Contracts worth over USD 250 million

China Mobile Communications Corporation (CMCC) and China United Telecommunications Corporation (China Unicom), the two leading GSM operators in China, have commissioned the Siemens Information and Communication Mobile Group (IC Mobile) to further expand their mobile network infrastructure For CMCC, Siemens will extend the GSM networks in the Anhui province and in the Shanghai region and upgrade them to support GPRS. For China Unicom Siemens will expand the GSM network in Heilongjiang province and install prepaid services. In total, the contracts are worth over USD 250 million. For the expansion of CMCC's regional GSM networks, Siemens will provide all necessary network components covering 17 areas of the Anhui Province. Construction for the capacity enhancement will be completed in the fourth quarter of 2001. For an extension in the Shanghai region, Siemens will provide CMCC with new base station systems. The enhancement will be completed in June 2001. Furthermore, Siemens will implement a complete WAP-Gateway system in Shanghai and Guangzhou and upgrade Shanghai CMCC's and Sichuan CMCC's network with GPRS network components for fast mobile Internet services to be completed during the first quarter of 2001. As sole supplier of Intelligent Networks, Siemens will extend China Unicom's nationwide prepaid services - the first in China - to a capacity of 13 million subscribers by the end of this year. At present, the prepaid services are available in 21 provinces and seamless roaming between different provinces was realized last year. In 1999 Siemens in co-operation with China Unicom was the first company to introduce prepaid services to the Chinese market.