media, entertainment, communication and edutainment products, which are promoted through the company's strong nationwide distribution networks, integrated service platforms and multiple marketing sales channels, as well as through the networks of leading mobile operators in Mainland China and Indonesia.


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," "anticipates," "future," "intends," "plans," "believes," "estimates," 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: the risk that Linktone will not be able to realize meaningful returns from investments it makes, including its acquisitions or strategic partnerships, or may be required to record provisions for impairments in the value of the Company's investments; risks associated with Linktone's growth strategy, including competition in the markets in which it operates, Linktone's ability to further expand into new markets such as the Indonesian value-added services market or the market for entertainment and edutainment products in Southeast Asia, as well as possible changes in the policies of telecommunication regulators and telecom network operators in China and Indonesia or in other laws and regulations, such as tax laws, which could adversely affect Linktone's financial condition and results of operations; the effect of the share repurchase program, if any, on the trading price of Linktone's ADSs; the risk that Linktone will not be able to effectively manage entities that it acquires or effectively utilize their resources; and the risks outlined in Linktone's filings with the Securities and Exchange Commission, including its registration statement on Form F-1 and annual report on Form 20-F. Linktone does not undertake any obligation to update this forward-looking information, except as required under applicable law.

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SOURCE Linktone Ltd.