Packaging

China GrenTech Wins Sizable Bid on RF Module Order for the First Half of 2009

Monday 22. December 2008 - China GrenTech Corporation Limited (Nasdaq: GRRF, the "Company" or "China GrenTech") announced that it has won its bid to produce RF modules for a globally recognized and the leading Chinese manufacturer of CDMA and WCDMA base station duplexer and filter series.

Based on the manufacturer’s estimates, the contract value is approximately RMB45 million. It is expected that product delivery will be completed in the first half of 2009.

Mr. Gao Yingjie, Chairman of China GrenTech, said, “We are very pleased with the successful win and believe that this will further enhance the growth of our RF business for the first half of 2009. As the number of RF module customers and their order volumes grow, our ability to select quality orders, and hence our profit margins, will improve.”

Mr. Gao added, “In addition, the recent developments have been very encouraging for our business which includes the Chinese government’s RMB4 trillion stimulus package, the confirmation on the issuance of 3G license and the resumption of 2G network construction investment plans by the operators following the completion of the restructuring of the Chinese telecommunication industry. Moreover, global communications equipment manufacturers continue to increase procurements from China and, as a qualified supplier for the top 3 international base station manufacturers, we will benefit from this continued outsourcing trend. We expect that these factors, taken together, will present ample opportunities in both our base station RF module and our wireless coverage businesses going forward.”