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March 2, 2004
Siemens, Huawei to jointly develop 3G/TD-SCDMA

CHINA -- To mark the official start of the joint activities for 3G/TD-SCDMA, Siemens Information and Communication Mobile (Siemens mobile) and Huawei Technologies recently signed a contract for the formation of the joint venture (JV). The JV's aim is to promote 3G TD-SCDMA, and develop, manufacture and market the technology, for which both the companies are investing over US $100 million.

Siemens mobile will hold 51 percent and Huawei Technologies 49 percent in the JV. The contract officially launches the joint development activities of Siemens and Huawei. In addition to company headquarters in Beijing, engineers will work on the development of infrastructure products in Shanghai. The Chinese Ministry of Information Industry (MII) had allocated 155 MHz spectrum to TD-SCDMA in October 2002, paving the way for commercial use of the standard in China. Both the companies hope that TD-SCDMA will succeed in the Chinese market and convince operators in other countries to adopt the standard. The aim is to offer the first products of the JV in the coming months and to participate in the official 3G trials with operators set up under the governance of the Ministry of Information Industry (MII) this year.

Lothar Pauly, chief operating officer, Siemens mobile, said: "We are proud to have found in Huawei a partner who shares our vision for TD-SCDMA. Together, we will make the standard a success in China. Siemens aims to become the 3G-market leader in China. With 270 million mobile phone customers today, China is the world's largest mobile communication market and is likely to grow faster than the world market for several years."

Yafang Sun, chairwoman, Huawei Technologies, added: "We are looking forward to working together with Siemens mobile in the future, a leading mobile communications company. The co-operation will drive forward the commercial use of TD-SCDMA. Both companies will optimise their development costs. Huawei works with the top companies in the telecom industry. We develop and supply leading 3G products and solutions worldwide."

Contact:
Huawei Technologies

Tel: +755-2878-0808/9428
Fax: +755-2878-7125
fujun@huawei.com
www.huawei.com









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