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[Beijing, China,15 November 2006] Huawei Technologies ("Huawei"), a leader in providing next generation telecommunications network solutions for operators around the world, today announced that it has been selected by Versatel, a German fixed network operator to build its Internet Protocol (IP) and Dense Wavelength Division Multiplexing (DWDM) nationwide networks.

Versatel, a leading fixed network operator in Germany, has embarked on a comprehensive reconstruction and upgrade of its current networks. With a brand new all-IP network, Versatel will be able to rapidly meet demand for the fast expanding new services, such as high-speed xDSL access and multi-media service, amongst others., Versatel has selected Huawei to implement a bearer network solution to fulfill these service requirements.

"As the third largest fixed network operator in Germany, Versatel is providing high quality and comprehensive telecom services to all customers. We are willing to build up strategic partnership with Huawei to fulfill our development demands," said Mr. Peer.Knauer, CEO of Versatel.

"Huawei owns advanced core technologies and rich experiences in current network application. We believe that this cooperation is sure to provide Versatel Next Generation Networks with powerful bearer networks, which will provide higher-quality service experience for our users," said Mr. Cheng Hai, COO of Versatel.

In this bearer network solution, Huawei's WDM series of products were chosen to build the next generation of high-speed WDM links for Versatel. The entire network will use adjustable Optical Transmit Units (OTUs) to provide services for users with quick responses in the future. Meanwhile, Huawei's Quidway NetEngine series of high end routers, known for their high reliability, great expandability, and powerful performance, will effectively improve the network performance to support more services in an economical way.

"Versatel is an important operator in Europe. Huawei is very glad to have this chance to work with Versatel," said Mr. DingShaohua, senior VP of Huawei, "Huawei will share its in-depth understanding of bearer networks and its mature deployment experience with customers. Huawei will also apply its advanced products and professional services to create long-term value for Versatel."

Huawei's continual investment in R&D has contribute significantly to its achievements in the field of bearer networks. To date, Huawei has installed more than 470,000 OptiX optical network products running stably all over the world, and has deployed over 450,000 km WDM networks. Huawei's optical network products ranks No.2 in terms of market share until the first half year of 2006 according to Ovum-RHK. In total, Huawei has 700,000 routers and 1.85 million Ethernet switches widely applied in 93 countries and regions. Huawei has built national backbone IP networks for 49 countries including Britain and Russia. Moreover, Huawei is selected by world leading operators such as BT, KPN, Vodafone as their partner, to provide them with innovative bearer network solutions.


About Versatel:

Versatel is an ambitious telecommunications company on the Dutch and Belgian market. The company has an extensive product portfolio of fixed telephony, data, internet and mobile telephony products. Versatel was founded in 1995 and is publicly traded at Euronext Amsterdam (VRSA).