Looks like there is some renewed interest in this largely igoned...

Looks like there is some renewed interest in this largely igoned stock. Over 6m shares traded this morning. Is it because of the announcement? Or something else is brewing?

China Update One Year On

QUADTEL LIMITED 2003-01-13 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
PRESS RELEASE

Quadtel Ltd (ASX:QTL), takes the first anniversary of its investment
in China as an opportunity to update shareholders on the progress
made so far.

Quadtel is pleased to advise that Hong Kong Dragon Industries Limited
(HKDI), in which Quadtel has a 7.5% stake, is making significant
progress to solidify the position of HDKIs 100% owned subsidiary
Ningbo GWT Network Communication Co, Ltd (NGNC) as a manufacturer
/supplier of communications products into the China market.

PRODUCT MANUFACTURING AGREEMENT

HKDI reports that it has recently entered into a manufacturing
agreement with the developers of leading edge wireless communications
equipment. This is strategically important in two respects as it
enables HKDI to;

1. Provide state of the art equipment at an extremely competitive
price for the communications network previously reported to be
deployed in Ningbo by NGNC.

2. Compete effectively to supply wireless equipment outside the
Ningbo region to both the public and private sectors.

NGNC has implemented the process to obtain the necessary equipment
certifications to facilitate supplying equipment into government
owned businesses (which comprise 80% of all businesses in China). The
recent certification of the GWT Dragon series NAS products that NGNC
will manufacture and distribute will be replicated for the wireless
communication equipment. Over and above ISO 9001 certification which
is expected to be achieved in February of this year certification
will be sought from the following:

* Ministry of Information Industry
* General Affairs Department, Peoples Liberation Army
* Broadcast and Television Head Quarters
* China State Confidentiality Head Quarters

To supply into Chinese Government departments these certifications
are required.

ADDITIONAL OPPORTUNITIES CREATED FOR QUADTEL

NGNC in co-operation with Shanghai GWT Bolang Software Development Co
Ltd (SGB) is establishing a systems integration business which will
in turn be certified to supply to government. This will create
significant opportunity for Quadtel to supply into a broader client
base than was originally envisaged.

NGNC has requested that Quadtel quote on the supply of the soft
switches that are required to interface between the Voice Over
Internet Protocol (VOIP) services and the ATM switched network
servicing the Ningbo network. The supply for soft switches is
anticipated to be required in at least 10 regional centers
representing order potential in excess of 40 million USD. The
deployment of the switches is expected to be over the next 24 months
with the initial installation scheduled for the middle of 2003.

DATA WAREHOUSE AGREEMENT

Further to the manufacturing agreement, HKDI reports that NGNC has
entered into an agreement with Shanghai GWT Bolang Software
Development Co, Ltd (SGB), an associated company, which will see NGNC
operate, on a joint venture basis with SGB, a data warehouse which
will supply data storage and information management services to the
NGNC clients in the Ningbo region and will act as a mirror site to
the data warehouse being established in Shanghai by SGB. This will
not only provide additional revenue to NGNC it will serve to
consolidate the loyalty of clients on the communications network.

Design of the data warehouses has been implemented and Quadtel has
supplied the equipment for the initial stage of the NOC being
established in Ningbo.

The Quadtel management team are excited with the achievements made
over the last 12 months, especially considering the complexity of the
Chinese market, and would like to thank shareholders for their
patience and support. With the experience and knowledge gained in
China, 2003 looks set to be a great year.

For Further Information contact:

Billy Cina David Ramsay
P R & COMMUNICATIONS MANAGER CHAIRMAN OF THE BOARD
Tel: +61 2 8852 4651 Mobile: +61 409 977 799
E-mail: [email protected] E-mail: [email protected]
or visit: www.quadtel.com.

Quadtel and the Quadtel logo, Marketing Results and the Marketing
Results logo are registered trademarks of Quadtel Ltd. All rights
reserved.