Under the terms of the agreement, AsiaInfo will develop a BI system for Zhejiang Unicom which is designed to improve decision-making capabilities, efficiency and accuracy. AsiaInfo will also integrate historical data from China Unicom's existing GSM business with its recently acquired fixed-line and broadband network into a single, unified BI system. The BI system is expected to be equipped with data mining, data analysis and data summarization capabilities, which will provide China Unicom with detailed and up-to-date information to assist the company in making informed, real-time decisions.

AsiaInfo is a market leader in China's telecom BI market. AsiaInfo's BI systems currently support more than 260 million users and over 1.5 petabytes of data.

About AsiaInfo Holdings, Inc.

AsiaInfo Holdings, Inc. (Nasdaq: ASIA) is a leading provider of high-quality telecom software solutions and IT security products and services to some of China's largest enterprises as well as many small and medium sized companies in China. An established leader in the Chinese telecommunications industry, AsiaInfo became a prominent supplier of IT security products and services in China with the acquisition of Lenovo's non-telecom related IT services business in 2004.

Organized as a Delaware corporation, AsiaInfo began operations in the United States in 1993. The Company moved major operations to China in 1995 and played a significant role in the construction of the national backbones and provincial access networks for all of China's major national telecom carriers, including China Telecom, China Mobile, China Unicom and China Netcom. Since 1998, AsiaInfo has continued diversifying its product offerings and is now a major provider of telecom software solutions in China.

For more information about AsiaInfo, please visit http://www.asiainfo.com .

Safe Harbor Statement

The information contained in this document is as of November 25, 2008. AsiaInfo assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments.

This document contains forward-looking information about AsiaInfo's operating results and business prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: government telecommunications infrastructure and budgetary policy in China; our ability to maintain our concentrated customer base; the long and variable billing cycles for our products and services that can cause our revenues and operating results to vary significantly from period to period; our ability to meet our working capital requirements; our ability to retain our executive officers; our ability to attract and retain skilled personnel; potential liabilities we are exposed to because we extend warranties to our customers; risks associated with cost overruns and delays; our ability to develop or acquire new products or enhancements to our software products that are marketable on a timely and cost-effective basis; our ability to adequately protect our proprietary rights; the competitive nature of the markets we operate in; political and economic policies of the Chinese government. A further list and description of these risks, uncertainties, and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and in our periodic reports on Forms 10-Q and 8-K (if any) filed with the United States Securities and Exchange Commission and available at http://www.sec.gov .

    For investor and media inquiries, please contact:

    In China:
     Ms. Sheryl Zhang
     AsiaInfo Holdings, Inc.
     Tel:   +86-10-8216-6039
     Email: ir@asiainfo.com

     Mr. Andrew Keller
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-3112
     Email: andrew.keller@ogilvy.com

    In the United States:
     Mr. Thomas Smith
     Ogilvy Financial, New York
     Tel:   +1-212-880-5269
     Email: thomas.smith@ogilvypr.com

SOURCE AsiaInfo Holdings, Inc.

http://www.asiainfo.com

Under the terms of the agreement, AsiaInfo will develop new BSS systems which include Customer Relationship Management ("CRM"), Partnership Relationship Management ("PRM") and billing systems. The Company will integrate China Unicom's existing GSM business with its recently acquired fixed-line and broadband network into a single, unified system. The BSS systems are expected to support China Unicom's value-added services to increase the company's competitiveness and will assist in managing operations and monitoring the performance of China Unicom's business partners to ensure efficient and cohesive cooperation.

About AsiaInfo Holdings, Inc.

AsiaInfo Holdings, Inc. (Nasdaq: ASIA) is a leading provider of high- quality telecom software solutions and IT security products and services to some of China's largest enterprises as well as many small and medium sized companies in China. An established leader in the Chinese telecommunications industry, AsiaInfo became a prominent supplier of IT security products and services in China with the acquisition of Lenovo's non-telecom related IT services business in 2004.

Organized as a Delaware corporation, AsiaInfo began operations in the United States in 1993. The Company moved major operations to China in 1995 and played a significant role in the construction of the national backbones and provincial access networks for all of China's major national telecom carriers, including China Telecom, China Mobile, China Unicom and China Netcom. Since 1998, AsiaInfo has continued diversifying its product offerings and is now a major provider of telecom software solutions in China.

For more information about AsiaInfo, please visit http://www.asiainfo.com .

Safe Harbor Statement

The information contained in this document is as of November 20, 2008. AsiaInfo assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments.

