"The scope of this project is an outstanding fit with Weida's capabilities," said Mitchell Sepaniak, Weida Communications' chairman and chief executive officer.

"Our China operation holds one of only two licenses for bi-directional VSAT communications in China and is one of only a few companies able to handle this high-profile, nationwide project."

"In addition, through Weida in the United States the company has access to management, financial, and technological skills that accelerate its readiness to move forward with this significant project quickly and successfully."

Sepaniak added, "The Weida business model - an entity managed under American business practices, compliant with US securities regulations, and with an operating unit in China - enables US investors to participate directly in that vibrant business climate."

China's national telecommunications company selected Guangzhou Weida from among 15 providers.

"Not only is this a significant achievement for Guangzhou Weida but also an affirmation of the expertise and reach that it has assembled. This has the potential of being its largest contract so far," Sepaniak observed.

He said that with the technological foundation for two-way satellite communications already in place, Guangzhou Weida could be making installations related to this agreement by the fourth quarter.

The next step will be cooperative efforts between Guangzhou Weida and each China Telecom division to market and sell the satellite transmission equipment and network as part of a disaster recovery program and back-up system for China Telecom's major accounts.

The government of the Peoples Republic of China has mandated that large companies have such capabilities, and Weida - using US-made Viasat equipment with its demonstrated high-quality performance and durability - is a recognized leader in supplying the services that meet security, redundancy, remote monitoring, and high-speed data transmission qualifications.

"The arrangement with China Telecom demonstrates the key role that satellite communication plays in China's fast-growing telecommunications market," Sepaniak said.

"The satellite-based systems that China Telecom and Guangzhou Weida will offer can be deployed more quickly than traditional telephone service and accommodate a broader range of telecommunications services, advantages that are essential in a dynamic economy."

Weida Communications expects to receive both equipment payments and continuing service-related fees from purchase orders from China Telecom accounts. Specific terms weren't disclosed.

Weida Communications' revenues from the cooperation agreement depend on China Telecom's end-user accounts placing purchase orders, and there is not likely to be a material amount of revenue for Weida from this arrangement before 2005's first quarter.

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