KongZhong Corporation Announces Court Approval of Settlement of Class-Action Lawsuit

KongZhong Corporation Announces Court Approval of Settlement of Class-Action Lawsuit

April 24, 2006

    BEIJING, April 24 /Xinhua-PRNewswire/ -- On April 14,
2006, Judge Shira A. Scheindlin of the United States
District Court for the Southern District of New York
approved the settlement agreement reached by KongZhong
Corporation (Nasdaq: KONG), a leading provider of wireless
value-added services and one of leading wireless internet
portals in China, to resolve a securities class action
arising out of the Company's 2004 initial public offering. 
Under the settlement, the Company will pay $3.5 million to
resolve all claims asserted against it and the other
defendants in this action.  Persons who purchased or sold
the Company's ADSs between July 9, 2004 and August 17, 2004
may be eligible to recover pursuant to the settlement.  The
Company set aside the settlement amount of $3.5 million in
an escrow account and made a provision during the third
quarter 2005.  

    The Company believes that it has been in compliance
with securities laws and made appropriate and necessary
disclosures in its prospectus dated July 9, 2004 at the
time of the initial public offering.  The Company
nevertheless agreed to this settlement to avoid the
expense, distraction and uncertainty associated with
continued litigation without admitting any fault, liability
or wrongdoing.

    About KongZhong 

    KongZhong Corporation is a leading provider of wireless
value added services and one of China's leading wireless
internet portals.  The Company delivers wireless value
added services to consumers in China through multiple
technology platforms including wireless access protocol
(WAP), multimedia messaging service (MMS), JAVA, short
messaging service (SMS), interactive voice response (IVR),
and color ring back tone (CRBT).  The Company also operates
a wireless internet portal which enables users to access
media and entertainment content directly from their mobile
phones.

    This press release contains "forward-looking
statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  These forward-looking statements
include statements regarding the settlement of pending
litigation.  These statements involve risks and
uncertainties and our actual results may differ materially
from those expressed or implied in the statements in this
press release.  Potential risks and uncertainties include,
but are not limited to, any uncertainties associated with
the signing of the memorandum of understanding preliminary
to a settlement agreement, the negotiation of a definitive
settlement agreement and its approval by the court. For
additional discussion of these risks and uncertainties and
other factors that may impact the reliability of the
forward-looking statements in this press release, please
see the documents we file from time to time with the
Securities and Exchange Commission.  We assume no
obligation to update any forward-looking statements, which
apply only as of the date of this press release.

    For more information, please contact:

    Investor Contacts:
     JP Gan
     Chief Financial Officer
     Tel:   [phone]
     Email: [e-mail]

     Tip Fleming
     ChristensenIR 
     Tel:   [phone]
     Email: [e-mail]

    Media Contact:
     Xiaohu Wang
     Manager
     Tel:   [phone]
     Email: [e-mail]

SOURCE  KongZhong Corporation