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Asia-Pacific Tunes into Unlimited Music Downloads with MusicStation Launch in Hong Kong



    Mobile music company Omnifone, today announces the first rollout
    of its award-winning unlimited music downloads service, MusicStation,
    in Asia-Pacific with Hutchison Telecommunications (Hong Kong)
    Limited's mobile operation 3 Hong Kong.

    3 MusicStation will provide 3 Hong Kong's mobile users unlimited
    access, when subscribed, to a vast catalogue of music from all the
    major record labels; Universal Music Group, Sony BMG Music
    Entertainment, EMI Music and Warner Music Group, as well as leading
    independents, on a range of new and existing handsets at an innovative
    price point of just HK$12 per week* (including data charges).

    "Hong Kong is the gateway to Asia-Pacific and so strategically
    important for Omnifone's global ambitions," said Rob Lewis, CEO of
    Omnifone. "Partnering with 3 Hong Kong, one of the most innovative
    mobile network operators in the world, enables us to make the first
    step in bringing MusicStation to what will be the world's most
    important digital music market."

    3 MusicStation gives users the freedom to download, play and share
    whatever music they want wherever they are, directly on their handset.
    Customers can discover and download any new music risk-free at any
    time, enabling legitimate and effective music discovery. 3
    MusicStation also features live charts, a personalised music news
    service and a music based social network community capability which
    enables users to make friends, build and share playlists and music
    recommendations with other 3 MusicStation users.

    3 Hong Kong Chief Operating Officer Amy Lung, said; "At 3 we pride
    ourselves on delivering an innovative suite of cutting edge services
    to our subscribers. In launching 3 MusicStation, we are the first
    operator in Asia-Pacific to rollout an All You Can Eat (AYCE) music
    subscription service that gives consumers the freedom to access as
    much music as they want, at any time, anywhere in Hong Kong, on a wide
    range of new and existing music mobiles over the 3 network."

    3 MusicStation is available on 14** new or existing 3/3.5G Nokia
    and Sony Ericsson music mobiles, either preinstalled or alternatively
    available for Over The Air (OTA) download from 3 Hong Kong's 3G
    portal. 3.5G (High Speed Data Packet Access - HSDPA) handsets
    including the Nokia 6120, N95 and Sony Ericsson W910i will deliver
    full track downloads over the mobile network in just a few seconds and
    an entire album can be downloaded in under a minute.

    Further 3 MusicStation handsets from a range of manufacturers will
    be added in the run up to Christmas.

    Omnifone sets compelling Asia-Pacific pricing to encourage legal
    music consumption

    Omnifone has set special pricing for MusicStation across
    Asia-Pacific countries which will encourage legal music consumption
    across the region. 3 MusicStation users will pay just HK$12 per week*
    for unlimited access to the largest catalogue of local and
    international music available in Hong Kong.

    Sandy Monteiro, Senior Vice President (ASEAN), Vice President -
    Digital (South East Asia excluding China), Universal Music Group
    International said, "Asia-Pacific is a huge market for the music
    industry, but piracy issues have stifled the growth of legal music
    sales in recent times. The widespread acceptance of the mobile phone
    as a device to experience music in the region is providing a great
    opportunity for the industry to get a better sense of the true value
    of music.

    The arrival of 3 MusicStation is timely; it's a compelling music
    experience on mobile with competitive pricing, easy to use, widespread
    access to exciting content, and is available to virtually all music
    mobile handsets. As the leading player in the market, Universal Music
    will benefit greatly from the launch of 3 MusicStation in Hong Kong
    and its rollout across the region, as will music in general."

    JF Cecillon, Chairman & CEO, EMI Music International said,
    "Subscription based mobile music services are more established in
    Asia-Pacific than in many other parts of the world. The launch of 3
    MusicStation in Hong Kong is a great opportunity for EMI and its
    artists to be a part of this burgeoning market and to help drive the
    development of legal music consumption."

    Lachie Rutherford, President, Warner Music Asia-Pacific, said, "In
    order to meet the challenges posed by illegal copying of music in this
    region, we need to develop attractive legitimate alternatives. 3
    MusicStation provides Warner Music Asia-Pacific with a great way to
    tap into this market via a convenient, easy-to-use and well-priced
    service that provides consumers with a compelling mobile music
    experience."

