AsiaInfo Reports First Quarter Results; High-Margin Software and Services Continues to Drive Operating Profitability.

Business Editors

BEIJING & SANTA CLARA, Calif.--(BUSINESS WIRE)--April 24, 2002

AsiaInfo Holdings, Inc. (Nasdaq:ASIA), a leading provider of telecom network integration and software solutions in China, today announced first quarter results for the period ended March 31, 2002.

Illustrating the company's transformation into a total telecommunications software solutions provider, AsiaInfo continued to see the benefits of its focus on high-margin software and services this quarter, posting higher than expected operating profit of US$1.1 million, significantly higher than the company's loss of US$23,000 a year ago.

Net income reached US$1.4 million, or US$0.03 per basic share, 3% of which was contributed by the acquisition of Bonson Information Technology (Bonson), the wireless OSS solution company that AsiaInfo recently acquired. Net income for first quarter 2002 remained flat, compared to last year's figure. However, the quality of this quarter's net income was materially improved, with over 60% of this quarter's net income generated from operations, compared to 100% of net income generated by interest income in the same period a year ago.

Net revenue (total revenue net of hardware costs) reached US$17.1 million, a 20% increase over the year-ago period. Bonson acquisition contributed 12% to first quarter's total net revenue and 13% to software solution revenue. Total software revenue was US$6.8 million, a 16% increase over the period a year ago and a 4% increase over last quarter's software revenue of US$6.5 million.

At the end of the first quarter, net revenue backlog was US$51.4 million, which was a 16% increase over the period a year ago and remained flat sequentially despite a traditionally slow first quarter due to the long Chinese holidays. Software solutions accounted for 50% of net revenue backlog, representing a 72% increase over the period a year ago and an 11% increase sequentially. This net revenue backlog provides the company with solid revenue and profit visibility. Boson acquisition contributed 27% to the first quarter's total net revenue backlog and 31% to first quarter's software solution backlog.

James Ding, chief executive officer and president of AsiaInfo commented, "We are very pleased with AsiaInfo's results this quarter. Despite the typical slow seasonality of the quarter due to Chinese New Year combined with the ongoing impact of the China telecom industry restructuring, we continued to see the positive impact of our long-term strategy as a full service telecom provider. We are seeing particular interest in software solutions and value-added services, which continues to strengthen our profitability. Our recent acquisition of Bonson, for example, which confirmed our position as a clear leader in telecom operation support system (OSS) solutions, makes us particularly well situated to take advantage of growing opportunities in this market segment."

Ding continued, "With the telecom reorganization now almost behind us, and the strong growth in the Chinese telecom market overall, we expect a pick up in telecom investment in the second quarter and increasing momentum in the second half of the year."

Bonson Acquisition

AsiaInfo's acquisition of Bonson Information Technology officially closed on February 6th. The integration of Bonson into AsiaInfo's operations is proceeding ahead of schedule and is expected to be complete by the end of the second quarter.

New Contract Wins

During the first quarter, AsiaInfo announced a number of new contacts demonstrating particular interest in OSS systems and customer relationship software and services. Some highlights include:

-- Three contracts from China Netcom and two of its provincial subsidiaries to
provide billing software solutions,

-- A contract from China Mobile subsidiary, Guangxi Mobile, and Bonson to
provide its integrated operation support system (OSS) solution,

-- A contract with China Railcom to design and implement its national IP
backbone, expanding network coverage from 30 cities (nodes) to 128 cities
(nodes),

-- A contract with Shanghai Mobile to build its provincial data network and
provide AsiaInfo's customer care and billing (CC&B) software,

-- A contract to provide Shanxi Mobile, a provincial subsidiary of China
Mobile, with AsiaInfo's newly developed network optimization software,
AIVelosurf.

Business Outlook

The following outlook statements are based on current expectations. These statements are forward looking, and actual results may differ materially.

The company expects net revenue for the second quarter of 2002 to be between US$19.5 - 20.0 million, representing a year-over-year growth rate of 20%. Software solution revenue will reach US$8.5 - 9.0 million, representing 42 - 44 % of total net revenue.

Operating income is expected to be US$3.5 - 4.0 million, representing a year-over-year growth rate of more than 100%.

Net income is expected to be about US$3.0 - 3.5 million, or $0.07 - 0.08 per basic share.

                        ASIAINFO HOLDINGS, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Amounts in thousands of US$)

                                          Three Months Ended March 31
                                             2002           2001
                                           AsiaInfo   AsiaInfo without
                                                           Bonson

Revenues:
  Network solutions                          21,731           29,909
  Software solutions                          6,806            5,870
Total revenues                               28,537           35,779

Cost of revenues:
  Network solutions                          15,253           23,644
  Software solutions                          1,996              856
Total cost of revenues                       17,249           24,500

Gross profit                                 11,288           11,279

Operating expenses:
  Sales and marketing                         3,568            5,627
  General and administrative                  3,545            3,606
  Research and development                    2,264            1,632
  Amortization of deferred
    stock compensation                          153              437
  In Process research and development           350
  Amortization of intangible assets             318
Total operating expenses                     10,198           11,302

(Loss) income from operations                 1,090              -23

Other income (expenses):
  Interest income                               734            2,386
  Interest expense                              -44             -327
  Other income, net                               1               -7
Total other income, net                         691            2,052

