Qiao Xing's (XING) subsidiary, Hui Zhou Qiao Xing, has made an arrangement with Huawei to supply China Unicom (CHU) with fixed wireless telephone products. Hui Zhou has received from Huawei an initial order of 3000 units.

Mr. Wu Rui Lin, Chairman of Qiao Xing Universal, said, "I am very pleased that Huawei, a world renowned company, had chosen to associate us in its solution package to China Unicom. The products we are supplying to China Unicom are to be used mainly as pay phones on college campuses. The arrangement provides for the shipment by Hui Zhou of up to 300,000 units of fixed wireless telephone sets via Huawei within 12 months of the initial order. The amount would be about US$30 million in terms of sales revenue to the Company.

Hui Zhou has established direct and indirect relationships with branches of mobile phone network operators China Mobile and China Unicom in more than 20 provinces, therefore facilitating product distribution all over China through their channels.

On the basis of existing agreements with distributors and mobile communication carriers, Qiao Xing forecasts that, for 2005, the sales revenue of fixed wireless telephone products for Qiao Xing could reach US$50 million.