Shenzen China : Comtech Group announced a significant design win for a TD-SCDMA Infrastructure solution from Datang Telecom Technology.

TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) is China's proprietary 3G mobile telecommunications standard developed by Datang, Siemens and CATT (Chinese Academy of Telecommunications Technology). The independent development of China's own 3G standard has strong support from the PRC government since it releases China's dependency on outside core technologies and eliminates the need to pay licensing fees for either Qualcomm's CDMA 2000 3G formats or Europe's WCDMA standard.

In January 2006, the Chinese government officially announced that TD-SCDMA is one of the country's 3G mobile telecommunication standards. A timeline of the network deployment across China was announced in February and commercial trials in selected cities were scheduled to run from March to June. It is anticipated that TD-SCDMA will be the first 3G license granted in China in the near term.

Comtech will provide various customized module design solutions for use in Datang's infrastructure equipment. This latest design win for a TD-SCDMA solution reflects Comtech's continued efforts to establish a prominent presence in China's emerging 3G marketplace as the Company's design solutions are now compatible with all 3G standards including WCDMA and CDMA2000. Comtech expects to continue to work closely with Datang and other equipment manufactures to help bring 3G technologies to market while also leveraging these key relationships to cross market these designs for other large scale projects across China, creating incremental revenue opportunities. The deployment of the solution for Datang is scheduled to commence in the second half of the year with accompanying revenue to Comtech also recognized during that period.

"Comtech is delighted to work with Datang, China's leading science and technology innovator," remarked Jeffrey Kang, Chairman and Chief Executive Officer. "This design win is important to Comtech as it further validates our design strength for large scale telecom infrastructure solutions and confirms our participation in the latest in 3G technology. Our relationship with Datang and the TD-SCDMA Industry Alliance has secured Comtech's role in the on-going development related to the nationwide 3G infrastructure. We believe TD-SCDMA related business will become one of Comtech's major revenue drivers once the Chinese government grants initial 3G licenses in near future."

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