Brief Introduction to Datang Telecom Technology & Industry Group

May, 2006

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Table of Contents

I. Basic InformationII. Key Industries

1.TD-SCDMA2. SCDMA3. Microelectronics

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I. Basic InformationEstablished in 2001, Datang Telecom Technology & Industry Group is one of the largest high-tech enterprises in China’s information industry, which is dedicated in the R&D, production and sales of communication system and equipments.

CATT (China Academy of Telecommunications Technology), the parent company of Datang, is the largest research entity of telecom technology in China with 49 years experience.

Datang has today 8 research institutes and 5 companies, two of which are listed companies;Datang has nearly 10,000 employees, with engineering techniciansabove 70 percent.

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I.Basic Information

5 manufacturing bases in Beijing,Chongqing, Xi’an, Shanghai and Chengdu

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Table of Contents

I. Basic InformationII. Key Industries

1.TD-SCDMA2. SCDMA3. Microelectronics

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Table of Contents

1.TD-SCDMA2. SCDMA3. Microelectronics

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TD-SCDMA: A MilestoneIn 1998, representing China, CATT submitted an innovational proposal: TD-SCDMA to ITU for 3G mobile communication; in 2000, ITU approved TD-SCDMA as one of the three international standards of 3G. Then 3GPP also accepted TD-SCDMA. TD-SCDMA adopts high-edged technologies such as Smart Antenna, Software Radio, Joint Detection, Banton Handover, High-speed Transmission technology for Downlink Packet Data, having obvious technical and economical advantages: high spectrum efficiency, high capacity, strong professional competence, and low cost, etc.TD-SCDMA industry presents a great market potential and a bright developing prospect. It is estimated that merely in China, TD-SCDMA will have a market scale of 300 billion CNY from 2006 to 2010.

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TD-SCDMA Industry Development

In order to speed up the development process of TD-SCDMA system, Datang Group insists the development thoughts of extensive cooperation with manufactories in various fields at home and abroad. In the forms of industry alliance, it pushes forwardthe comprehensive development of TD-SCDMA technology and plays an important role in series of TD-SCDMA technological tests.

It is indicated by many national organized specific tests that TD-SCDMA is completely provided with the capacity of independently constructing network.

With more and more manufacturers at home and abroad join this industry alliance, TD-SCDMA industry chain has been formulated. The commercial system equipment’s maturation and the breakthrough of terminal equipment and terminal chip signifythe maturation of TD-SCDMA industry.

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TD-SCDMA Industry Chain

Chipset

CN

RAN

UE

Others

Mature industry platform is mandatory for operation

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DT Position within Industry

Datang involved in the whole TD-SCDMA industry chain to push to create the industry platform

Chipset manufacturesCN providers

RAN manufactures

Datang Mobile

UE and chipset manufactures

TD-SCDMA testing Instruments providers

Technology License

SolutionsTechnology License

Joint Lab/solution

T3G, Commit, Jiazai

Investment

Joint R&D

OperatorsSolutions

Alcatel, JIazaiContract Manufacturing

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Table of Contents

1.TD-SCDMA2. SCDMA3. Microelectronics

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SCDMA

Datang SCDMA, a new generation of integrated wireless access technology platform in leading level of the world, possesses many independent IPRs and adopts many key technologies like smart antenna, software defined radio, synchronous uplink.

Comparing with other wireless access technology, SCDMA outstandswith its features in spectrum efficiency, cost and flexibility.

SCDMA is recommended as the priority telecommunication equipment for popularization service in countryside by Chinese Ministry of Information Industry.

Up to now, SCDMA products have been widely applied in China’s 116 cities of 21 provinces, and run by constructing net in large scale in Sri Lanka, South Africa, and Mongolia.

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Table of Contents

1.TD-SCDMA2. SCDMA3. Microelectronics

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Integral Strength of DatangMicroelectronics

Datang is the only company in China which can design and produce telephone IC card, SIM card for GSM handset and UIM card for CDMA handset.■Datang boasts the largest and most advanced IC Card module production line which can produce various IC card modules of different specifications and techniques. ■Main products: mobile communication IC card, public communication IC card, China’s 2G ID Card, SOC chipset platform, and visual telephone.

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Products and TechnologyAdvantages in SIM Card

■To provide China’s first home-made SIM cards for GSM, UIM cards for CDMA to the market, with our own independent IPRs. ■To introduce OTA and high-capacity super number directory technologies with independent IPRs.■To firstly realize the large-scale commercialization of dynamic air-downloaded STK service.■Take the lead in becoming the integrate circuit enterprise with annual production value above 100 million in China.

■Consistently keep the development of terminal chipsets for SCDMA and TD-SCDMA.

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Summary

Innovationis the source of core competitiveness for the development of the enterprise is the ceaseless dynamics for the progress of the enterprise

DATANG Groupwill take an open-minded attitude, perseveringly carry forward our advantages in technological development will keep creativity and promote cooperation to make contribution for the progress of world information industry

Thank you !