China Telecom Selects AsiaInfo Software for Fourth IP Infrastructure Expansion and Broadband Network Build-Out.

Business Editors/High-Tech Writers

BEIJING/SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 17, 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 signed a contract to support Sichuan Telecom, a provincial subsidiary of China Telecom, to further expand its provincial network capacity and build its broadband network.

AsiaInfo has been working with Sichuan Telecom at various phases of its data network build-out, by building, enhancing and optimizing the customer's data infrastructure. This project is the fourth phase expansion of the provincial network, which is expected to triple the current user capacity upon completion. Sichuan Telecom will use AsiaInfo's integration services and software including messaging (AIMC), billing (AIOBS) and network management products (AISerBase).

Under the same contract, AsiaInfo's products and solutions will build broadband network for Sichuan Telecom. Upon the completion of the project, Sichuan will become the seventh provincial subsidiaries of China Telecom that has contracted AsiaInfo to build its broadband network infrastructure, following Beijing, Tianjin, Shanghai, Guangdong, Heilongjiang and Shandong provinces. Sichuan, the third largest province in China, has a population of 83 million.

International Data Corporation (IDC) reports that the number of broadband users in Asia Pacific will reach 60 million by 2004, with majority of the growth from Japan and China. To capitalize on the opportunities of broadband, China Telecom began to invest in broadband MANs (metropolitan area network) and access networks in 2001. It aims to develop 1.8 million broadband users by the end of 2001.

"Despite a global economy slow down, China telecommunications market continues to grow, driven by the ever-increasing user base and tremendous service demand. We are pleased to announce this contract win, which again validates customer recognition of AsiaInfo's software quality and service excellence. The recurring software revenue generated from such license expansions further proves the high scalability of our software business," said James Ding, president and CEO of AsiaInfo. "Moreover, it has demonstrated our solid capability of leveraging existing customer base over new product and service offerings such as the broadband solution."

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. The company's convergent software suite also includes carrier-scale messaging and network management products. AsiaInfo constructs backbone and access networks for China's telecom carriers while providing high-end network solutions, including operations support, network security and service applications such as IP telephony and virtual private networks.

Registered in Delaware, AsiaInfo has served as a chief architect of China's Internet infrastructure since 1995, 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.