This document contains forward-looking information about AsiaInfo's operating results and business prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: government telecommunications infrastructure and budgetary policy in China; our ability to maintain our concentrated customer base; the long and variable billing cycles for our products and services that can cause our revenues and operating results to vary significantly from period to period; our ability to meet our working capital requirements; our ability to retain our executive officers; our ability to attract and retain skilled personnel; potential liabilities we are exposed to because we extend warranties to our customers; risks associated with cost overruns and delays; our ability to develop or acquire new products or enhancements to our software products that are marketable on a timely and cost-effective basis; our ability to adequately protect our proprietary rights; the competitive nature of the markets we operate in; political and economic policies of the Chinese government. A further list and description of these risks, uncertainties, and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and in our periodic reports on Forms 10-Q and 8-K (if any) filed with the United States Securities and Exchange Commission and available at http://www.sec.gov .

    For investor and media inquiries, please contact:

    In China:
     Ms. Sheryl Zhang
     AsiaInfo Holdings, Inc.
     Tel:   +86-10-8216-6039
     Email: ir@asiainfo.com

     Mr. Andrew Keller
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-3112
     Email: andrew.keller@ogilvy.com

    In the United States:
     Mr. Thomas Smith
     Ogilvy Financial, New York
     Tel:   +1-212-880-5269
     Email: thomas.smith@ogilvypr.com

SOURCE AsiaInfo Holdings, Inc.

http://www.asiainfo.com

Expected next investor conference call information:
Conference Call Date: 10/30/2008
Conference Call Time: 8:00 PM
Conference Call URL: http://www.asiainfo.com/investor/events.shtml

Third Quarter 2008 Financial Results

Total revenue for the third quarter of 2008 was US$44.8 million, an increase of 38.4% year over year and 6.5% sequentially. Exceeding guidance, net revenue (Non-GAAP) for the third quarter of 2008 was US$42.7 million, an increase of 44.6% year over year and 24.2% sequentially. The year-over-year and sequential increases were mainly driven by strong uptake for the Company's software and service solutions, most notably in the China Telecom account. Total revenue and net revenue (Non-GAAP) were also boosted by a strong performance from the Company's Lenovo-AsiaInfo business unit, which was primarily the result of improved operations and seasonally strong sales in this division.

In the third quarter, AsiaInfo announced several significant contracts with China's major telecom carriers including contracts to upgrade wireless local area network and IP billing systems for the Northern Telecom division of China Telecom, to develop billing and customer relationship management systems for China Telecom's subsidiaries in Heilongjiang and Henan provinces, to develop an online charging system for China Telecom in Heilongjiang province and to develop business intelligence systems for China Telecom in Beijing municipality, and Henan and Heilongjiang provinces.

In the third quarter of 2008, gross margin was 51.8%, compared to 49.9% in the year-ago period and 45.3% in the previous quarter. The increase in gross margin was primarily due to a decrease in third party hardware sales and an increased contribution to revenue from high-margin software solutions. Gross profit as a percentage of net revenue (Non-GAAP) was 54.2% in the third quarter of 2008 compared to 54.6% in the year-ago period and 55.4% in the previous quarter. The Company noted that gross margin of net revenue (non- GAAP) has remained relatively stable for the last several quarters.

In the third quarter of 2008, the AsiaInfo Technologies business unit contributed 81.0% to total revenue and 81.9% to net revenue (Non-GAAP). Total revenue for the AsiaInfo Technologies business unit increased 32.8% year over year and decreased 1.3% sequentially to US$36.3 million. Net revenue (Non- GAAP) for the AsiaInfo Technologies business unit increased 42.4% year over year and 15.6% sequentially to US$35.0 million. The increases in net revenue (Non-GAAP) reflect strong uptake for the Company's software and service solutions, most notably in the China Telecom account.

In the third quarter of 2008, the Lenovo-AsiaInfo business unit contributed 19.0% to total revenue and 18.1% to net revenue (Non-GAAP). Total revenue for the Lenovo-AsiaInfo business unit increased 68.8% year over year and 60.3% sequentially to US$8.5 million. Net revenue (Non-GAAP) for the Lenovo-AsiaInfo business unit increased 55.2% year over year and 86.6% sequentially to US$7.8 million. The year-over-year increases reflect a concerted effort to improve operations in this division. Sequentially, the notable increases are mainly due to seasonality, as sales in the Lenovo-AsiaInfo business unit are typically stronger during the second half of the year. Please refer to the end of this press release for condensed segmented financial results for AsiaInfo's two business units.

