SANTA MONICA, Calif., Jan. 9 /PRNewswire-FirstCall/ -- INNOCOM Technology Holdings, Inc. (OTC:INCM) (BULLETIN BOARD: INCM) announced today that its wholly-owned subsidiary, Sky Talent Development Limited, has entered into an initial agreement with the Administrative Committee of the Changzhou Zhonglou Economic Development Zone to establish a wholly-owned foreign enterprise ("WOFE") in Changzhou, China. Upon completion of registration, the WOFE will purchase a 25,000-sq. meter building together with 64,000 sq. meters of land in the Changzhou Zhonglou Economic Development Zone of Jiangsu Province, People's Republic of China. The purchase price is approximately $3.163 million USD (25 million Renminbi [RMB].) Mr. William Hui, Chairman and CEO of INNOCOM said, "We plan to set up a production plant for assembling mobile phone handsets with a total production capacity of 1.5million units per year. The estimated total cost of the project is approximately $4.5 million USD, which we plan to finance through internal resources and/or bank borrowings." "The new INNOCOM facility will provides INNOCOM with production capabilities for our customers who have purchased our Solutions," Mr. Hui added. "This added capability by INNOCOM is another step of our commitment to provide better quality control over our products, protect our intellectual property, and enjoy higher profit margins for our proprietary design Solutions." About INNOCOM INNOCOM is a leading mobile communication technology company in China. They have two principal business lines; mobile phone handset design and trading of mobile phone handsets and components. INNOCOM provides customized mobile phone design services to licensed manufacturers in China. Their services include hardware system design based on chipsets such as integrated circuits sourced from external suppliers, application software design and mobile phone handset casing design. In addition to design services, the company provides sourcing of mobile phone handsets and components for customers on a wholesale basis. INNOCOM competes with other communication technology companies by emphasizing provision of higher quality consumer-driven services that assist INNOCOM customers in identifying and/or forecasting trends in mobile handsets demand, providing comprehensive and total solution services, managing cost effectiveness, and demanding product quality and reliability in both hardware and software functionality. About Changzhou City Changzhou City is located in China's very prosperous Yangtze River delta. It is administratively divided into 2 county-level cities (Jintan and Liyang) and 5 districts (Wujin, Xinbei, Tianning, Zhonglou and Qishuyan.) The city covers 4,375 sq. km and has a population of 3.49 million. The urban area covers 1,864 sq. km and has 2.17 million inhabitants. In 2005, its GDP reached RMB130.2 billion ($16.476 billion USD), with a per capita GDP of $4,500 USD. Its municipal financial revenues were $2.784 billion USD (RMB 22 billion.) Twenty-nine of the "Fortune 500" companies have set up businesses in Changzhou. There are 45,000 private companies in the city with a total registered capital of $7.378 billion USD (RMB58.33 billion.) Changzhou is rated as one of the "50 Chinese cities with best investment Environment" and ranked 26th among the "Best cities with biggest comprehensive power" in China. Source: Changzhou Municipal People's Government, Changzhou Information Office (http://www.changzhou.gov.cn/) Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations. CONTACT: Ashley Hull 310-450-9100 opt. 2 DATASOURCE: INNOCOM Technology Holdings, Inc. CONTACT: Ashley Hull, +1-310-450-9100, opt. 2, for INNOCOM Technology Holdings, Inc.

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