Strategic Investment in WaveLab Achieved Product Expansion with New Microwave Transmission Technology

Generate new Income Source and Expedite Future Growth


 (1 March 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 the strategic investment in WaveLab Holdings ("WaveLab") witnessed progress with the launch of the innovative new microwave transmission technology that will propel the Group's future growth.

In January 2003, the Group acquired a 39.21% interest in WaveLab, an R&D company specializing in microwave transmission equipment. In December 2003, it increased its equity interest in WaveLab to 51.75%. The investment is not only a testimony of the Group's sharp market insight, but also a winning strategy that enhances product portfolio and generates new income sources for the Group.

After a year of the investment, WaveLab is ready to launch a new production line of microwave transmission equipment or ODUs, which is expected to commence production and sales in the second quarter of 2004.

With the launch of this advanced technology, which the Group will integrate with its indoor units, the Group is poised to witness an ascension in future growth and business development in the digital microwave systems market and sustain its market position as the leading wireless coverage solutions provider in the PRC.