TAIPEI, TAIWAN (MARKET WIRE) City Network, Inc. (AMEX: CSN) a company that designs, manufactures and markets a comprehensive line of broadband and wireless Internet access solutions and consumer electronic products, announced today that it has obtained a new project with Chunghwa Telecom Co., Ltd. (NYSE: CHT), Taiwan’s largest telecommunications company listed as an ADR on the NYSE.
City Network successfully obtained an important business contract via an open bid process amongst competition from several very well-established and highly qualified local market competitors. The winning of the contract represents the largest of a series of orders City Network has obtained from the local telecom giant. The total value of this current contract is nearly US$1,000,000.
The agreement provides that City Network will supply a series of products from both Sun Microsystems and software developed by Oracle including two high capacity high-end servers, five middle range servers, twenty smaller servers and arrays of RAID storage peripherals for the servers as well as one related database software packages. Engineers from City Network will oversee the installation, management and maintenance of the project equipment with each of the products being sold to Chunghwa Telecom scheduled to be delivered by the end of December 2004. «We see the winning of this most recent bid and contract as a milestone for our company,» commented City Network Chairman Andy Lai, «the project represents the largest to date of our business dealings with Chunghwa Telecom and, we believe, represents proof of the success of City Network’s sales and engineering teams.»
City Network took part in a countrywide open bid competition in order to participate in this infrastructure project. There were more than a half dozen direct competitors who were involved in the two month process of selection and qualification which culminated in last week’s bidding activities, but City Network was able to successfully bid the most competitive price, and therefore obtained the contract. In order to obtain the contract, City Network also passed a series of strict evaluation procedures established by Chunghwa Telecom’s project evaluation team. Therefore, the Company was able to offer the lowest cost as well as high quality to the customer.
The project, which Chunghwa Telecom has named the HiNet Domain Name Service Infrastructure System, is a sub-project of Chunghwa’s Internet Information Applications Service Program. This program is being developed to provide infrastructure equipment and database software to support Chunghwa Telecom’s ISP business and to continue to meet the growth needs of its internet broadband client base. The goal of the project is to continue to strengthen and improve the quality of Chunghwa Telecom’s previously existing HiNet Domain Name Service (DNS), which is one of the overall services provided by HiNet. Other services of Chunghwa’s HiNet include E-mail services, Anonymous FTP, virtual hosting, WebHD, SMS/MMS/SyncML, multi-media, and other applications including e-business services.
About Chunghwa Telecom Co.
Chunghwa Telecom Co., Ltd. provides bundled and value-added telecommunications services to business and residential customers in Taiwan. The company’s service offerings are categorized into three principal groups: fixed-line services, wireless services and Internet and data services. Fixed-line services are the company’s principal business activity. It provides local, domestic long-distance and international long-distance telephone services in Taiwan. Chunghwa also provides interconnection with its fixed-line network to other cellular and fixed-line operators. Wireless services offered by Chunghwa include cellular and paging services. Internet and data services offered by Chunghwa include asymmetrical digital subscriber line (ADSL) Internet access, Internet value-added services and wireless local area networks, leased line services, managed data services and Internet data center services.
About City Network, Inc.
City Network, Inc. designs, manufactures and markets a comprehensive line of broadband and wireless Internet access solutions and consumer electronic products. The Company’s product line ranges from the City Network HPNA device for the flourishing worldwide residential building and hospitality market to the simple DSL bridge/modem for the home and small business user. Currently, City Network Home PNA and xDSL broadband access equipment is widely deployed by major telecommunication carriers, ISPs, and System Integrators worldwide.
Safe Harbor under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company’s filings with the Securities and Exchange Commission. Nothing in this press release shall be construed as an offer to buy or sell any securities herein.
