Datang Telecom Technology, Santera Systems Sign Multi-Million Dollar Strategic Agreement.

Business Editors & High Tech Writers

Partnership Will Bring Superior Technology, Next-Generation Class 4

and Class 5 Switching to China

Santera Systems Inc., a leading provider of now and next-generation switching solutions, today announced that China-based Datang Telecom Technology Co., Ltd., has chosen Santera as its partner of choice to deliver next-generation switching to Chinese network service providers. The strategic multi-million dollar agreement enables a focus on Class 4 and Class 5 applications specifically for the China market.

Datang has identified SanteraOne as the industry's leading next-generation switching solution and is committed to providing value added marketing and sales to support its entry into the China market. The two companies will work closely to promptly deliver applications specific to the needs of Pacific Rim countries on the industry-unique SanteraOne platform.

"As a result of this partnership, China network service providers will have the very best next-generation switching product for Class 4 and Class 5 services at their disposal," said Shaojun Wei, President of Datang Telecom Technology. "The Chinese telecom industry's migration from circuit- to packet-based networks will be much smoother and more cost effective as a result of our work together."

"Datang brings expertise in technology and a strong local sales and marketing strategy to the table. We're eager to join Datang in meeting all of China's telecom technology challenges and opportunities head-on," said San-qi Li, Chief Technical Officer for Santera. "What's more, Datang's position as a leading telecom equipment provider will accelerate market penetration for both parties."

SanteraOne is a now- and next-generation switching solution that allows carriers to offer both voice and data services at affordable prices to subscribers. Due to its superior scale and density, SanteraOne allows carriers to realize up to a 70-percent reduction in operational costs.

"The Asian market for next generation voice looks very promising," said Kevin Mitchell, Directing Analyst with Infonetics Research. "In some ways, the carriers in Asia will blaze the path to multimedia IP services, ahead of their US counterparts. In the long run, Chinese service providers offer tremendous opportunity to next generation equipment manufacturers."

About Datang Telecom Technology

Datang Telecom Technology Co., Ltd. (Datang), a high-tech modern enterprise, the most energetic member in the field of national information industry, was founded through investment capital and mainly initiated by the China Academy of Te1ecommunications Technology (CATT) of the MPT. Datang has made great contributions for pushing ahead the informationization of national economy and the development of national telecommunication causes.

At present, with a leading power in R&D and technological innovations, Datang is making full use of both its own advantages and the conduction of cooperation to develop large-scale hi-tech industry. In the key field of communications (include voice, router, ATM, optical, mobile, software, micro-electronics, etc.), it has put out a series of advanced products, made a series of important technological breakthroughs with its own IPR and bridged the gap between China and world leading level.

Datang Telecom has adopted a unified marketing approach, establishing market networks and post-sales service teams in 25 offices that serve eight regions of the country, sales and engineering employees has reached more than 1000. Datang has good relationship with all tier 1 carriers in China.

October 21, 1998: Datang issued public shares on the Shanghai Stock Exchange (stock number: 600l 98).

About Santera

Santera Systems Inc., located in Plano, Texas, offers a carrier-class next-generation switch with both trunk and line functionality, enabling true circuit to packet migration. In its core applications of enhanced voice switching, integrated voice and data switching, and voice over broadband, Santera delivers significant capital and operating cost efficiencies of 50 to 70 percent. The founding pioneers of next-generation companies Cascade, Shasta, Ardent, and Arris created Santera Systems in 1998. More information can be obtained at www.santera.com or by calling either 972/461-6300 or toll free 1-866-519-9000.

About SanteraOne

SanteraOne is a carrier-grade integrated voice and data switching solution delivering key applications such as full feature IXC Tandem, Class 4/5, PRI Offload, packet/cell switching and Voice over Broadband (VoB) services all on a single platform. SanteraOne has both circuit (TDM) and packet fabrics and supports all of the regulatory requirements of a legacy system (including LNP, CALEA and E911) enabling a graceful migration from traditional circuit-based networks to next generation packet-based technology such as ATM, Frame Relay & IP. SanteraOne is comprised of the Open Feature Exchange (OFX), which includes a media gateway controller, signaling gateway and an applications server; the SanteraOne Broadband Office Exchange (BoX), which is a high-density media gateway; and the SanteraOne element management system (NetScan) that delivers common GUI-based management of the complete system.