SHENZHEN, China -- Comtech Group, Inc. (Nasdaq: COGO - News), a leading provider of customized module design solutions, today announced that it has further expanded its existing relationship with Huawei, where Comtech has received new orders to supply PSTN and Broadband solutions to Huawei. This contract provides Comtech with approximately USD$10 million in revenue which will represent only a portion of the business and service Comtech provides for Huawei. This new contract consists of 15 months worth of orders which will begin this month and continue until December 2006.

"We are pleased to expand upon our already long-term and mutually beneficial relationship with Huawei and this order will ensure our revenues in 2006 from this important customer shall increase significantly compared to 2005," commented Jeffrey Kang, Chairman and Chief Executive Officer of Comtech. "This $10 million order is only related to PSTN and Broadband products as we also have business and receive revenue from Huawei in several other areas such as datacom and wireless which are incremental to this order. In particular, datacom and wireless are targeted growth areas for Huawei and subsequently we expect our business in these areas will continue to grow as well. The structure of this contract provides management with enhanced visibility into 2006 and ensures Comtech will have access to the fastest growing telecommunications markets. We have become a trusted supplier to Huawei and we anticipate further growth in our business as we look to leverage the relationship."

Comtech Group Inc.

Huawei Technologies Co. Ltd.