Comtech Providing Designs for Vodafone 3G Handsets

China's Comtech has announced its first major design win from Huawei for customized 3G cell phone modules. Comtech will provide customized module designs for use in Huawei's new Vodafone-branded 3G phone. It is anticipated that Huawei will commence manufacturing of these phones with shipments to Vodafone expected during the second half of this year. This new design win with Huawei is significant as it now allows the Company to establish a presence in the 3G marketplace and capitalize on Huawei's strategic product expansion into handsets.

It is expected that Huawei will leverage its strong position in the 3G equipment area to become a leading 3G handset provider in both China and the worldwide market.

"This design win is significant for Comtech, as it is our first major deal within the 3G market and is consistent with our strategy to identify high growth opportunities where we can leverage our existing customer relationships to produce orders," commented Jeffrey Kang, Chairman and Chief Executive Officer. "Our 3G handset business has just begun to ramp up production with most products currently shipping to the overseas market. We anticipate strong growth in domestic orders once the government of China grants initial 3G licenses later this year. We have spent over three years in research and development with our partners to help bring this technology to market and believe the investments we have made has helped to solidify our relationships while giving us a defensible product platform. We are pleased to work with Huawei and other leading cell phone manufactures as we look to capitalize on the growing worldwide demand for 3G services and products for the years to come."

In February, Huawei signed an important strategic agreement with Vodafone to become the exclusive supplier of Vodafone's consumer 3G handsets across 21 countries for a period of at least five years."

Posted to the site on 21st April 2006