Wavecom strengthens its presence in China's mobile phone market

Wavecom signs contract with Soutec, a leading Chinese manufacturer of mobile phones.
Issy-les-Moulineaux, France -November 05, 2001

Wavecom SA (Nasdaq: WVCM; Nouveau Marché: 7306), a leading developer of digital wireless standard modules (WISMO™), today announced that it has signed a contract with Guangzhou Southern High-tech Co., Ltd. (Soutec).

The contract calls for Wavecom to supply WISMO GSM/GPRS modules to Soutec, one of China's top mobile communications companies. Soutec, which has its own R&D centre, has already released five mobile phone models, including GSM models.

Commenting on the deal, Soutec's President, Chen Zhen, said: "We have chosen the WISMO technology because of its high performance and ease of use. This partnership with Wavecom will enable us to rapidly expand our product range and bring to market new models of mobile telephones".

Five of the thirteen Chinese companies licensed to manufacture and sell mobile handsets in China are now on Wavecom's client roster. Three of them are direct clients - Soutec, TCL and China Kejian - while two others are indirect customers that distribute telephones manufactured by the Korean handset maker, Sewon, in China.

States Jean-Charles Andreani, Managing Director of Wavecom's Asia-Pacific subsidiary in Hong Kong: "WISMO technology is attracting growing numbers of mobile communications companies operating in China. The steady increase in our market share in that country - one of the world's largest markets, with more than 100 million subscribers - illustrates not only the real potential of China but also the trust that telephone manufacturers are placing in us".

About Soutec

Soutec is a key Chinese R&D center for mobile communication terminals and a licensed manufacturer for GSM mobile phones in China. Established in 1999 in Guangzhou, P.R. China, Soutec is the first company who achieved FTA certificate with its own Intellectual Property in China. Until now, it has released 5 models of mobile phone in China market and its marketing network has covered almost every province of China mainland