KongZhong Receives Investment from Nokia Growth Partners

Leading Mobile Entertainment Company in China Secures Strategic Expansion Capital

BEIJING, -- KongZhong Corporation (Nasdaq: KONG), a leading mobile Internet company in China, today announced that it has reached a non-binding agreement with Nokia Growth Partners (NGP) to receive an investment of about US$6.8 million in 5-year convertible senior notes. NGP would also receive warrants to purchase an additional 2.0 million American Depositary Shares (ADS) at US$5.0 per ADS, exercisable within five years.

"I'm truly pleased to welcome Nokia Growth Partner's investment in KongZhong. As we prepare for 3G in the China mobile market, we are seeking to enhance our strong existing mobile operator channels with equally powerful non-operator channels," said Leilei Wang, CEO and Chairman of KongZhong. "Nokia is the leading mobile device manufacturer in the world and mainland China with significant market share. We have developed a good working relationship with Nokia China by connecting our various mobile value-added, gaming and community services through their powerful mobile device platform and look forward to expanding our relationship with Nokia."

"Nokia Growth Partners invests in best of breed mobile services and technology companies with significant potential for future growth and industry leadership and whose businesses can benefit from a deeper relationship with Nokia," said Paul Asel, Managing Partner of Nokia Growth Partners. "KongZhong is a premier mobile entertainment company. Our investment reflects the belief in the leading role KongZhong can take as China embarks on 3G mobile services."

The convertible senior notes would initially pay an annual interest of 8% subject to reduction to 6% based on the financial performance of the Company. The conversion price would equal the average closing price per share of the Company's ordinary shares for a period of 75 trading days prior to the date of this announcement. The notes would mature in five years and could be prepaid at the Company's option after three years. The transaction is subject to completion of definitive documentation.

About Nokia Growth Partners

Nokia Growth Partners is the premier venture investor focused on growth stage companies in the mobile industry. With US$350 million under management for direct and fund of fund investments, Nokia Growth Partners is the preferred investor for companies, funds and people that are changing the global face of mobility, communications and the Internet. Nokia Growth Partners offers portfolio companies a global perspective on the mobile industry and the strategic guidance, network and platform to accelerate growth both domestically and internationally. Nokia Growth Partners also works closely with Nokia, its sole limited partner, to provide a superior return on investment while increasing the likelihood and magnitude of success in the companies in which it invests. Nokia Growth Partners has offices in Silicon Valley, Finland, China and India. See http://www.nokiagrowthpartners.com for more information.

About KongZhong

KongZhong Corporation is a leading mobile Internet company in China. The Company delivers wireless value-added services to consumers in China through multiple technology platforms including wireless application protocol (WAP), multimedia messaging service (MMS), JAVATM, short messaging service (SMS), interactive voice response (IVR), and color ring-back tone (CRBT). The Company operates three wireless Internet sites, Kong.net, Ko.cn and cn.NBA.com, which enable users to access media, entertainment and community content directly from their mobile phones. The Company also designs and operates mobile games, including mobile online games, downloadable offline games and WAP games.