Huawei Reports H1 Sales

SHENZHEN, China -- Huawei Technologies Co., Ltd. (“Huawei Technologies”) announced its global sales reached RMB 33 billion for 1H 2005, an increase of 85% over last year. Huawei Technologies’ international sales reached USD 2.47 billion, which accounts for 61% of the company’s total sales, has exceeded the overseas sales for 2004. Huawei Technologies has gained 19 new operators plus being included in British Telecom’s 21CN short-list.

Sale of Wireless Products Doubles that of Last Year

The sale of Huawei Technologies’ wireless products has achieved a 120% growth from the corresponding period last year, among which its sale of CDMA in international markets grew by 200%.

Huawei Technologies, through its proprietary R&D and innovation in UMTS, has gained 5% essential patents and ranked the top 5 globally. By 30 June 2005, Huawei Technologies has obtained 11 UMTS commercial contracts. Its HSDPA network and data cards have successfully conducted commercial demo to Telfort of The Netherlands. Huawei Technologies is the first in the world to release, in February 2005, UMTS distributed base stations. These innovative base stations are small-sized and easily installed, which greatly reduces the cost of network construction and enhances the speed of network construction, while strengthening Huawei Technologies’ leading role in the global UMTS market.

In the GSM world, Huawei Technologies has launched 3G-oriented solutions, which fully supports 3G, professional trunking function and professional trunking mobile phones, thus satisfying high-end customers’ requests for dispatching, conference broadcast, emergency call, etc.

In 1H 2005, Huawei Technologies’ GSM mobile Softswitch delivery amounted to 20 million subscribers and served 26 operators in 20 countries. Huawei Technologies’ innovative GSM-T system, the first of its kind in the world, not only complies with China’s national certification, but it was also recognized by 3GPP to become a global standard.

In the CDMA2000 1X and CDMA2000 1xEV-DO markets, Huawei Technologies won big contracts successively in Thailand, Algeria, Bangladesh, Pakistan, Europe and America. The delivery of CDMA in 1H 2005 reached 10 million subscribers. Huawei Technologies’ CDMA2000 1xEV-DO network has been deployed in 10 countries including the United States, Thailand, Mexico, Pakistan and Algeria.

Innovative Solutions are the Driving Force for Sales Increase

Huawei Technologies’ innovative solutions are the driving force for its 85% jump in growth of international sales.

In the areas of NGN, DSLAM and terminals for fixed network, Huawei Technologies’ new products and solutions contributed to the quantum leap of its sales of these products.

For NGN, Huawei Technologies launched NGN solutions based on IMS architecture, ensuring continuous development of and value-adding to fixed network.

In the broadband area, Huawei Technologies launched end-to-end broadband services and solutions such as IPTV and Triple-Play.

For broadband access equipment, Huawei Technologies’ IP DSLAM maintained its No. 1 position in the global market; its ADSL2+ maintained No. 2 position in the global market; and its DSLAM maintained No. 2 position in the global market.

In March, Huawei Technologies successfully launched EchoLife Digital Home solutions, covering home communications, home entertainment, home office and home network management.

In July, Huawei Technologies became one of the Promoter Partners of Digital Life Network Association (DLNA), which is the largest home network standardization organization in the world.

In June, Huawei Technologies globally launched ME60 series multi-service, control network gateway, which is the industry’s first customized carrier-class IP network product, on global basis. This product launch signifies that carrier-class operators are given more liberty to solve problems including QoS for IP network and network security, while promoting the transition of IP network to carrier-class network.

In 1H 2005, Huawei Technologies’ fixed network products have successfully entered into 27 new countries, so far, Huawei Technologies’ fixed network products have been deployed in 97 countries and regions, including the United States, France, Germany, Spain, Portugal and Russia.

Continuously Entering the Markets of Developed Countries

Huawei Technologies’ global sales of optical network have increased by over 300%. It has formed strategic partnerships with world-class operators such as British Telecom of the United Kingdom, KPN Telecom of The Netherlands as well as ORASTELECOM and WARID. Huawei Technologies’ OptiX series optical network equipment has been sold to 22 new countries including The Netherlands, Sweden, Saudi Arabia, Austria, Nigeria, etc.

For data communications, Huawei Technologies has built IP backbone networks and Metro Ethernet networks, riding on its digital products and solutions, in Spain, Columbia, Brazil, Peru, Hungary, India and the United Arab Emirates etc. in this year. Huawei Technologies’ growth rate for digital communications products was over 100%, making it the company with the fastest growth rate in the global digital communications market.

This year, Huawei Technolgies’ application and software products have entered 18 new countries including India’s TATA, Indonesia’s Telkomsel, Sudan Telecom, Thailand’s CAT, Columbia Telecom, Morocco Telecom, etc. In particular, Color Ring Back Tone (“CRBT”) has successfully made its debut in Europe and made in-roads into OPTIMUS market of Portugal.

In 1H 2005, Huawei Technologies’ UMTS handsets and data cards have entered the purchasing list of several major European operators. The company’s sale of CDMA C218 handsets has exceeded 2 million units. Huawei Technologies’ handsets and data cards are being sold in different countries and regions, including Hong Kong, Singapore, Malaysia, Sweden, and Slovenia. In June, Huawei Technologies’ U626 handset won the “Best 3G Mobile Phone” award conferred by Charlton’s Media Group.

Huawei Technologies Co. Ltd.