Intel, the world’s leading chip producer, invested nearly US$200 million in a facility in the Waigaoqiao free-trade zone in Shanghai, International Finance News reported today.

The company said that the new investment is for a production line dedicated to chips for the Pentium 4 processors. The chips will be built for the export market.

Intel, like most high-tech companies, has been reeling since the Sept. 11 terror attacks. Its stock fell 7.23 % on Thursday. But the company has told analysts that it intends to continue its global investment strategy, even as demand slows.

Largest Contract in the Company's History Demonstrates China Telecom's Firm
Confidence in the Benefits of PAS(TM) Technology in China

ALAMEDA, Sept. 4 /PRNewswire/ -- UTStarcom Inc., (Nasdaq: UTSI), a leading provider of wireless, wireline and broadband access equipment, today announced a new single city contract win totaling approximately $52 million for its
PAS(TM) city-wide wireless access system in the Zhejiang province of China. Zhejiang is one of the most affluent of the coastal provinces in China and this deployment will serve a major city covering approximately 12 thousand square kilometers.
(Photo: http://www.newscom.com/cgi-bin/prnh/20001102/UTSILOGO )
"This contract, the largest in the history of the company, further demonstrates UTStarcom's belief that China Telecom is becoming more and more confident in deploying our PAS services around the country," said Ying Wu, President and CEO of UTStarcom China. "Since the structural tariff changes, especially the long distance rate cut, was imposed in March of this year, telecom operators such as China Telecom have faced the ever increasing challenge of maintaining its development and growing its revenues. Given these tariff changes, we think China Telecom must pay particular attention to their return on investment; which we believe is a pivotal factor when operators are deciding whether to deploy the PAS service. Our numbers have shown that our PAS(TM) service has helped China Telecom bring in more subscribers as well as help grow its revenue. There have been many cities that have seen their return on investment with PAS within 2 to 3 years. We believe that the PAS system is the optimal solution for China Telecom's operators as it is the most cost-effective and best quality wireless voice and data service on the market."
As one of the major markets of UTStarcom's PAS(TM) system, the total number of subscribers in the Zhejiang province has almost doubled since the beginning of 2001, from 175,000 in January to just over 340,000 by mid-August.

About PAS(TM)
PAS(TM) is a personal wireless access system, which offers the consumer the convenience of a mobile phone with the cost advantages of a fixed-line phone. In contrast to the highly competitive and more costly mobile market,
PAS(TM) has the advantage of a 69 gram, 800 hour standby/6 hour talk-time battery handset, with the additional potential for high-speed 64kpb/s data transmission, wireless email and Internet access, all at a lower cost to the consumer. UTStarcom's PAS(TM) provides city-wide mobile phone service for communities of up to several hundred thousand subscribers at traffic densities of upwards of 15,000 subscribers per square kilometer. The PAS(TM) system is designed to be integrated into the existing wireline network and does not require any modifications to the central office switch or incremental mobile switching hardware adaptations, enabling telephone service providers to efficiently and cost-effectively deploy wireless services for their customers.

About UTStarcom, Inc.
UTStarcom designs, manufactures, sells and installs an integrated suite of future-ready access network and next-generation switching solutions. We enable wireless and wireline operators in fast-growth markets worldwide to offer voice, data, and Internet access services rapidly and cost-effectively by utilizing existing infrastructure.
UTStarcom's products provide a seamless migration from wireline to wireless, from narrowband to broadband, and from circuit- to packet-based networks by employing "Next Generation Network Technology. Now." The Company's customers are public telecommunications service providers that operate wireless and wireline voice and data networks in rapidly growing communications markets around the world. Current product offerings
include:

-- PAS(TM), which provides voice and data services over city-wide mobile wireless networks;
-- AN-2000, a broadband and narrowband access system for wireline networks;
-- WACOS, an IP-based mobile Softswitch platform designed to deliver wireless and wireline telecom services. WACOS contains a Softswitch call server with mobility management (VLR/HLR), a group of distributed multi-service IP gateways and a full suite of operation support system modules (OSS), including subscriber management, customer care, mediation and billing services.

