Convergys Signs First Contract in China; China Unicom Guangdong Selects Convergys Activation Manager to Support Deployment of Provisioning Platform.

Business Editors/High-Tech Writers

CINCINNATI & BEIJING--(BUSINESS WIRE)--July 16, 2003

Convergys Corporation (NYSE:CVG), the global leader in integrated billing, employee care, and customer care services, announced today a contract for its first product deployment in the People's Republic of China.

Convergys is licensing its Activation Manager to China Unicom Guangdong, a provincial operator of China Unicom Ltd. (NYSE:CHU), the second-largest wireless carrier in China, and one of the largest wireless carriers in the world.

Convergys opened an office in Beijing last September to support regional operators such as China Unicom, which is a Beijing-based provider of integrated telecommunications services. China Unicom offers a range of services including cellular, paging, long distance, data, and Internet services, with 61.7 million cellular services subscribers, 16.8 million paging subscribers, and 7.6 million Internet subscribers.

Convergys will integrate its provisioning module with China Unicom Guangdong's incumbent billing platform and support convergent service offerings across 17 different network element types in multiple cities throughout the province. Convergys will also provide recurring maintenance on an annual basis and development to support new network elements and service offerings as they are introduced.

"This contract signals a key step for Convergys in obtaining a foothold in China," said Daniel Longfield, senior industry analyst for OSS and telecom at research firm Frost & Sullivan. "It has established a relationship with a major Chinese client that is one of the world's largest wireless carriers. This will give Convergys an advantage as it builds up its client base in Asia by demonstrating excellence with a market leader like China Unicom."

"We view Convergys' Activation Manager as the best solution for us because it is scalable, flexible, and can be adapted to support new network elements and customer care platforms with limited configuration," said Robert Xiang, Project Director, China Unicom Corporation Limited, Guangdong Branch. "Convergys is an industry leader that has shown it will work with us to reduce our time to market and create a more cost-effective, reliable platform from which to deploy our services."

"We are pleased to bring to China Unicom the same technology, competitive advantage, and world-class service that have made our clients successful worldwide," said Steve Robertson, Convergys' President of Information Management - International. "Our ability to localize our project and software development methodologies and bring our business operations to a Chinese carrier using a Chinese partner reflects our commitment to establish a long-term presence in China."

Convergys works with various Chinese partners in the region. Bright Oceans Inter Telecommunications (BOCO), a leading Chinese telecommunications solutions systems integrator, provided the hardware support and environment configuration for this implementation.

Convergys Activation Manager is an application module that supports integrated voice and data environments with convergent provisioning capabilities while easily integrating with billing systems and networks. Through established application programming interfaces and toolkits, this Convergys module automates flow-through provisioning for converged services and isolates billing systems from the complexity and details of the network. It also supports administration of service provisioning through flexible service definition, network element configuration tools, policy management rules-based transaction generation, automated load balancing across multiple devices and connections, and order prioritization and service activation workflow.

Convergys products are based on its proven and industry-leading Next Generation Framework, a component-based architecture that provides unsurpassed flexibility, investment protection, and support for convergent communication services.

About China Unicom

China United Telecommunications Corporation ("China Unicom") was established on July 19, 1994; at present, China Unicom is the only integrated telecommunications operator in the PRC. After the company was listed on the New York Stock Exchange and the Stock Exchange of Hong Kong in June 2000 respectively, Class A shares were successfully listed in the domestic stock exchange market in October 2002.

China Unicom's main achievements, generally acknowledged by investors and customers, include: possessing a telecommunication base network that ranks second in scale in China; serving the third largest number of mobile telecommunication subscribers in the world; operating the largest radio paging network in the world, and ranking as one of the top large-scale enterprises in China. At the same time, more than 300 branches and 10 subsidiaries have been constructed, covering the 31 provinces, autonomous regions and municipalities and guaranteeing our commitment of "service first" to our customers.

Currently, China Unicom provides a variety of telecommunication services in the most rapidly increasing telecommunication market in the world. Our main business fields include cellular telecommunication (GSM & CDMA), international and domestic long distance, data communication, Internet, IP telephony, local call, radio paging, satellite, and telecom value-added services. These services have embodied the special features of China Unicom as an all-service operator. At the same time, China Telecom has adhered to its business objectives to make these services profitable and competitive in the marketplace.

China Unicom will stick to its development strategy to "establish new offerings, construct new networks, adopt high technology, achieve high growth and develop integrated telecom services." With mobile telecommunication, data communication, international and domestic long distance services as its principal focus, China Unicom will differentiate itself on the strength of its network, technology, and service innovation. While deepening reform, strengthening management, improving service and promoting efficiency, China Unicom will work toward rapidly increasing its competitive market position and continue to stride toward its goal of becoming a top international telecommunication services enterprise.

About Convergys

Convergys Corporation (NYSE:CVG), a member of the S&P 500 and the Forbes' Platinum 400, is the global leader in integrated billing, employee care, and customer care services provided through outsourcing or licensing. We serve top companies in telecommunications, Internet, cable and broadband services, technology, financial services, and other industries in more than 40 countries. We also provide integrated, outsourced, human resource services to leading companies across a broad range of industries.

We bring together world-class resources, software, and expertise to help create valuable relationships between our clients and their customers and their employees. This commitment is validated by the more than 1.5 million individual bills our software produces each day to support more than 120 million subscribers, and by the more than 1.7 million separate customer and employee contacts we manage each day, both live and via electronic interaction.

Convergys(R) employs more than 48,000 people in 48 customer contact centers and in our data centers and other offices in the United States, Canada, Latin America, Europe, the Middle East, and Asia. Convergys is on the net at www.convergys.com, and has world headquarters in Cincinnati.

(Convergys and the Convergys logo are registered trademarks of Convergys Corporation.)

(China Unicom and its logo are trademarks of China Unicom Corporation.)