Baofeng Modern International (HKG:1121) announced that, on February 9 (after trading hours) it entered into a license agreement with F.TV Ltd (FashionTV), pursuant to which FashionTV, an international television channel dedicated to the world of fashion and lifestyle, grants to Baofeng, within a designated territory in Asia which includes mainland China, Hong Kong, Macau and the Philippines, a license to manufacture and distribute "Fashion TV" branded slippers/flip-flops, sandals on an exclusive basis and other casual footwear on a non-exclusive basis.

The license agreement will commence from February 9 and will expire on the fifth anniversary of the earlier of (i) the first day on which the licensed products are used commercially and (ii) 8 July 2012, and will be renewable for an additional period of one year upon expiration.

Under the license agreement, FashionTV also committed to a promotional campaign presenting the licensed products on the FashionTV Channel. In return, Baofeng will pay certain license fees to FashionTV during the course of the license agreement.