AsiaInfo's Network Management Software Selected for Liaoning Telecom Provincial Network Expansion; MarSec Expands Its Influence in Network Security Market.

Business Editors/High-Tech Writers

BEIJING & SANTA CLARA, Calif.--(BUSINESS WIRE)--May 23, 2001

AsiaInfo Holdings, Inc. (Nasdaq:ASIA), a leading provider of software products and infrastructure solutions for next generation network operators in China, announced today that it has signed a contract to provide Liaoning Telecom, a provincial subsidiary of China Telecom, with its network management solution and network security services. The contract is valued at over US$1 million in total. A separate contract was also sealed to provide security services to Chongqing's broadband municipal network.

Having previously selected AsiaInfo's messaging and billing software products for its Phase IV provincial network expansion, Liaoning Telecom again chose AsiaInfo to offer high-end software and solutions. MarSec, a network security services provider with its majority owned by AsiaInfo, will supply Liaoning Telecom with security system auditing, design and implementation services.

MarSec's growing position in China's network security market was bolstered by another recent win. Chongqing Broadband Network Co. Ltd, an Internet broadband services provider, will deploy MarSec's full spectrum of security services. This contract lays a solid foundation for MarSec to further promote its services in the broadband network arena.

Michael Zhao, Senior Vice President and General Manager of Network Solutions at AsiaInfo, commented "With the increasing demand of high-end network technology, AsiaInfo is in a good position to grow its communications solutions and software business by leveraging the large existing customer base. These two contracts again demonstrate the successful execution on our strategy of moving up the value chain to provide value-added solutions such as security services, operation support systems and wireless solutions. Furthermore, broadband technology is gaining more attention from China's telecom carriers. Our research and development efforts have further strengthened our capability in assisting our clients with broadband network build-out."

About AsiaInfo Holdings, Inc.

AsiaInfo Holdings, Inc. (Nasdaq:ASIA) is a leading provider of software products and infrastructure solutions for next generation network operators in China. The company offers telecommunications service providers total network solutions and develops proprietary software for Internet service providers, Internet content providers and telecommunications service providers.

Its customer management and billing software products meet the complex, mission-critical provisioning, accounting, reporting and marketing needs of Internet and telecommunications service providers. In addition, the company supplies carrier-scale messaging products to Internet service providers in China.

Since it moved its operations from the US to China in 1995, AsiaInfo has served as a chief architect of China's Internet infrastructure, crafting Internet backbones for all the major national carriers including China Telecom, China Mobile, China Unicom, and China Netcom. For more information about AsiaInfo, please visit http://www.asiainfo.com.

The statements in this news release contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk factors that could affect AsiaInfo's results of operation are detailed in AsiaInfo's registration statement, as filed with the Securities and Exchange Commission. A copy of the registration statement, including exhibits, may be reviewed at the Commission's public reference room at Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549. The registration statement and other company filings can also be reviewed by accessing the Commission's Internet site at http://www.sec.gov, which contains reports, proxy and information statements and other information regarding registrants that file electronically with the Commission.