Qiao Xing Universal Telephone (NASDAQ: XING) announced today that its subsidiary, Huizhou Qiao Xing Communication Industry ("HZQXCI"), recently launched six models of mobile phone handsets under the 'COSUN' brand name.

This means that XING now has two mobile phone handset brands on the market that offer a product mix. The existing brand, 'CECT,' from its subsidiary CEC Telecom ("CECT"), targets the higher-end market while the new brand, 'COSUN,' from HZQXCI focuses primarily on the mass consumer market.

CECT is among the limited number of enterprises that has been granted licenses for the manufacturing and selling of GSM and CDMA mobile phones in China. In the past couple of years, in addition to being XING's operating subsidiary for the indoor phone business, HZQXCI has been engaging in the design and production management of GSM mobile phone handsets for CECT under the 'CECT' brand. In July, 2004, HZQXCI, on account of its being in the same group as CECT, obtained permission from the Ministry of the Information Industry of the PRC to manufacture and sell mobile phone handsets under the 'COSUN' brand.