BEIJING -- iSoftStone Holdings Limited ("iSoftStone" NYSE: ISS), a leading China-based IT services provider, today announced that it has entered into a partnership/joint venture ("JV") agreement with Huawei Technologies Co., Ltd. ("Huawei"), a leading global information and communications technology ("ICT") solutions provider.

The JV aims to build a leading IT services provider in the global Technology and Communications ("T&C") industry. In addition to securing a long-term, sizable business account, the combined entity will strengthen iSoftStone's competitive edge in the highly fragmented IT services industry by incorporating Huawei's best practices and leading market position. Through the JV, Huawei retains a long-term, committed IT service partner capable of providing enhanced delivery quality and a deep, qualified talent pool.

The JV will be 75% owned by iSoftStone and 25% owned by Huawei, with registered capital of RMB 100 million. iSoftStone will appoint the JV's CEO, CFO, and COO. Huawei will appoint the JV's Financial Controller and assign two senior executives to oversee the JV's Huawei related business. The JV will officially start operation in January 2013.

As a key contribution to the JV, Huawei will purchase a significant amount of IT services from the JV in the next three years. Huawei will also provide favorable terms in billing rates, payment terms, and profit allocation. As the JV's majority shareholder, iSoftStone will contribute selected technology and communications businesses into the JV, including iSoftstone's existing Huawei related business but excluding iSoftStone's U.S. businesses and other accounts mutually agreed to by iSoftStone and Huawei.

iSoftStone Holdings Ltd.