Income from operations for the third quarter of 2008 was US$5.3 million, an increase of 68.9% year over year and 48.6% sequentially, primarily as a result of improving economies of scale and the Company's efforts to improve operational efficiency. Total operating expenses increased 37.5% year over year and 15.5% sequentially to US$17.9 million, including non-cash stock based compensation of US$1.1 million, which was allocated to each expense line. Sales and marketing expenses increased 38.2% year over year and 16.4% sequentially to US$9.6 million, mainly due to higher sales commission expenses accrued upon successfully breaking into new accounts. General and administrative expenses increased 29.5% year over year and decreased 7.3% sequentially to US$2.1 million. The year over year increase was mainly due to the aforementioned allocated non-cash stock based compensation in this quarter and government incentive funds the Company received in the third quarter of 2007. The sequential decrease was mainly the result of lower bad debt provisions as a result of improving accounts receivable collection. Research and development expenses increased 39.4% year over year and 24.3% sequentially to US$6.3 million, mainly reflecting an increase in headcount in line with the Company's strategy of continuing to invest in research and development capabilities to take advantage of future market opportunities.

Operating margin of total revenue was 11.8% for the third quarter of 2008, compared to 9.7% in the year-ago period and 8.5% in the previous quarter. Operating margin of net revenue (Non-GAAP) was 12.4% for the third quarter of 2008, compared to 10.6% in the year-ago period and 10.3% in the previous quarter. The year-over-year and sequential increases were mainly the result of the Company's efforts to improve operational efficiency as well as seasonally strong sales from the Lenovo-AsiaInfo business unit in the second half of the year.

Other income for the third quarter of 2008 was US$2.3 million, a decrease of 49.6% year over year and 29.6% sequentially. The year-over-year and sequential decreases were mainly due to decreased dividend income and gain on investments, which are based on the market performance. As of September 2008, AsiaInfo's total short-term investments amounted to US$34.8 million, which are recorded at market value. Changes in market value are reflected in other comprehensive income. As of September 30, 2008, AsiaInfo had unrecognized gains and unrecognized losses of US$0.6 million and US$4.0 million, respectively. Due to its strong cash position, AsiaInfo has no plans to liquidate its short-term investments in the near term. Given the various fiscal and monetary initiatives that have been enacted or indicated by governments worldwide, AsiaInfo does not consider the decline in fair value to be other than temporary at this time. The Company will continue to evaluate the condition of its short-term investments going forward.

In the third quarter of 2008, AsiaInfo recorded net income of US$6.1 million or US$0.13 per basic share, compared to US$6.3 million or US$0.14 per basic share in the year-ago period, which included a higher-than-normal dividend income of US$3.3 million or US$0.08 per basic share, and US$5.2 million or US$0.12 per basic share in the previous quarter.

Net income excluding share-based compensation expense, amortization, after-tax dividend income and gain on discontinued operations (net income (Non-GAAP))(Note 5) was US$7.6 million in the third quarter of 2008 or US$0.16 per basic share. Net income (Non-GAAP) in the year-ago period was US$4.8 million or US$0.11 per basic share. Net income (Non-GAAP) in the previous quarter was US$6.2 million or US$0.14 per basic share. Net income (Non-GAAP) increased 58.0% year over year and 22.2% sequentially.

As of September 30, 2008, AsiaInfo had cash and cash equivalents and restricted cash totaling US$175.8 million and short-term investments totaling US$34.8 million. Operating cash flow in the third quarter of 2008 was a net inflow of approximately US$0.72 million.

Fourth Quarter 2008 Guidance

AsiaInfo expects fourth quarter 2008 net income from continuing operations per basic share to be in the range of US$0.14 to US$0.16. AsiaInfo expects net revenue (Non-GAAP) to be in the range of US$47 million to US$48 million, an increase of 34% to 37% year over year. Due to the current global market conditions, fourth quarter 2008 guidance includes assumptions of lower investment income. The Company also noted that its effective tax rate in the fourth quarter of 2007 was -1.4% due to a tax refund recognized in that period. The Company noted that it has not yet received approval for our "New Technology Enterprise" and "Advanced Technology Enterprise" status, but that it expects to receive these statuses and to recognize a tax benefit at that time.

    Notes:
    (1) Compared to the same time period in the previous year.
    (2) Net revenue (Non-GAAP), a non-GAAP measure, represents total
        revenue net of third-party hardware costs. A reconciliation of
        net revenue (Non-GAAP) to GAAP revenue is provided at the end of
        this press release.
    (3) Operating margin of total revenue is operating income divided by
        total revenue.
    (4) Operating margin of net revenue (Non-GAAP) is operating margin
        divided by net revenue (Non-GAAP).
    (5) Net income (Non-GAAP) and net income (Non-GAAP) per share
        measures exclude share-based compensation expenses,
        amortization expenses of acquired intangible assets, after-tax
        dividend income, gain on discontinued operations, and gain on
        settlement of escrow. A reconciliation of these non-GAAP
        measures to the most comparable GAAP measures is provided at
        the end of the press release.



