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SUNDAY Increases 3G Supply Contract and Expands Financing Facilities with Huawei Ensures Best Possible 3G Launch in 2005 HONG KONG, Nov. 16 /Xinhua-PRNewswire-FirstCall/ -- SUNDAY Communications (SEHK:0866)(NASDAQ:SDAY) today announced that it has increased its 3G supply contract and expanded and improved its financing facilities with Shenzhen-based Huawei Technologies Co. Ltd (Huawei), ensuring the best possible launch of its 3G service in 2005. The value of the Supply Contract has increased by HK$349 million, from HK$859 million to HK1,208 million. The agreement is supported by a corresponding increase in the financing package with Huawei, together with an extension of the repayment terms on the general financing facility that forms part of the financing. 'This is excellent news for SUNDAY,' said SUNDAY's Group Managing Director Bruce Hicks. 'The expansion of our supply contract and improvement in the financing terms demonstrates the confidence both SUNDAY and Huawei have in our 3G multimedia future. Our original agreement was flexible and allowed for such changes in the contract to respond to market conditions as they develop. We have followed the right strategy by not launching 3G before the market is truly ready, which has also allowed us and Huawei to learn from the recent roll out of 3G services around the world. As a result, we have agreed to purchase additional equipment. This will give us extra capacity and ensure that when we launch 3G, we will provide the quality and creativity of service that our subscribers have come to expect from SUNDAY. The new terms demonstrate how well we and Huawei are working together to ensure SUNDAY 3G sets the standard for the new era in mobile communications in Hong Kong.' Supply Contract/Financing Under the Supply Contract, Huawei will design, construct, manufacture, sell, supply and deliver equipment and services for the establishment, installation, implementation and commissioning of SUNDAY's 3G network on a turnkey basis. The revised terms of the agreement with Huawei include: -- Supply Contract amount has increased from HK$859 million to HK$1,208 million, as before over 3 years. -- Equipment Supply Facility has also increased from HK$859 million to HK$1,208 million, with the term to remain 7.5 years in eight installments, with the first repayment due in May 2008. -- HK$500 million General Facility repayment period has been extended from 2.5 years to 7.5 years, with the next repayment due July 2006 and final in July 2011. (This facility is fully drawn down and SUNDAY repaid HK$75 million in July 2004, leaving HK$425 million outstanding.) -- The terms of the 3G Performance Bond Facility remain unchanged. The Supply Contract as well as the Facility Agreement comprising the Equipment Supply Facility, General Facility and 3G Performance Bond Facility are made between SUNDAY's operating subsidiary Mandarin Communications Limited (Mandarin) and Huawei Tech. Investment Co., Limited (HTIC), a subsidiary of Huawei incorporated in Hong Kong. The transactions were signed in May 2004, following a Heads of Agreement between the two companies announced in December 2003. 'SUNDAY 3G is the multimedia service to watch for,' added Bruce Hicks. 'SUNDAY 3G first previewed in October at Huawei's booth at PT/EXPO COMM in Beijing, attracting keen interest from both the industry and China's highest-ranking government officials. We're confident that by partnering with Huawei's world-class technology, and closely monitoring the market to avoid costly early launch mistakes, SUNDAY 3G will be well received by our customers when we launch in 2005. The new terms of our partnership with Huawei put us in an even better position to achieve success.' About SUNDAY SUNDAY is an innovative developer and provider of wireless communications and data services in Hong Kong. SUNDAY began commercial operations in 1997. The company's core strategy is to capitalise on the convergence of wireless communications and data technologies to develop innovative, relevant and value-driven services and solutions. Today, SUNDAY enhances people's lives by delivering wireless voice and data applications and services to meet the lifestyle needs of specific customer segments. Owning a 3G mobile license, SUNDAY has the increased bandwidth and advanced technology to meet the rapidly developing market demand for enhanced multimedia services. For more information, please visit http://www.sunday.com/ . Contact: Stella Wong Corporate Communications Manager Tel: +852-2113-8251 / 9230-5501 Email: DATASOURCE: SUNDAY Communications Limited CONTACT: Stella Wong of SUNDAY, +852-2113-8251 / 9230-5501, or Web Site: http://www.sunday.com/

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