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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 595)

VOLUNTARY ANNOUNCEMENT: COOPERATION AGREEMENT WITH TSO

This is a voluntary announcement made by AV Concept Holdings Limited ("Company" and its subsidiaries, together referred to as the "Group").
The board of directors ("Directors") of the Company is pleased to announce that on 12 March 2014, the Company and Telecom Service One Limited ("TSO") entered into a cooperation agreement ("Cooperation Agreement") in relation to the cooperation ("Proposed Cooperation") as an online to offline promotion partner, including but not limited to promotion for smartphone accessories and mobile games.
TSO is a company incorporated in Hong Kong engaged in the provision of repair services for mobile phones and consumer electronic devices and sale of mobile phone accessories, and is a wholly owned subsidiary of Telecom Service One Holdings Limited, a company incorporated in the Cayman Islands with limited liability whose shares are listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (Stock code: 8145). To the best of the Directors' knowledge, information and belief and having made all reasonable enquiries, each of TSO and its ultimate beneficial owners is a third party independent of and not connected with the Company and its connected persons (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited).
Pursuant to the Cooperation Agreement, the Company has agreed to appoint TSO as a fulfillment distributor to distribute and sell game cards through its network in Hong Kong and for offline promotion of the games of Koocell Limited ("Koocell"), a mobile phone application program and game developer and a subsidiary of the Company, and Me2on Co., Ltd, an associate of the Company. The Company will be responsible to promote the offline products or services to the users of all games and applications under Koocell. TSO will be responsible to distribute game cards through its distribution network in Hong Kong, and to promote the games of Koocell and Me2on Co., Ltd. Under the Cooperation Agreement, TSO will act as a strategic mobile game promotion channel for the Company. The Company and TSO will further agree on the cooperation details and the relevant payment terms under the Proposed Cooperation under further agreements between the parties.

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The term of the Cooperation Agreement will be for a period of 2 years from the date of the Cooperation Agreement, unless terminated or extended. The Cooperation Agreement could be terminated by either party upon 30 days prior written notice to and consent by the other party.
It is the Group's intention to develop and market smartphone game application and mobile phone application business in the Greater China region. The Group is of the view that the entering into of the Cooperation Agreement and the Proposed Cooperation will assist the business chain of the Group's smartphone game and application business and to bring satisfactory return to the Group.
On behalf of the Board

AV Concept Holdings Limited So Yuk Kwan Chairman

Hong Kong, 12 March 2014

As at the date of this announcement, the Board comprises three executive Directors, Dr. Hon. So Yuk Kwan (Chairman), Mr. So Chi On and Mr. Ho Choi Yan Christopher and three independent non- executive Directors, Dr. Lui Ming Wah, SBS, JP, Mr. Charles E. Chapman and Mr. Wong Ka Kit.

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