Comba Increased its Equity Interest in WaveLab

(1 January, 2004 – Hong Kong) – Comba Telecom Systems Holdings Limited ("Comba" or the "Group"; stock code: 2342), the premier integrated wireless coverage solutions provider in China, announced today that it has exercised the First Option to further subscribe 171 new shares in WaveLab Holdings ("WaveLab") at a cash consideration of US$2 million through its indirect wholly-owned subsidiary, Cascade.
In January 2003, the Group acquired an indirect 39.21% equity interest in WaveLab. After the exercise of the First Option, Cascade will hold a total of 429 shares of WaveLab, representing an increase from approximately 39.21% to 51.75% of its total issued share capital.
As the premier integrated wireless coverage solutions provider in China, Comba is renowned for its impressive R&D capability, proven financial track record, unrivalled core RF technology platform and established nationwide sales and services network. Together with the technological expertise of WaveLab, which owns and operates a research and development center and engages in the R&D of microwave transmission equipment in telecommunications systems, Comba is confident of capturing business opportunities brought forth by WaveLab and the flourishing telecommunications market in the PRC.
Commenting on the subscription, Mr. Fok Tung Ling, Chairman and Managing Director of the Group, said, "Robust R&D is always of utmost importance for the innovation of new solutions. WaveLab has already reached an advanced stage for the R&D of certain models of outdoor units, which are ready for commercial production in the near future. Through this subscription, we hope to enhance the R&D standard for the Group, as well as to expand our product portfolio through WaveLab. Looking ahead, the Group will endeavor to maximize returns for our supportive shareholders and to continue seeking after potential growth and investment opportunities."