    Ruuben van den Heuvel, Senior Vice President, Digital and New
    Business Development, Sony BMG Music Entertainment Asia said, "We are
    delighted that 3's customers can now enjoy the rich music offering
    that MusicStation enables. Millions of music fans in Hong Kong being
    connected to music 24/7 provides the best way for Sony BMG to continue
    to enrich the lives of many through the incredible creativity of our
    artists."

    Full Traditional Chinese implementation for 3 MusicStation

    Confirming Omnifone's strategic focus on localisation, Omnifone
    confirms the 3 MusicStation service features a full Traditional
    Chinese interface in addition to an English language interface. The
    implementation of wide handset reach double-byte character support
    will also assist other proposed rollouts in Asia-Pacific. The 3
    MusicStation service will also be supported by a local Omnifone
    editorial team providing full editorial support for localised music
    news and content, a key characteristic of every MusicStation rollout.

    The Asia-Pacific market

    Asia-Pacific is the world's fastest growing digital music market,
    now accounting for 25% of global digital sales. Although PC and
    broadband penetration is fragmented across the region, Asia-Pacific
    has a vibrant mobile culture with many consumers purchasing between
    two and three new handsets every year. Asia-Pacific boasts the highest
    levels of 3G penetration in the world with 53% of mobile subscribers
    in Japan and 35% of mobile subscribers in South Korea currently using
    3G handsets. (Source: IFPI Digital Music Report 2007).

    Though low iPod penetration and the lack of any iTunes stores in
    Asia-Pacific (outside of Australia, Japan and New Zealand) means that
    many consumers chose to copy or side-load music rather than purchasing
    tracks legally, subscription based streaming and download services
    have proved popular throughout the region. There is a strong
    opportunity for mass market subscription based music services which
    can in turn promote the take-up of legal music consumption across the
    region.

    Robin Bloor, international IT analyst with Bloor Research said,
    "Setting a very low weekly subscription fee for 3 MusicStation is a
    sensible move. It will be seen as an incentive for mobile users in
    Asia-Pacific, who rarely pay for music on PCs or MP3 players. The
    Asia-Pacific market is predicted to be the largest for digital music
    over the next few years. Launching with 3 Hong Kong allows Omnifone to
    leverage this developed part of Asia-Pacific where 3G penetration
    levels are high, to gain a strategic foothold in the region.
    MusicStation's subscription based model is likely to help 3 Hong Kong
    hold on to customers, reducing churn and incrementally increasing
    ARPU+ from music. Other operators will surely follow as digital music
    becomes a clear differentiator. Asia-Pacific is not scheduled to get
    the iPhone any time soon - maybe not for years - so Omnifone is
    stealing a march on Apple's iTunes in an important market, where
    iTunes has no significant footprint."

    Further MusicStation rollouts imminent

    The 3 Hong Kong launch comes just weeks after Vodafone announced
    that it will roll out MusicStation in the UK in November. Further
    rollout announcements will be made imminently.

    Omnifone is working with 27 other mobile network operator partners
    to rollout MusicStation across 40 European, Asia-Pacific and African
    countries including; Australia, Belgium, Czech Republic, Denmark,
    France, Germany, Greece, Hungary, India, Ireland, Italy, Netherlands,
    New Zealand, Norway, Philippines, Poland, Portugal, Romania, Russia,
    Singapore, South Africa, Spain, Switzerland and Turkey.

    *Subscribers pay a small weekly fee of just HK$12 including data
    charges, directly through their existing 3 contracts. 3 MusicStation
    is available to download to new and existing mobiles from 3 Hong
    Kong's 3G portal. 3 MusicStation handsets will be available in 3 Hong
    Kong stores.

    **See 3 MusicStation handset range below.

    + Average revenue per user (ARPU)

    Notes to editors

    About 3 MusicStation

    3 MusicStation will run on virtually all 3/3.5G music compatible
    mobiles. 3 MusicStation's user interface and functionality are
    virtually identical across all manufacturer handset models, providing
    the same intuitive user experience on every handset.

    Built-in networked functions, including the ability to share
    playlists with other users, mean that 3 MusicStation delivers a truly
    compelling music experience on the mobile for the first time in
    Asia-Pacific. 3 MusicStation customers will be able to build a
    music-based social network, where they can create a profile and
    message their friends with track and playlist recommendations. 3
    MusicStation uses 'collaborative filtering' and 'nearest neighbour
    technology' to identify and recommend new tracks, artists and
    playlists that users are likely to be interested in.

