Sky-mobi (MOBI) Revises Guidance, Announces Conference Call to Discuss First Quarter Fiscal 2012 Results

HANGZHOU, China, Aug. 12, 2011 (GLOBE NEWSWIRE) — Sky-mobi Limited (“Sky-mobi” or the “Company”) (Nasdaq:MOBI), a leading mobile application store and mobile social network community operator in China, today revised its guidance for the fiscal first quarter ended June 30, 2011 (the “first quarter 2012”) and provided guidance for the 2012 fiscal year.

For the first quarter 2012, Sky-mobi now expects revenues to be in the range of RMB164 million to RMB167 million, down from its previous guidance of RMB180 million to RMB190 million. Revenues for the fiscal year ending March 31, 2012 are expected to be in the range of RMB 680 million to RMB 690 million.

“We expect revenues for the quarter to be approximately 10% below our original expectations due to our lower than expected overall handset sales in China and a more difficult operating environment for mobile service providers, which has lowered our monetization rate on user activities,” said Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi. “At the same time, we have seen strong growth for the Maopao Community and expect the growth of the Maopao Community to continue in fiscal 2012 and beyond.”

The Company is currently finalizing its financial results and will conduct a conference call at 8:00 a.m. ET on Monday, August 22, 2011, to discuss results for the first quarter 2012.

A live audio webcast of the conference call will be available on Sky-mobi’s website at http://ir.sky-mobi.com/events.cfm.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1 (877) 275-8968. International callers should dial +1 (706) 643-1666. When prompted by the operator, mention conference pass code 91270572.

If you are unable to participate in the call at this time, a replay will be available for two weeks following the call and can be accessed on the Company website or by dialing the following numbers: +1 (855) 859-2056, international callers dial +1 (404) 537-3406, and enter the pass code 91270572.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as ”believes,” ”expects,” ”anticipates,” ”intends,” ”estimates,” the negative of these terms, or other comparable terminology. Such statements, including the statements relating to the Company’s expectation of its operating and financial results, are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Potential risks and uncertainties include the effectiveness, profitability, and marketability of the company’s solutions; the Company’s limited operating history; measures introduced by the PRC government and mobile network operators aimed at mobile applications-related services; the Company’s ability to maintain cooperation relationships with handset companies, content providers and payment service providers; its dependence on mobile service providers, and ultimately mobile network operators, for the collection of a substantial majority of its revenues; billing and transmission failures, which are often beyond the Company’s control; its ability to compete effectively; its ability to capture opportunities in the expected growth of the smart phone market; its ability to obtain and maintain all applicable permits and approvals; general economic and business conditions; the volatility of the company’s operating results and financial condition; the company’s ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company’s filings with the Securities and Exchange Commission. These forward-looking statements are based on current expectations, assumptions, estimates and projections about the Company and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

About Sky-mobi Limited

Sky-mobi Limited operates the leading mobile application store in China as measured by revenues in 2009, according to Analysys International. The company works with handset companies to pre-install its Maopao mobile application store on handsets and with content providers to provide users with applications and content titles. Users of its Maopao store can browse, download, and enjoy a range of applications and content, such as single-player games, mobile music, and books. The Company’s Maopao store enables mobile applications and content to be downloaded and run on various mobile handsets with different hardware and operating system configurations. The company also operates a mobile social network community in China, the Maopao Community, where it offers mobile social games, as well as applications and content with social network functions to its registered members. The Company is based in Hangzhou, the People’s Republic of China. For more information, please visit: www.sky-mobi.com.

The Sky-mobi Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8458

CONTACT: Sky-mobi Limited
         Mr. Carl Yeung, CFO
         Phone: +(86) 571-87770978 (Hangzhou)
         Email: ir@sky-mobi.com

         CCG Investor Relations
         Elaine Ketchmere, Partner and VP
         Phone: +(1) 310-954-1345 (Los Angeles)
         Email: elaine.ketchmere@ccgir.com