MoU for Developing 3G in China

23rd June , 2004

ASIA : China Putian Corporation and Nortel Networks announced the signing of a Memorandum of Understanding (MoU)(a) for cooperation in China on research, development and manufacture of certain 3G equipment and products.

Inset shows one of China Putian's current CDMA Base Station products.

The signing of the MoU took place on the eve of the 2004 Nortel Networks 3G Summit. Xing Wei, president, China Putian and Pascal Debon, president, Wireless Networks, Nortel Networks attended the ceremony.

Under the MoU, the scope of the cooperation will include development work for and manufacture of certain Time Division - Synchronous Code Division Multiple Access (TD-SCDMA) products, as well as manufacture of certain Wideband Code Division Multiple Access (WCDMA) products and solutions. A preparatory working team will be formed to continue discussions on the establishment of a joint venture between the two companies for the cooperation. This relationship is subject to execution of a binding agreement.

This cooperation fits into both companies' strategies to continue to develop leading-edge wireless data solutions for customers in China. It also underscores Nortel Networks commitment to join forces with other leading telecom players in order to leverage resources and expertise and offer the best services to our respective customers.

"As one of the leading 3G suppliers in the world, Nortel Networks has been committed to providing advanced 3G solutions to meet the specific needs of customers in China," Debon said. "The signing of this MoU further demonstrates our capability and commitment in this regard. We are confident that our cooperation with China Putian, a strong player in China's wireless market, will further strengthen the value proposition we can offer our customers in the region."

"As one of China's largest enterprise groups in the electronic and communication equipment sector, China Putian has been a front-runner in the development and commercialization of TD-SCDMA technology and products," said Ms. Xing Wei, president, China Putian Corporation. "The cooperation with Nortel Networks will be an important step towards internationalization for Putian's 3G industry."

Nortel Networks and China Putian have had successful cooperation on projects such as TD-SCDMA field trials sponsored by the China Ministry of Information Industry (MII). This MoU further builds on the strength of that relationship.

TD-SCDMA is a Chinese 3G wireless technology adopted by the International Telecommunication Union (ITU) for the IMT-2000 family of 3G standards.

The 2004 Nortel Networks 3G Summit is focused on demonstrating Nortel Networks cutting edge technology and extensive experience in 3G. The Summit features in-depth presentations, workshops and on-site live demonstrations of 3G wireless solutions and Nortel Networks capabilities in 3G network deployment and radio optimization. Over 200 participants are expected to attend the event.

Nortel Networks was the industry's first supplier with wireless networks operating in all advanced radio technologies, and is the only end-to-end provider of all next generation wireless solutions, combining expertise in GSM/GPRS/EDGE, CDMA2000 1xEV-DO, UMTS, WLAN, and packet core networking.

China Putian is the largest telecom manufacturer in China. Its business scope covers both fixed and mobile communications. Its available communication equipment and terminal products mainly include: mobile communication network equipments and handsets, optical transmission equipment, microwave communication equipment, videophones and IC card payphones, PHS handsets, etc. China Putian has a directorship in and is the incumbent chairman by rotation in China's TD-SCDMA Industry Alliance.

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