Huawei Expects to Chalk up Contract Sales of US$11B in 2006

Huawei Technologies Co., Ltd. ("Huawei"), a leader in providing next generation telecommunications network solutions for operators around the world, today announced that it expects full-year contract sales to reach USD 11 billion by the end of 2006. As at 1H2006, Huawei recorded contract sales of USD 5.2 billion, an increase of 29 percent compared to the same period last year. The value of contract sales from international markets reached USD 3.4 billion, an increase of 36 percent over the same period in 2005. The international market represented 65 percent of total contract sales generated in 1H2006.

"Huawei expects to deliver steady and sustainable growth as industry adoption of powerful IP-based technologies, such as IP Multimedia Subsystems (IMS), accelerate the pace of network transformation among operators. With its broad product portfolio based on a shared design platform, Huawei is well positioned to help operators to realize the full potential of their network assets and fulfill their Fixed-Mobile Convergence (FMC) vision," said Dr. Xu Zhijun, Huawei's Executive Vice President and Chief Marketing Officer.

Underscoring Huawei's success with 28 of the world's top 50 operators has been the company's steadfast commitment to customer-centric research and development (R&D) based on open industry technical standards. As of 30 September 2006, Huawei has lodged 16,887 patent applications, of which 2,635 were International Patent Cooperation Treaty (PCT) applications. Huawei has been granted 2,528 patents to date.

As one of the fastest growing partner to world leading telecom operators, Huawei continues to deepen relationships with key customers, such as Telefonica, Vodafone and British Telecom. In the wireless space, Huawei has secured 35 commercial Universal Mobile Telecommunications System (UMTS) contracts to date, scoring deals with operators such as Japan's eMobile to deploy the country's first-ever all IP-based radio-access network; as well as a contract with Administración Nacional de Telecomunicaciones (ANTEL) to construct Latin America's first UMTS network in Uruguay. With the spirit of focusing on the requirements of customers, Huawei provides innovative and customer-oriented solutions to enhance the long-term value and potential growth for customers.

"We are very encouraged by our remarkable progress this year in the international arena. Our comprehensive portfolio of leading solutions and products provides us with a strong competitive edge. Huawei will continue to focus on strengthening partnerships with key multinational operators, as well as explore opportunities for collaboration with industry peers. With our vision to enrich people's life through communications, Huawei is committed to bringing excellent services and innovative technologies across the world," said Dr. Xu.