[Hong Kong, February 12, 2001] Vodatel Networks Holdings Limited (8033) today announced the interim results ended 31 December 2000 for fiscal year 2001. The company recorded HK$35.8 million of profit for the 6-month period from July to December, a 20.1% increase compared to the same period last year, while total turnover rose 25.6% to HK$262.5 million. Profit in the second quarter recorded a growth of 31.5%, reaching HK$23.3 million while turnover was HK$182.5 million, up 35.9% from the same period a year ago.

Satisfactory growth in business achieved especially in the second quarter has been the result of a number of network infrastructure projects obtained in the PRC. Below are some of the signed contracts and projects in progress with total value of HK$210 million:

1. HK$32.7 million contract of Jiaxing IP Metropolitan Network construction with China Telecom Zhejiang Corporation Jiaxing Branch in enhancing the intelligent residential management system and promoting the e-commerce business to the enterprises in the PRC.

2. Integrated Access Backbone Network project awarded by Jiangsu China Unicom.

3. Installation of VodaImage, a customer resources management system developed by Vodatel, to Shenzhen China Mobile. Shenzhen China Mobile's 1.9 million customers' data records will be digitized and available for updating and retrieving.

4. HK$17.7 million Digital Data Network expansion contract awarded by China Telecom Guizhou Corporation and Jiangxi China Telecom Corporation.

5. HK$138.6 million contract for the Guangdong Provincial Digital Data Network and Broadband Network Integration and Expansion, which will become the largest Integrated Network in the PRC on completion.

6. Commercial Video Conferencing System will be implemented in 24 cities of Guangdong province so enterprise users in the PRC will benefit from such a time saving and cost effective solution.

Mr. Jos Manuel dos Santos, Chairman of Vodatel Networks Holdings Limited, said, "to meet with the great demands for upgrading network infrastructure in the PRC, Vodatel has been continually receiving orders from China Telecom at both provincial and municipal levels. Up to February 2001, Vodatel has approximately total HK$150 million contracts on hand. These projects include building and expanding the narrowband and broadband data networks for our clients and also providing integration on their existing networks. At present, Vodatel has over HK$200 million cash on hand with neither short nor long term debts."

Vodatel's e-commerce

Vodatel anticipated an upsurge in competition among telecommunications providers and Broadband IP Metropolitan Network would become the market trend after China joined the WTO. Thus, the company has teamed up with Australian Crossland Technology Group as a strategic partner in 2000 to form a partnership company, Vodatel Crossland. Capitalizing the huge e-commerce market in the PRC, Vodatel provides equipment, network design and construction, and technical support; and Vodatel Crossland provides various network management and value-added e-trade applications to run on the broadband IP platform. On top of that, Vodatel has rolled out the promotion of products developed by Vodatel Crossland such as NETP and other vertical solutions to the Government of Hong Kong and Macau, as well as other enterprises.

Vodatel's Wireless Telecommunications

As to the wireless telecommunications market, Guangzhou LG-TOPS which Vodatel has equity interest, has successfully secured contracts of CDMA Wireless Systems and Terminals from Guangzhou China Telecom and Chengdu China Unicom in the city of Sichuan Province. LG-TOPS will continue to extend the promotion of CDMA products to meet the expanding market of wireless telecommunications in the PRC.

Looking forward, Mr. Jos Manuel dos Santos said, "to meet with the demands from both commercial and home users, Vodatel will continue to focus on our core business in the construction of narrowband and broadband data networks, as well as our specialization in integrated data network. We would continue to strengthen our reseller channel through the promotion of VodaImage. We also expect to increase our market share in e-commerce with Vodatel Crossland. We would continue to look for more strategic partners that would create synergy and help to broaden up the business scope of the Company, hence strengthen the revenue base of the Company."

About Vodatel Networks Holdings Limited

Vodatel, the first Macau-based company listed on GEM in February 2000, was established in 1992 by the present Chairman (the founder), Mr. Jos Manuel dos Santos. As a leading network solutions provider, the Company specializes in public data network construction, based on Digital Data Network, Frame Relay, ATM and IP technologies, and offers comprehensive integrated services from networking planning, design, installation to implementation as well as maintenance and technical support. VodaImage, a customer resources management system developed by the Company has received positive response from customers in the PRC. Its versatile businesses also cover CDMA Wireless System and Terminals partnered with LG-TOPS. To develop the broadband IP Metropolitan Networks market by providing value-added e-commerce applications, Vodatel has strategically teamed with Vodatel Crossland. Since its establishment, Vodatel has built a premium customer base including China Telecom, China Mobile, China Unicom, cable TV operators as well as enterprises in the PRC and Macau.

This release is issued on behalf of Vodatel Networks Holdings Limited by Successful Consultants Limited. For further enquires, please contact:

Vodatel Networks Holdings Limited Mr. Richard Yim / Ms. Monica Nunes C/o Ms. Mia Wong

Successful Consultants Limited Ms. Mia Wong Tel: 2122 9832

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