IR Update for August 28, 2014

Hello,

Last month we provided a comprehensive description of our FL Mobile business, which you can access by clicking on the link. Today we want to discuss the globalization of this business.  FL Mobile is making its debut in Korea.

FL Mobile’s first entrant to the Korean game market is “God of Battle” (투신:영혼을베는자), a role-playing game (RPG) that provides real time player-versus-player as well as group play action in a “dungeon” environment. The game features increasing skills through seven levels of play as well as vibration-enhanced gaming.

“God of Battle” was introduced to the Korean marketplace through a two-week program before the game’s release, which resulted in nearly 36,000 pre-registered users. At release, FL partnered with Olleh Market in Korea, which provided online push marketing. The game became the second most downloaded and 11^th top grossing in that market. Also introduced on Naver, the largest search site in Korea with an average of 20 million daily users, the game reached that site’s top 10 in free downloads and in revenue. It will be introduced on a third telecom market, LG U+ in early September.

In addition to the online marketing, promotion is being supplemented with elevator ads, outdoor movie ads shown on Seoul’s busy Gangnam Boulevard and Gangnam Station, reputed to be Seoul’s busiest subway station, with local partners and support which is proving to be effective at helping maintain the game’s popularity.

We are pleased with the FL Mobile development and expansion and view South Korea as an important market for our globalization efforts.

Until the next update, please e-mail questions to investors@nq.com. Please note that e-mail is preferred for your questions and comments.

Regards,

NQ Mobile IR

Social media is often the quickest, most efficient way to receive accurate and up-to-date news and information about NQ Mobile. Follow us on Twitter at @NQMobile and @NQMobileIR for the latest updates.

We have also added a button on our NQ IR home page (ir.nq.com) that directs users to our IR blog, which includes these updates.

'BillNeuburger' pid='48985' datel Wrote:Although I understand what you are saying about the lock-up, insiders cannot sell as they cannot buy until the 20-F is filed, the blackout period is in place until the 20-F is filed, and probably until earnings are released as well. Can't imagine there would be much lag-time between the 20-F release and earnings release.. So, there isn't a way to legally circumvent this. Sure, there might be a seeking alpha blog or a B.S. tweet by Queen Carson, but it will not reflect the reality of the situation. Of course if they file the 20-F, I think all shareholders would like an extended lock-up, and hopefully the company does this,

What you said makes sense, but would be better to be clarified by the IR update. that's basically my suggestion to the NQ. I'm not familar with the definition of insiders, but the stock lockup was originally applied to the company that co-owned by 3 NQ co-founders. Obviously CEO Lin Yu and COO+CFO Shi  are 2 of them and are insiders, but not sure about the other one Xu Zhou.

'gaosl11' pid='48989' datel Wrote:

'BillNeuburger' pid='48985' datel Wrote:Although I understand what you are saying about the lock-up, insiders cannot sell as they cannot buy until the 20-F is filed, the blackout period is in place until the 20-F is filed, and probably until earnings are released as well. Can't imagine there would be much lag-time between the 20-F release and earnings release.. So, there isn't a way to legally circumvent this. Sure, there might be a seeking alpha blog or a B.S. tweet by Queen Carson, but it will not reflect the reality of the situation. Of course if they file the 20-F, I think all shareholders would like an extended lock-up, and hopefully the company does this,

What you said makes sense, but would be better to be clarified by the IR update. that's basically my suggestion to the NQ. I'm not familar with the definition of insiders, but the stock lockup was originally applied to the company that co-owned by 3 NQ co-founders. Obviously CEO Lin Yu and COO+CFO Shi  are 2 of them and are insiders, but not sure about the other one Xu Zhou.

Well I can't speak for NQ, but I don't expect a public update on the lock-up so I'd think if you need clarification or understanding you can email their investor relations and have them explain it to you. The reason I don't expect an update on this UNTIL the 20-F and earnings are released is because they really can't buy or sell, so any downside that occurs because of Queen Carson saying something (if he was to), or because some blog entry, is 100% baseless. I personally don't want any downside attributed to this topic, so on that end I am with you, but the other side of the equation is that no one can sell, and that's the truth.

If insiders "Could" sell, they sure as hell wouldn't wait until September, they would have done so long ago. I just don't think we should fear insider selling, but you are right on the money that they should address this issue as soon as they legally can sell. Hence, they should extend the lock-up period upon filing the 20-F and earnings.