Comtech's (COGO.OB) China subsidiary, Shenzhen Comtech International Limited, has entered into a new contract with Huawei to provide key components of line cards used in PSTN switching systems.

This contract will provide approximately 10% of Huawei's total purchase of line card components in 2005.

"Huawei is a marquee communication equipment provider and we are delighted to extend our long-standing relationship with this company," said Jeffrey Kang, Comtech's chairman and chief executive officer. "We have worked with Huawei since Comtech's inception in 1995. Our long-term relationships with clients, such as Huawei, as well as our broad customer base enable us to capitalize on high growth in the Chinese handset market and the Chinese telecom equipment market."