BEIJING, November 9, 2006/Xinhua-PRNewswire/ -- Hurray! Holding Co., Ltd. (Nasdaq: HRAY - News), a leader in wireless music distribution and other wireless value-added services, artist development and music production, and wireless value-added services management software in China, today announced the signing of definitive agreements to acquire a 30% equity interest in Beijing New Run Entertainment Co. Ltd., a leading independent record label in China.

New Run Entertainment specializes in music production and distribution for its portfolio of artists which include some of the most popular singers in China, such as Pang Long, Nanhe Beidou, Chang Hai, Da Mai and Han Dong. Many songs produced by New Run Entertainment and its artists, such as "Liang Zhi Hu Die (Two Butterflies)" and "Ni Shi Wo De Mei Gui Hua (You Are My Roses) ", were not only top hits in ringtones, ringback tones and full track downloads on mobile phones in China, but also ranked Number 1 on Baidu's music search platform and China Mobile's wireless music board.

In the acquisition, Hurray! will invest a total of $2.25 million in cash for a 30% equity interest of New Run Entertainment. The consideration payable by Hurray! and the respective ownership interests of the parties in New Run Entertainment are subject to adjustment based on 12 months financial performance of New Run Entertainment following the close of the acquisition. The transaction is expected to be accretive to Hurray!'s earnings. Hurray! currently expects the transaction to close before December 31, 2006, subject to certain regulatory approvals and customary closing conditions in China.

China eCapital served as exclusive financial advisor to Hurray! in the transaction.