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SUNDAY and Huawei today announced Heads of Agreement for the supply of equipment and the provision of financing to assist with the roll out of SUNDAY's third generation (3G) mobile telecommunications business.

"This is tremendously exciting news for both SUNDAY and Huawei, representing a partnership between two young and dynamic companies," said Bruce Hicks, Group Managing Director, SUNDAY Communications Limited. "Huawei has excellent technology that is truly among the world's best and we feel very comfortable working with the management, which is internationally minded and committed to high standards. Huawei's proximity to Hong Kong in Shenzhen means that we will enjoy a very close working relationship on technology development and product introduction, giving SUNDAY a significant edge over its rivals in developing creative, tailor-made services and bringing them to market quickly."

The Heads of Agreement was signed between Huawei and Mandarin Communications Limited, a wholly owned subsidiary of SUNDAY. The Heads of Agreement cover a supply contract outlining principal terms of equipment supply, and facilities for the financing of SUNDAY's 3G network, the final terms of which agreements remain to be finalized. In addition, the Heads of Agreement provide for a loan to be made to enable SUNDAY to repay its existing vendor and bank loans.

The supply contract is expected to cover the entire end-to-end WCDMA solution needed for the 3G launch, including WCDMA wireless access network, core network, 3G mobile intelligent network, 3G mobile data service platform and applications. Huawei will be the sole supplier and main contractor of equipment for SUNDAY's 3G network.