LONDON and SHENZHEN, China -- Marconi Corporation plc (London: MONI and NASDAQ: MRCIY) and Huawei Technologies Co. Ltd. today announced that, as anticipated in the press release of 31 January 2005, they have now signed a mutual distribution agreement.

Under the agreement, which follows the memorandum of understanding signed before, the two companies will resell parts of each other’s product portfolio. Marconi will resell Huawei’s carrier-class data communications products to telco services providers only under an OEM model or other model as agreed by both companies. Huawei will resell Marconi’s microwave radio, including next-generation microwave radio equipment, and associated network services for Huawei’s wireless network projects.

The two companies have agreed to a process wherein they will leverage their respective sales and marketing teams’ capabilities and regional strengths on an account-by-account basis to bring products and support services to as many customers as possible. The partnership will offer customers more flexibility, choice and support. It will also ensure more rapid integration of next-generation technology and products as well as network solutions that are optimised for customers’ businesses.

“Combining our core development strengths with the additional reach and product capabilities of Huawei, coupled with a comprehensive service wrap allows us to address customer needs with a strong and compelling solution for their next-generation networks,” said Marconi Chief Technology and Information Officer Andy Evans. “Both partners will also benefit as it creates new market opportunities for their respective product lines.”

“Following the spirit of the cooperation and agreements the two parties have already achieved, Huawei expects further cooperation with Marconi. We will draw on each party’s strengths to provide customers with more competitive solutions and services,” said Fei Min, Executive Vice President, Huawei Technologies.

Under the agreement, Marconi will resell a full range of Huawei data communications products to telco service providers only, for example, the Quidway NetEngine and AR series. The extended portfolio will complement and augment a suite of data communications products that Marconi currently develops and sells, including the ASX, TNX and BXR multiservice switching and routing platforms.

Marconi will become one of Huawei’s microwave radio partners. Huawei will gain access to Marconi’s trunk and access microwave radio products and services, including its next-generation AXR radio platform and associated network management software. Marconi’s wireless consultancy and professional services have also been officially accredited by Huawei’s Asia Pacific Regional Division.

Marconi and Huawei have already started to pursue joint business opportunities on Huawei’s data communications products and Marconi’s microwave in various regions around the world.

Discussions are also continuing regarding joint product development in several areas which will enable the two companies to enhance their competitive position by leveraging R&D resource and technologies. The initial emphasis will be on developing products that address the global European Telecommunications Standards Institute (ETSI) market. Discussions are also underway for the European accreditation by Huawei of Marconi’s full suite of telco services for both fixed and mobile applications. Details will be communicated once these agreements have been finalised.

Marconi Corp. plc

Huawei Technologies Co. Ltd.