Income before income
 taxes, minority interests                    1,781            2,029
 and equity in loss of affiliated

Income tax expense                              267              471
Minority interests                               35             -179
Equity in loss of affiliate                    -127                -

Net (loss) income                             1,422            1,379

Net (loss) income per share
  Basic                                        0.03             0.03
  Diluted                                      0.03             0.03
Shares used in computation
  Basic                                  42,430,509       40,967,627
  Diluted                                45,884,452       45,148,897

Segment information
  Network solutions net of
   hardware cost                             10,268            8,336
  Software solutions                          6,806            5,870
  Consolidated revenues net
   of hardware cost                          17,074           14,206
  Consolidated cost of sales net of
   hardware cost                              5,786            2,927
  Consolidated gross margin                  11,288           11,279

    Note: AsiaInfo started to consolidate Bonson's financials on
February 6, 2002. In Q1 2002, Bonson acquisition contributed 12% to
AsiaInfo's net revenue, 6% to the company's operating income, 3% to
the company's net income (due to allocation of US$ 0.6 million
intangible assets), and $0.00 EPS contribution.


                        ASIAINFO HOLDINGS, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                           (Amounts in US$)

                                       Mar. 31, 2002    Dec. 31, 2001
                                         AsiaInfo     AsiaInfo without
                                                            Bonson
ASSETS

Current Assets:
    Cash and cash equivalents           107,620,054      110,634,635
    Restricted cash                      16,108,670       13,474,945
    Short term investments               18,641,720       27,184,487
    Accounts receivable, trade           82,065,831       66,723,537
     (net of allowance for
     doubtful accounts of $1,093,582
     and $2,406,662 at December 31,
     2001 and March 31, 2002 respectively)
    Inventories                           3,368,310        1,180,160
    Other current assets                 11,547,290       13,638,312
Total current assets                    239,351,875      232,836,076

    Property, plant, and equipment-net    5,936,046        5,375,519
    Investment in affiliate               5,144,785        5,272,066
    Other assets                         42,849,674        2,375,877
Total assets                            293,282,380      245,859,537

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
    Short-term bank loans                 2,730,326        2,923,906
    Accounts payable                     22,174,559       23,789,295
    Accrued employee benefit              9,896,221        9,088,443
    Deferred Revenue                      7,259,962        4,279,272
    Income Taxes payable                  5,034,002        4,743,019
    Other Taxes payable                   3,626,672        2,523,839
    Other current liabilities            36,457,674       13,112,294
Total current liabilities                87,179,416       60,460,068

    Deferred income tax liabilities         409,654
Total liabilities                        87,589,070       60,460,068

Minority interest                           574,196          609,475

Stockholders' Equity:
    Common stock, 50,000,000 shares         426,639          421,328
     authorized; $0.01 par value, shares
     issued and outstanding: December 31,
     2001 42,132,818; March 31 ,2002
     42,663,941
    Additional paid-in capital          197,382,609      178,649,268
    Deferred stock compensation           (359,582)        (512,071)
    Retained earnings
     (accumulated deficit)                7,625,108        6,203,313
    Accumulated other comprehensive
     income (loss)                           44,340           28,156

Total stockholders' equity              205,119,114      184,789,994
Total Liabilities and
 Stockholders' Equity                   293,282,380      245,859,537

      Note: As of March 31, 2002, Bonson acquisition contributed US$7.8
million in account receivables, US$2 million in inventory, US$37
million in goodwill, US$6 million in intangible assets and US$21
million in accounts payable to Bonson's shareholders.

First Quarter Conference Call

AsiaInfo will host a conference call to discuss its first quarter results at 5:00 p.m. Pacific Time / 8:00 p.m. Eastern Time (Beijing/Hong Kong Time: April 25, 2002 at 8:00 a.m.). The management team will be on the call to discuss results and highlights of the quarter, and answer questions. The dial-in number for the call is 973/872-3100.

A replay will be available by dialing 877/519-4471 for US callers or 973/341-3080 for international callers with a personal identification number (PIN) of 3194983 between 5:00 p.m. Pacific Time on April 24, 2002 until 5:00 p.m. Pacific Time on May 24, 2002.

Live and archived web casts of this call also will be available on the Investor Relations section of the AsiaInfo web site at www.asiainfo.com.

About AsiaInfo Holdings, Inc.

AsiaInfo Holdings, Inc. (Nasdaq:ASIA) is a leading provider of telecom network integration and software solutions in China. The company provides high-quality software and solutions to China's telecom carriers, meeting the demanding needs of a fast-growing industry.

The company's three strategic business units -- Network Infrastructure, Operation Support Systems and Service Applications -- offer a full-range of front- and back-end telecom software solutions. AsiaInfo's products and services cover network infrastructure services including design, implementation, operation and optimization, customer management and billing solution; decision support system; and service applications encompassing messaging, broadband, wireless and other advanced applications.

A Delaware-registered company, AsiaInfo has constructed national backbones and provincial access networks for all of China's major national telecom carriers since 1995, including China Telecom, China Mobile, China Unicom and China Netcom. Since 2000, the company has successfully shifted its focus from Internet infrastructure construction to the provision of a full suite of telecom software solutions.

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.