July 10, 2008

AsiaInfo to Upgrade China Telecom’s WLAN System and IP Billing System

New System Will Support Diversified Business Model and Increased Subscriber

Growth in Northern Telecom's Nine Provinces

BEIJING and SANTA CLARA, Calif., July 10 /Xinhua-PRNewswire-FirstCall/ -- AsiaInfo Holdings, Inc. , a leading provider of telecom software solutions and IT security products and services in China, today announced that it has signed a contract with China Telecom to upgrade its Wireless Local Area Network ("WLAN") system and IP billing system for Northern Telecom, the northern division of China Telecom that covers nine provinces in northern China. This is the sixth consecutive year in which AsiaInfo has won the contract since 2002.

"This sixth successive contract win to upgrade Northern Telecom's WLAN system and IP billing system speaks to AsiaInfo's ability to deliver best-of-class, innovative software solutions in China's evolving telecom industry, and is also another opportunity to deepen our relationship with China Telecom," said Steve Zhang, AsiaInfo's president and chief executive officer. "AsiaInfo's world-class OpenBilling system offers operators reliable, scalable features that accommodate increased subscriber growth. Moreover, the system offers the flexibility needed to adapt to a diversified business model that now includes broadband, fixed line and mobile businesses -- an important requirement for China Telecom as it expands into mobile services."

Under the terms of the contract, AsiaInfo will upgrade the WLAN system to comply with China Telecom's WLAN 2.0 specifications, enabling it to accommodate broadband, fixed line and mobile operations. The new IP billing system will feature enhanced business management and back-office support functions, the capacity of which will be expanded to support approximately 5 million users.

About AsiaInfo Holdings, Inc.

AsiaInfo Holdings, Inc. is a leading provider of high-quality telecom software solutions and IT security products and services to some of China's largest enterprises as well as many small and medium sized companies in China. An established leader in the Chinese telecommunications industry, AsiaInfo became a prominent supplier of IT security products and services in China with the acquisition of Lenovo's non-telecom related IT services business in 2004.

Organized as a Delaware corporation, AsiaInfo began operations in the United States in 1993. The Company moved major operations to China in 1995 and played a significant role in the construction of the national backbones and provincial access networks for all of China's major national telecom carriers, including China Telecom, China Mobile, China Unicom and China Netcom. Since 1998, AsiaInfo has continued diversifying its product offerings and is now a major provider of telecom software solutions in China.

For more information about AsiaInfo, please visit http://www.asiainfo.com/ .

The information contained in this document is as of July 10, 2008. AsiaInfo assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments.

This document contains forward-looking information about AsiaInfo's operating results and business prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate,""estimate,""expect,""project,""intend,""plan,""believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: government telecommunications infrastructure and budgetary policy in China; our ability to maintain our concentrated customer base; the long and variable billing cycles for our products and services that can cause our revenues and operating results to vary significantly from period to period; our ability to meet our working capital requirements; our ability to retain our executive officers; our ability to attract and retain skilled personnel; potential liabilities we are exposed to because we extend warranties to our customers; risks associated with cost overruns and delays; our ability to develop or acquire new products or enhancements to our software products that are marketable on a timely and cost-effective basis; our ability to adequately protect our proprietary rights; the competitive nature of the markets we operate in; political and economic policies of the Chinese government. A further list and description of these risks, uncertainties, and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and in our periodic reports on Forms 10-Q and 8-K (if any) filed with the United States Securities and Exchange Commission and available at http://www.sec.gov/ .

   For more information, please contact:    For Investors:    Sheryl Zhang    AsiaInfo Holdings, Inc.    Tel:   +86-10-8216-6039    Email: [email protected]    For Media:    Andrew Keller    Ogilvy Financial, Beijing    Tel:   +86-10-8520-3112    Email: [email protected]  

AsiaInfo Holdings, Inc.

CONTACT: For investors, Sheryl Zhang of AsiaInfo Holdings, Inc., +86-10-8216-6039, or [email protected]; for media, Andrew Keller of Ogilvy PublicRelations Worldwide for AsiaInfo Holdings, Inc., +86-10-8520-3112, [email protected]

Web site: http://www.asiainfo.com/