Founded in 1991 and headquartered in Alameda, California, the Company manufactures the majority of its products at two ISO9002 certified facilities located in China, and maintains sales and customer support sites throughout Mainland China and in Iselin, NJ; Alameda, CA; Miami, FL; Taipei, Taiwan; Hong Kong; and Tel Aviv, Israel and New Delhi, India.
For more information about UTStarcom, visit the Company's website at http://www.utstar.com.
NOTE: PAS, AN-2000, WACOS and the UTStarcom name and logo are trademarks of UTStarcom, Inc. and its subsidiaries.

Forward-Looking Statements
The foregoing statements regarding the Company's ability to deploy its
PAS(TM) service in the single city in the Zhejiang Province of China, the Company's estimate of the amount of backlog from the PAS(TM) contract in this province, expectations regarding the future deployment by China Telecom of our
PAS(TM) services, the ability for UTStarcom to bring new subscribers and help grow revenue at a faster pace for China Telecom, the return on investment for
PAS(TM) services and the continued cost-effectiveness and superior quality voice and data services for China Telecom are forward-looking in nature and subject to risks and factors that may cause actual results to differ materially. These risks and factors include rapidly changing technology, the changing nature of China's telecommunications market, the direction and success of future research and development efforts, evolving product and application standards, changes or delays in product deployments and introductions, delays in the installation and deployment of the PAS(TM) networks in the Zhejiang province, the termination of significant contracts, partnerships, or alliances in the Zhejiang province, or with China Telecom in general, non-recognition of backlog and uncertainties such as changes in government regulation and licensing requirements. The Company also refers readers to the risk factors identified in its Registration Statement on Form S-3, Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission.

(19 September 2001) Microsoft has announced that it would introduce the Chinese edition of its MSN Explorer software in October this year to provide a customized link to the Chinese edition of MSN portal Web site
- china.msn.com.

Celia Chong Wu, general manager of Microsoft Asia MSN Division, said the software will integrate Hotmail, "instant messenger" and the browser, and will provide the customized link to the Chinese edition of MSN portal Web site, Sina.com reported on Sept. 17.

The software will be included in Windows XP, and users can download it online. She said that the hosting location of the Chinese MSN Web site would be in the United States. The Web site will provide technical information and initially will focus on information on Microsoft products without offering news. She said they did not anticipate any legal problems even though China has very strict laws and regulations on foreign Internet content.

Steve Yap, CEO of Iamasia (www.iamasia.com), an Internet survey company in Hong Kong, said that China is one of the few major markets in which foreign Web sites including Microsoft still do not have the majority of the users. Currently, the market is occupied mainly by the local Internet Contents Providers, such as Sina.com, Sohu.com and NetEase.com.

(24 September 2001) As the world’s aviation industry struggles to recover from the Sept. 11 terrorist attacks on the United States, China may emerge as a bright spot.

"By 2020, Chinese airlines will have over 2,200 planes, and China will become the second largest civil-aviation market in the world, next only to the United States," said Hao Fude, president of Boeing China Inc. He added that by that time, a Chinese passenger plane would take off every eight seconds.

According to Boeing’s "Chinese Market Forecast 2001"—which was compiled before the terrorist attacks but released on Sept. 19—China’s airlines will need 1,764 new aircraft in the next 20 years, with 80 percent of them serving the domestic market. Feeder-line and single-aisle planes will become the mainstream, the Sept. 20 Beijing Qingnian Bao (Beijing Youth Daily) reported.

According to Chicago-based Boeing, the average annual growth of the Chinese civil-aviation industry reached 19 percent between 1985 and 1995 in the volume of passenger transport, while such growth amounted to 7 percent between 1996 and 2000.

Therefore, the report estimates that in the next 20 years, the total volume of air transport in China will grow by 9.3 percent per year, the article said. By comparison, the average growth in the world will only be 4.7 percent during the same period.

Sky’s the limit

From 2001 to 2020, China's demand for civil aircraft will amount to 1,764 planes, with a total value of US$144 billion, the report said. Currently, the Chinese sector has about 560 aircraft. By 2020, the scale of the Chinese fleet will be quadrupled and the number of passenger planes will be more than 2,209, accounting for 7 percent of the world’s fleet.

