Huawei Technologies Co., Ltd. ("Huawei"), a leader in providing next generation telecommunications networks for carriers around the world, announced that it has signed an Next Generation Network (NGN) transformation contract, worth of more than US$ 50 million, with CANTV (NYSE:VNT), the leading provider of telecommunications services in Venezuela.

Under the contract, Huawei will help CANTV to transfer its traditional analog network to the next generation network and convert the legacy voice traffic into IP, which will provide centralized call control, centralized service provisioning and centralized subscriber profiles. The network transformation will deploy Huawei U-SYS solution including soft switches, media gateways, and multi-service access nodes.

CANTV’s vision is to "improve Venezuelan people’s life quality by providing telecommunication solutions that exceed the expectation of clients", began in 2005 an aggressive network modernization aligned with the positive cycle of investment in the telecom industry and the positive economical cycle in Venezuela due to the high oil prices.

Since September 2005, CANTV has been deploying Huawei’s U-SYS NGN solution, reaching 5% of the total fixed subscriber base as at May 2006. After a successful integration with the legacy system and fast deployment, the U-SYS NGN network is running satisfactorily nationwide.

Miguel Benatuil, General Manager of Technology and Operations of CANTV, remarks: "This project is a quantum leap in our ability to provide telecom services to our customers and increment our voice and data portfolio. Huawei cost-effective solutions and commitment with our vision were the critical factors in selecting Huawei for the transformation of our PSTN platform. Our expectations are also very high and we believe Huawei is going to exceed them, incrementing the value that we are adding to our business with this project".

Mr. Xu Jin, representative of Huawei Technologies de Venezuela stated, "This is a significant milestone for us given the large scale of the NGN deployment in the international market. We are proud that CANTV trusts and shares our vision of enriching

people’s life through communications, and will work close with CANTV to offer better quality and advanced services improving the life of millions of Venezuelans"

In 2006 CANTV continues its aggressive plan to transform its fixed voice network which integrates the complete CANTV fixed subscriber base into the NGN service network, putting in place a future proof architecture with a clear migration path to the IMS.

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About Compañía Anónima Nacional Teléfonos de Venezuela (CANTV)

CANTV, a Venezuelan corporation, is the leading Venezuelan telecommunications services provider with nearly 3.2 million switched fixed access lines in service, nearly 6.6 million mobile subscribers and over 379 thousand broadband subscribers as of June 30, 2006. The Company’s principal strategic stockholder is a wholly-owned subsidiary of Verizon Communications Inc. with 28.5% of the capital stock. Other major stockholders include the Venezuelan Government with 6.6% of the capital stock (Class B Shares), employees, retirees and employee trusts which own 6.5% (Class C Shares) and the remaining 58.4% of the capital stock is held by public and other stockholders.

For more information, please refer to CANTV web sites http://www.cantv.com.ve

About Huawei Technologies

Huawei Technologies is a leader in providing next generation telecommunications networks for carriers around the world. The company is committed to providing innovative and customized products, services and solutions to create long-term value and potential growth for its customers. Huawei’s products and solutions are globally deployed, and its services are extended to over one billion users worldwide. Twenty-eight of the world’s top 50 operators have formed partnerships with Huawei today.

For more information, please visit http://www.huawei.com