Eastern Communications Co.,Ltd. (China)

The Origin of the Group dates back to 1958 when ZhejiangProvincial Telecommunications Equipment Factory (ZhejiangFactory) was established to engage in the production ofcarrier wave telephone terminals. between 1958 and 1981, thGroup was principally engaged in the development, productionand sales of tandem equipment for teleconferencing, UHFtranssceivers, carrier wave telephone amplifiers, newspaperfacsimile machines, microwave terminals and specialiseddespatch equipment. During this period of the Group'sdevelopment, the products and equipment which were producedby the Group were distributed or allocated through other MPTentities to PRC governmental institutions throughout the PRCIt was during this period that the Group developed therelationships with the posts and telecommunications bureauxwhich now serve as the focus of the Group's marketingstragegy.In December 1990, CTIEC signed its first technology licensewith Motorola, pursuang to which HCEF, as designated contracfactory, began producing TACS 8800X cellular mobiletelephones and TACS 4800X cellular mobile transportabletelephones under license from from Motorola in 1992. In June1994, Chuangye was established as a wholly-owned subsidiaryof HCEF. The major business and assets previously undertakeby HCEF in relation to the production and sale of cellurarmobile communications and transmission products were injecteinto Chuangye. Chuangye was accredited as an HNTE in May1995 in Hangzhou High and New Technology Zone. The Companyis a subsidiary of PTIC, which is a national industrialgroup corporation under the MPT responsible for supeervisingall the posts and telecommunications equipment producersunder the MPT. The MPT is a government ministry under theState Council responsible for the regulation and supervisionof the posts and telecommunications industry in the PRC. ThMPT exercises centralised control over the publiccommumnications networks and communications market in thePRC. The Company's B shares were listed on Shanghai StockExchange on 9th August, 1996.