Further Success in the Asia Pacific Market: Siemens Wins Another 3 Contracts in China to Deploy Optical Network Equipment

Business Wire, Sept 9, 2002

Business Editors/High Tech Writers

MUNICH, Germany--(BUSINESS WIRE)--Sept. 9, 2002

China Mobile Communication Corporation (CMCC) has awarded 3 major contracts to Siemens IC Networks in order to supply optical network equipment.

CMCC is the largest mobile service provider in China. The contracts have a volume of more than 14 million US Dollar, including after sales services. IC Networks will provide its future-proof TransXpress Infinity MTS 2.0 and SDH (Synchronous Digital Hierarchy) products to be installed in Bejing City and in the Guangdong Province. The Siemens next generation optical systems will improve the bandwidth, scalability, and reliability of the customer's infrastructure network, thus making China Mobile Communication Corporation more competitive. Last year IC Networks delivered already a solution based on TransXpress Infinity MTS with a total length of more than 10,000 km for CMCC's national optical backbone network.

China is one of the most important markets for IC Networks. The market research company RHK recently ranked the Siemens IC Networks optical division as the top player in the Asia-Pacific market in the first quarter of 2002. IC Networks took over the transport market leadership position because of its string of wins especially in China, and traditional strength in markets such as Thailand and Indonesia. To date, Siemens ICN has won already many contracts in China for 10G and DWDM optical solutions, spanning more than 40,000 km.

Background Information

Siemens TransXpress Infinity MTS is a DWDM system of ultra high capacity. It offers 160 channels at 10Gbit/s, a total capacity of 1.6Tbit/s data rates, equal to the total transmission capacity for approximately 20 million telephone connections simultaneously over one fiber. In addition, its re-configurable OADM provides up to 100% add/drop capacity; further a distance of up to 4000 km without regeneration. The automatic gain balance control function of the most sophisticated optical amplifiers ensures constant operation of optical carriers when adding or dropping optical channels. FEC of Transponders and the unique pre- and post-compensation of dispersion enables all these features. The system is very flexible and can be upgraded channel by channel up to 160 channels, without any effects to existing traffic. Multiplexing Transponders allow 2.5Gbit/s services over 10Gbit/s channels to extend the total capacity of the optical layer.

Glossary:
DWDM: Dense Wavelength Division Multiplexing
OADM: Optical Add Drop Multiplexer
FEC: Forward Error Correction
SDH: Synchronous Digital Hierarchy

China Mobile Communication Corporation (CMCC), as a state-backbone enterprise newly built according to the arrangement and requirement of the national telecom restructuring, was founded on April 20, 2000, under the communications industry management of the Ministry of Information Industry. CMCC has set up exclusively self-funded subsidiaries in 10 provinces (autonomous regions and municipalities) and fully owns China Mobile Group (Hong Kong) Co. Ltd. China Mobile (Hong Kong) Co. Ltd., which has established exclusively self-funded subsidiaries in 21 provinces (autonomous regions and municipalities) in China, and has been listed in Hong Kong and New York, acts as held company of China Mobile Group (Hong Kong) Co. Ltd. In 2001, CMCC was picked up by US Fortune into the Global 500 for the first time at position of 336. One year later, CMCC was ranked up to No. 287 with revenue more than USD 17.4 billion; the profit was over USD 2.6 billion, which was 15.7% or 25.8% higher than each last year. Now, CMCC has 87000 employees and put in place an integrated communications network offering large coverage, diversified services, and high communications quality.

Siemens Information and Communication Networks (IC Networks) is a leading provider of network technology for enterprises, carriers and service providers. Its comprehensive portfolio comprises IP-based convergence solutions for voice and data (HiPath for enterprises, SURPASS for carriers), a full range of solutions for broadband access, and optical transport networks (TransXpress). The Siemens Group thus provides complete solutions from a single source for the infrastructure of the Next Generation Network -- optimized for a prompt return on investment and to open up new business opportunities for customers. In fiscal 2001 (year-end 30 September) IC Networks employed 51,000 people worldwide and posted sales of EUR 12.9 billion.

Further information about IC Networks is available at: http://www.siemens.com/networks

This press release contains forward-looking statements based on beliefs of Siemens' management. Such statements reflect the company's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Siemens does not intend or assume any obligation to update these forward-looking statements.