Huawei Says It's No. 2 in DSL

SHENZHEN, China -- Huawei Technologies, announced that the company was ranked No.2, taking up 17.5% market share in the global DSL shipments for Q2 2003. As of August, Huawei has installed 5.2 million ports of SmartAX DSLAM in more than 25 countries and regions throughout the world, including Brazil, China, Hong Kong, Russia, Singapore, Saudi Arabia, Thailand, and USA. Since incumbents and competitive providers across the world are re-focusing their activities to take advantage of the broadband market using DSL technology, DSL technology has developed very fast over the past years. According to Gartner, within the DSLAM market, Alcatel was the leader with 31.9 percent of port shipments, followed by Huawei, 17.5 percent; UTStarcom, 8.1 percent; Siemens, 7.3 percent; and NEC, 7 percent. The recent survey also predicts that DSL equipment shipment growth will continue for the next few quarters. While Alcatel is clearly the market leader, Huawei was able to quickly move into the No. 2 spot from No.3 spot, largely because of its leadership in price and performance ratio and massive installations featuring with its customized solutions and reliable products. Since the global launch of SmartAX series DSLAMS with features of "Smart access, Smart test, Smart service, and Smart management", the concept has been quickly recognized by worldwide operators and become increasingly popular with its installed lines exceeding 5 million lines. Over the past two months Huawei has signed two significant ADSL contracts respectively with China Telecom, 1 million ports, and China Netcom, nearly 1 million ports, both holding the largest market share in the two international bidding projects. Whatever will happen in the DSL market Huawei will continued its strong commitment to leveraging its customized products and cost-effective solutions to cut costs and boost revenues in the DSL market for various operators worldwide, big or small. Gartner further predicts that the year 2003 will see 20 million more lines of DSLAM around the globe.

Huawei Technologies Co. Ltd.

Gartner Inc.