KKBOX and Chung-Hwa Telecom JV to Cultivate Digital Music

KKBOX and Chung-Hwa Telecom JV to Cultivate Digital Music

October 25, 2007

Taiwan Telecom Giant Moves to Promote Online Music
Aggressively


    TAIPEI, Oct. 25 /Xinhua-PRNewswire/ -- KKBOX -- a
digital music subsidiary of Skysoft Inc. -- announced today
the reaching of a strategic investment deal with Taiwan's
telecom giant Chung-Hwa Telecom (NYSE: CHT), during which
CHT will make an undisclosed amount of cash investment to
assume its 30% stake.  This Joint-Venture marks a new
market paradigm for the digital music industry in Taiwan.

    Launched in Jan. 2005, KKBOX has successfully won
credits on its unique blend of conventional
subscription-download model with strong and exclusive
social-networking features; it differentiates itself from
other music download service providers by offering an array
of services for millions of users to legitimately listen to
music, including unlimited music streaming, creating their
own music blogs, sharing their playlists and making new
friends based on their interests.  Being the world's
largest collection of Chinese songs, its database offers
content from over 140 music labels with 1.5 million songs.
KKBOX has become Taiwan's top music download services
provider with close to 300,000 paying subscribers and over
3.5 million registered users as of July 2007. 

    CHT currently dominates over 85% of Taiwan's consumer
broadband internet access market, and is a leader in the
nation's mobile 2.5G and 3G phone service subscribers. CHT
announced continued revenue growth in a recent report with
a majority generated from its 4.17m broadband household
subscribers and 8.56m mobile subscribers.  It is believed
that through this new investment, KKBOX will receive
immediate positive impact on sales and profit through
tighter integration with CHT's existing broadband and
online-payment infrastructure, as well as its nationwide
distribution channel.

    With the CHT's JV-cooperation, KKBOX is planning on new
business models to drive more customers by extending its
services from the existing PC platform to mobile phones and
digital home appliances. 

    KKBOX's holding company -- Skysoft Inc., operates with
its mission to focus on investing and developing digital
music applications and products, and is eyeing the huge
business opportunities ahead in the digital music industry.
 Institutional investors in Skysoft Inc. include: Adobe
Systems, China Development Industrial Bank, Dwango, Orix
Corp. and TransCosmos Inc. etc.

    KKBOX Website: http://www.kkbox.com.tw/ 
    Skysoft Inc. Website: http://www.skysoft-inc.com/ 


    For more information, please contact:

     Ms. Eva Lau
     Veda International Corp.
     Tel:   [phone] Ext.126
     Email: [e-mail]

     Ms. Clio Lin
     Skysoft Inc.
     Tel:   [phone] Ext.101
     Email: [e-mail]
     Web:   http://www.skysoft-inc.com/