SmarTone Appoints Newbridge for Cutting Edge LMDS Solution in Broadband Multimedia Services.

Business Editors

HONG KONG--(BUSINESS WIRE)--March 2, 2000

SmarTone today announced that Newbridge Networks (TSE:NNC.) (NYSE:NN), a leading supplier of wide area networking solutions, has been selected as the Company's supplier of LMDS (local multipoint distribution system) broadband wireless equipment, subsequent to SmarTone's being awarded the local wireless FTNS (fixed telecommunications network services) licence.

According to SmarTone Chief Executive Officer Ian Stone, the U.S. $17 million contract will provide support to SmarTone's first year of broadband service and includes core backbone equipment for broadband switching, as well as the necessary infrastructure to provide the "last mile" wireless access solution. The contract period runs to February 2001.

"This deal," Mr. Stone said, "will enable SmarTone to provide a broad range of quality multimedia services to our customers in most residential and commercial districts all over Hong Kong within a very short time."

Using the Newbridge(r) LMDS solution, SmarTone will be able to rapidly roll out Internet, voice, video and broadband multimedia services. The LMDS solution uses high capacity time division multiple access (TDMA) technology to enable SmarTone to efficiently share bandwidth among several users and cost-effectively address a large variety of customer requirements.

A pioneer in the LMDS market, the Newbridge broadband wireless solution has been selected for commercial deployments and field trials by over 60 customers in the United States, Canada, South America, Asia and Europe. SmarTone has also selected Newbridge to supply the equipment necessary for broadband switching. Using the Newbridge MainStreetXpress(tm) 36170 Multiservices Switch, ATM (asynchronous transfer mode) and radio technologies can be combined and managed under a single network system.

"As we understand, the Newbridge MainStreetXpress 36170 Multiservices Switch is the most flexible and scalable equipment on the market," said Stephen Chau, SmarTone Chief Technology Officer. "It can be easily and effectively configured to be deployed as the core network part or at the network edge to satisfy our requirements at any given time.

"With the Newbridge advanced system design, SmarTone will become the most reliable network with almost unlimited bandwidth," added Mr. Chau.

"Newbridge is looking forward to supplying SmarTone with the most flexible architecture and comprehensive service possible for their customers," said Peter Charbonneau, Vice Chairman of Newbridge Networks. "With the Newbridge solution, SmarTone will be able to work from one single platform to provide a multitude of services to both residential and business customers."

SmarTone was awarded the FTNS licence in January 2000 by the Office of the Telecommunications Authority and the company is on its way to becoming a pre-eminent broadband multimedia communications provider in Hong Kong.

SmarTone is a leading communications services provider in Hong Kong, offering a full range of communications services including mobile voice, wireless data, IDD, Internet and broadband multimedia services.

The Company became the first operator in Asia to introduce a GSM mobile communications network in March 1993. Staying at the forefront of technology, SmarTone has scored many industry firsts -- first in Greater China to conduct field trials for a WCDMA third generation communications system and first in Hong Kong to launch Wireless Application Protocol (WAP) services, which enable mobile phone access to web information. In December 1999, the Company became first in Asia to showcase the broadband services via Local Multipoint Distribution System (LMDS).

SmarTone intends to be a pre-eminent full-service, regional communications provider with a leading edge in technology.

Listed on The Stock Exchange of Hong Kong since October 1996, SmarTone (SEHK: 0315) joined the 33 constituent stocks of the Hang Seng Index in December 1999. SmarTone's major shareholders are Sun Hung Kai Properties (26.43%) and British Telecommunications plc (20%).

Newbridge Networks (NYSE: NN; TSE: NNC) designs, manufactures, markets and services wide area networking solutions for Internet service providers; local, long-distance, and wireless communications companies; cable television carriers; and corporate customers in more than 100 countries. The Company leverages its relationship with Newbridge Affiliate companies and strategic alliances with numerous other networking companies to deliver complete, end-to-end solutions. Newbridge customers include the world's 350 largest telecommunications service providers and more than 10,000 corporations, government organizations and other institutions. Founded in 1986, the Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com.

Newbridge leadership in developing and deploying broadband wireless solutions has been recognized industry-wide through a series of awards, including the International Engineering Consortium (IEC) InfoVision Award in 1998 and 1999 respectively; the Data Communications Magazine 1999 Hot Product Award and Tester's Choice Award.

Newbridge and logo are registered trademarks of Newbridge Networks Corporation.