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180% year-on-year contract sales growth reaches USD1.29 billion in 2005

Introduces new suite of products including Datacomm, 3G handsets,
HSDPA USB Modem Card and Videoconferencing Solutions
at CommunicAsia2006 in Singapore

[COMMUNICASIA 2006, SINGAPORE – 21 June 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 contract sales in Asia Pacific to grow by 55 percent to hit USD2 billion in 2006.

The company announced that its contract sales in Asia, excluding China, Japan South Korea, Taiwan and Hong Kong, is expected to jump to more than US$2 billion this year from $1.29 billion in 2005 as it continues to focus on further deepening its relationship with existing and potential key customers in the region.

Huawei has been steadily expanding its operations outside of China since 1996 and has a presence in 13 countries across Asia Pacific, with its products deployed in over 20 countries in the region. In 2005, the company's global international sales hit US$4.8 billion, which exceeded domestic sales for the first time, accounting for 57 percent of its total contract sales of US$8.2 billion. This trend is expected to continue as part of Huawei's internationalization strategy and Asia Pacific remains one of the most important markets as Huawei expands globally.

"With our vision to enrich people's life through communications, Huawei is committed to bringing excellent services and innovative technologies to the Asia-Pacific market," said Mr. Liu Jianfeng, Vice-president, Huawei Technologies Asia Pacific. "Asia Pacific is one of the fastest growing regions in the world for us and we remain committed to this region through continued investments in the areas of R&D and customer-centric product development. We currently work with over 150 Asian telecom operators and believe that our broad and comprehensive portfolio of leading solutions and products provides us with a strong competitive edge."


Next Generation Networks a Key Growth Strategy for Asia Pacific

Huawei sees the future drivers of its business as being next-generation networks (NGN) for both fixed and wireless carriers. The company has made significant traction in this area as evidenced by its contract wins with the likes of TT&T in Thailand, TM & TIME in Malaysia, PTCL & TELIPS in Pakistan and JTB in Brunei. Huawei also won four 3G contracts in Asia Pacific, including B-Mobile in Brunei, Celecom in Malaysia, NTS in Indonesia and Econet in New Zealand. With convergence being a key development in the telecommunications industry, Huawei recognizes that operators are increasingly looking for vendors that have a comprehensive, end-to-end portfolio of products and solutions. This continues to be a key strength and unique offering that Huawei offers to carriers.

Mr. Liu added, "As we continue to deliver even more efficient and responsive services as well as customized products and solutions to our customers, Asia Pacific not only represents a market opportunity but also serves as an important resource base. To date, 68 percent of our 2,200 employees in Asia Pacific are local hires, excluding the over 1000 local engineers based at our R&D institute in Bangalore, India."


Global Launch of New Datacomm Products, 3G Handsets & Videoconferencing Solutions

At CommunicAsia 2006, Huawei introduced an integrated video and audio conferencing system solution designed specifically to enhance the business competitiveness of small and medium enterprises (SMBs). The new solutions include Huawei's high definition group video terminals ViewPoint8066 and ViewPoint8033, videophone ViewPoint8220 and ViewPoint8210, which incorporate built-in Multipoint Control Unit (MCU) functions that reduces operational costs for SMBs.

In the area of wireless terminals, Huawei launched the world's smallest HSDPA USB modem E220 and also introduced two new 3G UMTS dual mode handsets - U528, U526 and five CDMA 2000 1x mobile phones Handsets - C5300, C3300, C2285, C2281, C2205. To date, Huawei supplies 3G terminal products to customers in over 70 countries including China, Sweden, Portugal, Russia, India, Brazil, UK, Italy, Spain, France and Hong Kong.