According to Boeing’s estimate, 30 percent of the new aircraft in China will be double-aisle planes, which will serve international and major domestic air routes. The demand for single-aisle planes, including feeder-line planes, will be larger and is estimated to reach about 68 percent of the total.

The report also noted that 78 percent of the aircraft flying in the domestic market in 2020 will be feeder-line and single-aisle planes, 19 percent will be medium-size double-aisle planes, while Boeing 747s and even larger planes will account for only 3 percent of the total.

Currently, China has only 50-plus feeder-line planes with less than 70 seats each, which is not enough for the growth of feeder-line transport, the article noted. Therefore, the purchase of feeder-line aircraft by China’s airlines is expected to show a substantial increase in the future.

Airport expansion

Boeing believes that China’s airports will be able to adapt to the future growth and that Beijing, Shanghai and Guangzhou will become the core air-transport hubs.

The expansion of Beijing’s Capital Airport will be completed in 2007, with three airport terminals and four runways. The airport’s annual passenger-handling capacity will be doubled and will reach 70 million.

Meanwhile, the passenger-handling capacity of the Guangzhou International Airport, which is to be completed next year, will reach 80 million. The passenger-handling capacity of the Shanghai Pudong Airport is 40 million, with the current rate of utilization at only 16 percent.

In addition, air traffic from China to Europe, North America and the Asia-Pacific region has the potential to increase the density of nonstop flights and add new nonstop air routes.

By 2020, due to the rapid expansion of China’s domestic market, the number of flights per week will top 64,000, including those to and from Hong Kong and Macau.

(18 September 2001) China, including Hong Kong and Macau, will require 1,764 commercial jet airplanes worth $144 billion between 2001 and 2020, according to The Boeing Company's Current Market Outlook - The China Market Forecast 2001, released today at the Aviation Exposition China.

By 2020, Chinese carriers will be flying more than 2,200 airplanes, making China the largest commercial aviation market outside of the United States.

China's airlines will add 1,459 new airplanes to serve domestic markets including Hong Kong and Macau.
More than eighty percent of China's new airplanes will serve the domestic market, in which single-aisle airplanes are dominant. Regional jets and single-aisle airplanes will account for 78 percent of the airplanes serving the domestic market.

Thirteen percent of the units in the 2020 fleet will be small and intermediate-size regional jets. Another 19 percent will be intermediate-size twin-aisle airplanes, and just 3 percent will be 747-size and larger.
The need for new airplanes is required to support a 9.3 percent increase in air travel in China from 2001 to 2020, compared to the world average of 4.7 percent. Travel growth for key traffic flows:

China to: Growth
China (domestic) 9.3%
North America 6.5%
Asia-Pacific 5.4%
Europe 5.2%

The Asia-Pacific region will show healthy growth throughout the 20-year forecast period. The entire Asia-Pacific market will grow at an average annual rate of 6.4 percent between 2001 and 2020.

"China is one of the fastest growing markets in the world for commercial aviation," said Randy Baseler, Boeing Commercial Airplanes vice president
- Marketing. "China's 20-year Gross Domestic Product (GDP) forecast is 6.1 percent -- the highest in the world, and Boeing projects that air travel growth will outpace the GDP growth over the next two decades."

China's airline industry has grown at a brisk pace over the past 16 years. From 1985 through 1995, China's average annual passenger growth rate was 19 percent; from 1996 through 2000, it averaged 7 percent.

"The China market represents tremendous growth opportunities for The Boeing Company," said Fred Howard, president of Boeing China. "Boeing has been in China for almost 30 years, and 64 percent of the commercial airplanes in the China fleet are Boeing products. We have a long-term growth strategy for the China market which includes offering an expanded set of products and services."

The Boeing (NYSE: BA) forecast estimates the world fleet will more than double by 2020 to a total fleet size of 32,954 airplanes. In the same forecast period, 7,261 airplanes will be retired from active commercial service and be replaced. During the next 20 years, airlines will take delivery of more than 23,000 airplanes and require $3.1 trillion in aviation support services.