Zoom Technologies Executed Definitive Agreement With Investors for $10 Million Raise

  Zoom Technologies, Inc. (NASDAQ: ZOOMD) today
announced it has executed definitive agreements with institutional and
accredited investors for a $10 million fundraise in a private placement of
common stock and warrants.

The transaction involves the sale of 2.5 million newly-issued shares of the company's common stock and warrants to purchase an additional 1.25 million shares of the company's common stock at 150% of the purchase price. The amount of shares issued upon closing will be limited to 20% of the company's issued and outstanding shares preceding the closing in accordance with Nasdaq regulations. Accordingly, due to such limitations the Company expects that approximately half of the total proceeds of the private placement will remain in escrow pending shareholder approval of the transaction in accordance with Nasdaq regulations. In addition, the investors in the private placement will receive additional warrants to purchase shares of common stock of the company which are exercisable only in the event that the company fails to meet certain net income targets.

The transaction will close in two traunches. The second traunch requires shareholder approval and a special shareholder meeting is being scheduled in the next 30-45 days. Proceeds from this financing will be used for capacity expansion purposes.

Due to limitations of the public float and SEC Rule 415, a majority of the shares sold in the transaction will be restricted from trading until six months after closing of the transaction when Rule 144 becomes applicable.

Mr. Anthony Chan, Chief Financial Officer of Zoom Technologies stated, "We are extremely pleased, as a newly traded public company, to attract quality institutional investors and execute this transaction. The funds will allow us to add more production lines, expand our capacity and strengthen our position as one of the top ten manufactures of handsets in China's robust mobile phone industry. We are now poised to grow with the rapidly expanding China 3G market, pursue additional projects, and produce mobile products for top tier Chinese mobile phone companies."

Global Hunter Securities acted as sole placement agent in the transaction and was represented by Sichenzia Ross Friedman Ference LLP. Ellenoff Grossman & Schole served as legal advisor to Zoom in the transaction.

This press release does not and shall not constitute an offer to sell or the solicitation of any offer to buy any of the securities. For additional information, please refer to Zoom's current report on Form 8-K to be filed with the Securities and Exchange Commission in conjunction to this transaction.

About Zoom Technologies

Zoom Technologies is a holding company with subsidiaries that engage in the manufacturing, research and development, and sale of electronic and telecommunication products for 3rd generation mobile phones, wireless communication circuitry, and related software products. Zoom Technologies' subsidiary, Jiangsu Leimone, owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for Original Equipment Manufacturer (OEM) customers and also designs and manufactures its own brand of mobile phones under the Leimone brand.

Forward Looking Statements

This release contains forward-looking information relating to Zoom's plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including the risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.

Contacts: Joseph Villalta/Ashleigh Barreto The Ruth Group [phone]/7028 Email Contact Email Contact Media Contact: Jason Rando The Ruth Group 646-536-7025 Email Contact