VoIP Services, Blocked by Government, May Be Difficult to Continue

JINAN, China--(BUSINESS WIRE)--Jinan Yinquan Technology, the wholly owned subsidiary of China VoIP & Digital Telecom Inc. (CVDT.OB), today announced that as a result of the political riot on July 5 in Urumqi, the capital of the Xinjiang Uygur Autonomous region, the country issued an order in July 2009 to block VoIP services, which may be difficult to continue. The government has not removed the order to resume services.

Mr. Li Kunwu, CEO of the company, said: “The indefinite block of VoIP services is a political need at this time and we cannot change the government’s policy. CVDT is considering discontinuing the VoIP service and focusing on providing the virtualization solutions and services.”

In addition, Mr. Li added, “While the block that happened this time is a special issue, it is beyond our expectations that the government has not lifted the order to resume VoIP services. As a result, the company's telecom service business has suffered tremendously. We hope that all investors understand that the company’s future VoIP operations are facing great uncertainties and challenges.”

About China VoIP & Digital Telecom Inc.

China VoIP & Digital Telecom Inc. offers Voice Over the Internet Protocol (VOIP) telecommunications services together with the virtualization technology application in the People's Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd. Through Jinan Yinquan, China VoIP is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its NP Soft Switch system in China and is currently in the testing stages of other Information Technology products. More information can be found at www.chinavoip-telecom.com.

About Virtualization Technology

Virtualization is a proven software technology that is rapidly transforming the IT landscape and fundamentally changing the way people compute.

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Yinquan Investor:
Jinan Yinquan Technology
Michelle Wong, +86-531-8702-7114
michellewong@yinquan.cn
or
Great Wall Research LLC
John Armstrong, 203-536-1928
jarmstrong@greatwallresearch.com