Shanghai, China, August 3 -- In the latest of a growing list of completed China venture capital transactions for 2004, international law firm Morrison & Foerster LLP acted for Shanghai-based Smartpay Jieyin Ltd. ("Smartpay"), an electronic payment services leader in China, in its US$9,000,000 round of equity financing. Proceeds for the financing will be used to further expand Smartpay's Electronic Payment Services in China.

Smartpay, formerly known as Sumit Mobile Systems Ltd, announced the completion of the US$9,000,000 round of equity financing, led by 2b Holdings and existing shareholders in the company, including Lunar Group, on July 27, 2004. Smartpay will use the capital to invest in other consumer electronic payment services to a number of other direct-to-consumer (D2C) and peer-to-peer (P2P) applications and services and expand its geographic reach to Anhui, Chongqing, Jiangsu and other provinces throughout China.

In completing the deal, Morrison & Foerster drew upon its significant Silicon Valley expertise in advising emerging companies throughout their lifecycles from seed round financing to initial public offering, as well as its years of on-the-ground experience in venture capital-related matters in China.

Chuck Comey, Shanghai managing partner who led Morrison & Foerster's transaction team commented, "We're delighted to work with Smartpay as they continue to lead and pioneer this services sector in China. This significant round of financing should give further traction to management's plans to expand the Company's geographic base and to develop complementary services for China's growing mobile subscriber base."

Derek Sulger, Smartpay's CFO added: "We are very pleased by the reception that Smartpay received from some of the foremost investors in our space and the strong support we received from Morrison & Foerster in executing this transaction. With the rapid rollout of our services in China, it is critical for us to work with advisors that understand our business, can quickly execute in Chinese market place and who have a proven track record. The working relationship that we have developed with Morrison & Foerster is of strategic importance to our future growth."

Smartpay

Smartpay operates a consumer electronic payment service in China under the brand name "Jieyin" meaning "quick pay", and has signed contracts with multiple mobile operators, banks and merchants allowing Chinese consumers of the payment and pre-payment service to instruct electronic payments via an SMS, web, IVR or WAP interface to pay their mobile and VoIP-based long distance phone bills, utility bills as well as to purchase tickets including lottery tickets and other products. Smartpay's board and management include founders of some of China's most successful technology companies, including Linktone, a Shanghai-based provider of wireless services for mobile phone users in China which Morrison & Foerster represented in its US$86 million initial public offering of American Depositary Shares listed on the NASDAQ National Market in March 2004.