AsiaInfo Announces Closing of Pacific Software Asset Acquisition; Newly Acquired Business Wins Human Resource Management Solution Contract from Air China.

Business Editors/High-Tech Writers

BEIJING & SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 4, 2003

AsiaInfo Holdings, Inc. (Nasdaq:ASIA), a leading provider of telecom network and software solutions in China, today announced the closing of its acquisition of US$9.0 million in Human Resource Management (HRM) and Business Intelligence (BI) assets from Pacific Software (China) Limited. The company also announced the signing of an HRM solution contract between Pacific Software and Air China, a leading airline company in China. The total contract is valued at US$1 million, of which 100% is for software and services.

The new contract is for the first phase of construction of Air China's computerized HRM system, providing Air China with a highly functional and efficient system that will enable the accurate, timely and standardized capturing, storage, analysis and maintenance of all HR-related information. A key component of Air China's enterprise management system, the HRM software solution is also capable of facilitating all key HR management functions; from basic data collection, filing, analysis and reporting, to performance review and salary/incentives management, to organization development management. In particular, as with most other Chinese large-scale and State Owned Enterprises (SOEs), the system will support Air China's human resource management along government requirements and in compliance with domestic labor laws on pension, housing and insurance, as well as management of promotion systems for skilled workers based on numerous state-administered tests.

With 23,000 employees throughout its nationwide offices, Air China had business revenue of US$2.8 billion in 2002, and is a major player in China's airline industry. The company had previously contracted Pacific Software to deploy its BI solutions.

"We are very pleased with this strategic contract win on HRM solution with Air China," Xingsheng Zhang, AsiaInfo's President and Chief Executive Officer, commented. "As we predicted earlier, our new HRM and BI assets are quickly bringing us important contract wins, as could be expected from Pacific Software's high profile client base and unique competitive advantages. This contract gain demonstrates our determination and capability to quickly take advantage of the very promising and rapidly growing HRM and BI markets."

Mr. Zhang continued, "The contract also reinforces our business relationship with Air China, a strategic client outside our traditional telecom customers, and provides good potential to cross-market our products and services. With all the progress and success we are achieving in offering software and solutions to the telecom and other industries, we are fully confident that our strategy of providing total customer solutions is the right choice, and will bring benefits to our company and our customers in our future development."

About AsiaInfo Holdings, Inc.

AsiaInfo Holdings, Inc. (Nasdaq: ASIA) is a leading provider of high-quality software and solutions in China. The company provides total customer solutions to some of China's largest companies, and helps its customers to increase their business value in fast-growing and evolving markets. AsiaInfo's products and services cover telecom network infrastructure and application services, encompassing messaging, broadband and wireless; customer relationship management (CRM) and billing solutions; decision support systems; business intelligence (BI); and human resource management (HRM).

Organized as a Delaware corporation, AsiaInfo began in 1995 as the constructor of national backbones and provincial access networks for all of China's major national telecom carriers, including China Telecom, China Mobile, China Unicom and China Netcom. After its acquisition of OSS vendor Bonson in 2002, and HRM and BI software provider Pacific Software in 2003, the company has successfully leveraged its strengths as a IT systems integrator and telecom software solution provider, to offer a full suite of IT services to a broad range of customers.

For more information about AsiaInfo, please visit http:/www.asiainfo.com.

The information contained in this documents is as of Dec. 4, 2003. AsiaInfo assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments.

This document contains forward-looking information about AsiaInfo's operating results and business prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: government telecommunications infrastructure and budgetary policy in China; our ability to maintain our concentrated customer base; the long and variable cycles for our products and services that can cause our revenues and operating results to vary significantly from period to period; our ability to meet our working capital requirements; our ability to retain our executive officers; our ability to attract and retain skilled personnel; potential liabilities we are exposed to because we extend warranties to our customers; risks associated with cost overruns and delays; our ability to develop or acquire new products or enhancements to our software products that are marketable on a timely and cost-effective basis; our ability to adequately protect our proprietary rights; the competitive nature of the markets we operate in; political and economic policies of the Chinese government. A further list and description of these risks, uncertainties, and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2002, and in our periodic reports on Forms 10-Q and 8-K (if any) filed with the United States Securities and Exchange Commission and available at www.sec.gov.