AsiaInfo Wins Multiple Software Contracts From China Telecom for Broadband Network Build-Out.

Business Editors/High-Tech Writers

BEIJING/SANTA CLARA, Calif.--(BUSINESS WIRE)--July 26, 2001

AsiaInfo Holdings, Inc. (Nasdaq:ASIA), a leading provider of software products and infrastructure solutions for next generation network operators in China, announced today it has won two contracts to support China Telecom to build broadband networks in Heilongjiang and Shandong provinces. The initial phase contracts are valued at more than US$ 2 million in total, 68% of which is for software and services.

Having built broadband metropolitan area networks (MAN) for China Telecom in Beijing, Tianjin, Shanghai and Guangdong, AsiaInfo was again selected to provide network services, billing and customer software (AIOBS) and network management software (AISerBase) to Heilongjiang Telecom and Shandong Telecom for their newly deployed broadband network and services. Heilongjiang and Shandong are two large provinces which have a combined population of over 127 million.

Speed, content and cost have inhibited the Internet from growing faster in China. The expanded bandwidth will significantly speed up data transmission to allow more high end applications and contents transferred over the Internet. It also makes always-on a reality to Chinese consumers and businesses at a very reasonable cost. International Data Company (IDC) reports that there were 4.5 million broadband users in Asia Pacific and the number will reach 60 million by 2004 with majority of the growth from Japan and China. To capture the broadband opportunity, China Telecom started investment in broadband MANs and access networks in 2001. It aims to develop 1.8 million broadband users by the end of 2001.

"Data service market continues to see robust growth and intense competition in China. While carriers are seeking to provide a variety of value-added services to differentiate themselves from competition, broadband services start to gain popularity among end users. We are pleased to be selected by China Telecom to build multiple broadband networks, and are confident that we will be soon recognized by more customers as the leading provider of broadband solutions in China," said Michael Zhao, senior vice president and general manager of Network Solutions at AsiaInfo.

"The successful penetration of AsiaInfo software products into broadband network market reflects the high scalability and flexibility of our products. This paves the way of AsiaInfo's further product dominance in the multi-service convergence market for the next generation telecom infrastructure build-out," commented Steve Zhang, senior vice president and general manager of Software Business Unit at AsiaInfo.

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.

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.