    Downloaded 3 MusicStation tracks and user playlists are stored
    centrally so that if a 3 Hong Kong customer's mobile is stolen, lost
    or upgraded, the replacement handset will automatically restore the
    customer's music, playlists, friends and preferences the first time 3
    MusicStation is switched on.

    3 MusicStation automatically stores a customer's favourite tracks
    on the phone's internal or removable memory. Whilst some phones can
    store thousands of tracks, others store less than one hundred. 3
    MusicStation maximises the capabilities of any mobile phone using
    unlimited downloads from the network to provide access to any of the
    catalogue at any time. 3 MusicStation's technology also ensures that
    the memory allocated on the phone is always used to store the
    customer's favourite and about-to-be-played music. This means that
    users can listen to their favourite tracks when in Flight Safe mode
    and have unlimited access to the full catalogue when connected to a 3G
    or 3.5G network.

    About Omnifone

    Award winning mobile music company Omnifone was founded in 2003 by
    leading technology entrepreneurs Rob Lewis, Phil Sant and Mark Knight.
    The founders, along with Chairman Jim Feeney, established Omnifone
    with the aim of bringing legal and affordable digital music to the
    mass market over the only digital medium that is ubiquitous globally;
    mobile handsets.

    Omnifone's next generation music service MusicStation is a low
    cost All You Can Eat (AYCE) subscription-based mobile music service
    that is pre-installed on participating partner operator handsets and
    delivers the world's music to most mobile handsets for a small weekly
    fee. Omnifone uses its unique Device Adaptive Architecture to
    instantaneously port MusicStation to multiple operator handsets,
    reducing time to market and giving the highest possible handset reach
    of any mobile music service globally.

    Omnifone has gained global support for MusicStation from the music
    and mobile industries winning the prestigious Music Service Award
    Meffy, at Mobile Entertainment Market (MEM) 2007 in Monte Carlo on 5
    June 2007 and also the Red Herring 100 award. The company has an
    established network of 30 partner networks, reaching across 40
    countries in Europe, Asia-Pacific and Africa. Omnifone's founders sold
    the successful internet software development company Cromwell Media
    for GBP 850m in March 2000 and subsequently sold Silicon.com and
    associated European assets they founded, to major online publishers,
    including NASDAQ-listed CNET Networks. Omnifone has offices in London,
    Scotland, Sweden, Hong Kong and South Africa. For further information,
    please visit www.omnifone.com.

    About 3 Hong Kong and Hutchison Telecommunications (Hong Kong)
    Limited

    Hutchison Telecommunications (Hong Kong) Limited ("Hutchison
    Telecom Hong Kong"), a subsidiary of Hutchison Telecommunications
    International Limited*, is one of the leading mobile operators in Hong
    Kong with over 2 million subscribers. It provides 3G and 2G services
    under the "3" brand.

    Hutchison Telecom Hong Kong has always been a pioneer in the
    evolution of mobile development, deploying multiple technologies in
    Hong Kong since 1985, including 1G analogue (AMPS/TACS), 2G digital
    (GSM/CDMA), 2.5G high speed data transmission (GPRS/IS95B) and 3G
    video mobile communication services (WCDMA). It was the first operator
    in Hong Kong to roll out a world-class 3G service, forming an integral
    part of Hutchison Whampoa Group's global 3G footprint. With the launch
    of 3G services in January 2004 under the "3" brand, Hutchison Telecom
    Hong Kong has firmly established its leadership position in the 3G
    market in Hong Kong, providing a rich portfolio of ground-breaking
    video mobile communication services, superb network quality and
    extensive automatic international roaming and data roaming coverage.
    For more information about "3", please visit the "3" website at
    www.three.com.hk.

    *Hutchison Telecommunications International Limited is listed in
    New York and Hong Kong and is a subsidiary of the Hutchison Whampoa
    Group.

    3 MusicStation handset range at launch
    Sony Ericsson W660i
    Sony Ericsson K530i
    Sony Ericsson W880i
    Sony Ericsson K810i
    Sony Ericsson Z610i
    Sony Ericsson K610i
    Sony Ericsson K800i
    Sony Ericsson T650i
    Sony Ericsson W910i
    Sony Ericsson K770i
    Nokia N73
    Nokia 6120
    Nokia N95
    Nokia E65