ASIA Indonesia : Hutchison Telecom Indonesia has contracted with Siemens to build, implement, operate and maintain its GSM/W-CDMA network in Indonesia.

Hutchison Telecom Indonesia plans to offer a range of comprehensive and affordable nationwide wireless communications services in Indonesia over a GSM network and W-CDMA infrastructure overlays in key cities. Siemens Communications will be supplying the equipment and assuming responsibility for managing the network.

Under the terms of the contract, Siemens will supply and build the entire radio and core networks, providing broad coverage and ample capacity for the initial phases. The network will then be steadily expanded to keep pace with the rapidly growing demand for nationwide radio coverage and high capacity. This will enable Hutchison Telecom Indonesia to not only provide comprehensive nationwide basic voice and value-added services but also high-speed mobile data services in key cities. Siemens will additionally assume responsibility for managing and maintaining the entire network - 24 hours a day, 365 days a year. This will involve such services as managing the operations and maintenance center or as network planning.

With a market penetration of 15 percent, Indonesia is one of the fastest-growing mobile network technology markets in Asia. Due to the swift growth of the customer base, the demands that are being placed upon network performance and quality are also on the rise.

Dennis Lui, Chief Executive Officer of Hutchison Telecom said, "Indonesia is one of our key strategic growth markets. It is our priority to build a high quality wireless network with scalability from the beginning. We are pleased to partner with Siemens in one of our most significant capital investment projects. With their global experience in wireless network deployment, especially in Indonesia, and recognized expertise in managed services, Hutchison Telecom Indonesia is well positioned to achieve market growth as well as products and service innovation in Indonesia."

"This order marks a major success for us that confirms our strategy of building upon innovative and competitive end-to-end solutions," said Thomas Ganswindt, the Chief Executive Officer of the Siemens Communications Group and a member of the Corporate Executive Committee of Siemens AG. "Hutchison Telecom Indonesia is putting its money on our wireless technology and services. This trust demonstrates that we are outstandingly aligned in the telecommunications industry and one of the strongest market players in both wireless communications and service business."

With this order, Siemens continues to expand its strategic relationship with Hutchison Telecom and Hutchison Whampoa Limited. Siemens and its partner NEC have already collaborated in setting up 3G network solutions for Hutchison in Austria, Hong Kong, Ireland, Italy and the UK, for example. As the pioneer in the global 3G/W-CDMA market, the Siemens/ NEC alliance has achieved outstanding success. Over 90 percent of the world's 3G subscribers are communicating over 3G network technology from Siemens/NEC. An April 2005 report from the independent MM Research Institute in Tokyo positioned NEC/Siemens as the number one in the 3G/W-CDMA market for commercially installed node-Bs with a 30.1-percent share of the world market. Prompted by their experience in collaborating over the course of the past six years, both NEC and Siemens have decided to identify further areas for closer collaboration in the years to come.