                             ASIAINFO HOLDINGS, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
       (Amounts in thousands of US$, except shares and per share amounts)

                                     Three Months Ended      Nine Months
                                        September 30,    Ended September 30,
                                       2008       2007       2008       2007
    Revenues:
    Software products and solutions $37,479    $25,173    $94,631    $67,179
    Service                           4,754      4,247     12,304     11,827
    Third party hardware              2,562      2,945     14,924     12,984
    Total revenues                   44,795     32,365    121,859     91,990

    Cost of revenues:
    Software products and solutions  17,890     11,510     42,706     30,599
    Service                           1,667      1,912      5,085      5,588
    Third party hardware              2,052      2,798     13,992     12,335
    Total cost of revenues           21,609     16,220     61,783     48,522
    Gross profit                     23,186     16,145     60,076     43,468

    Operating expenses:
    Sales and marketing               9,556      6,916     25,663     19,639
    General and administrative        2,084      1,609      6,941      6,027
    Research and development          6,253      4,486     15,940     12,733
    Total operating expenses         17,893     13,011     48,544     38,399
    Gain on settlement of escrow         --         --         --      2,734
    Income from operations            5,293      3,134     11,532      7,803

    Other income (expenses):
    Interest income                   1,151      1,091      3,433      3,369
    Dividend income                     230      3,348        533      3,876
    Gain on investments                 954        123      4,487        704
    Other (expenses) net                (43)       (12)      (573)       (32)
    Total other income, net           2,292      4,550      7,880      7,917

    Income before provision for
     income taxes and discontinued
     operations                       7,585      7,684     19,412     15,720
    Minority interests                   (4)        --         (4)        --
    Provision for income taxes        1,490      1,412      3,817      1,999
    Income from continuing
     operations                       6,099      6,272     15,599     13,721
    Income from discontinued
     operations                          --         --        980      1,445
    Net income                       $6,099     $6,272    $16,579    $15,166

    Income from continuing
     operations per share:
    Basic                             $0.13      $0.14      $0.35      $0.32
    Diluted                           $0.13      $0.14      $0.33      $0.31

    Income from discontinued
     operations per share:
    Basic                                --         --      $0.02      $0.03
    Diluted                              --         --      $0.02      $0.03

    Net income per share
    Basic                             $0.13      $0.14      $0.37      $0.35
    Diluted                           $0.13      $0.14      $0.35      $0.34

    Weighted average shares used
     in computation:

    Basic                        45,731,067 43,735,575 45,208,453 43,374,659
    Diluted                      47,850,187 45,272,832 47,095,515 45,006,094



                           ASIAINFO HOLDINGS, INC.
              CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
      (Amounts in thousands of US$, except share and per share amounts)

                                                              As at
                                                    September 30, December 31,
                                                         2008       2007(1)

    ASSETS:
    Current Assets:
    Cash and cash equivalents                           $162,293    $148,834
    Restricted cash                                       13,505      16,026
    Short term investments                                34,817      49,735
    Accounts receivable, net (net of
     allowances of $2,590 and $2,427 as of
     September 30, 2008 and December 31,
     2007, respectively)                                  57,708      45,233
    Inventories                                           11,220       8,023
    Other receivable                                       3,386       3,426
    Deferred income taxes-current                          3,227       1,693
    Prepaid expenses and other current
     assets                                                7,797       6,526
    Total current assets                                $293,953    $279,496

    Long term investment                                   6,743       1,911
    Property and equipment, net                            2,730       2,344
    Other acquired intangible assets, net                  3,374       3,979
    Deferred income tax assets- non-current                1,032       1,032
    Goodwill                                              20,743      19,707
    Total Assets                                        $328,575    $308,469

    LIABILITY AND STOCKHOLDERS EQUITY
    Current Liabilities:
    Accounts payable                                     $18,799     $23,095
    Accrued expenses                                      13,682      12,671
    Deferred revenue                                      37,871      29,093
    Accrued employee benefits                             22,457      20,724
    Other payables                                         4,291       5,651
    Income taxes payable                                     449       2,310
    Other taxes payable                                    5,694       4,218
    Deferred income tax liability-current                     --       1,977
    Total current liabilities                           $103,243     $99,739

    Unrecognized tax benefits -- non-current               1,390         943
    Total liabilities                                   $104,633    $100,682

    Minority interests                                        69          --

    Stockholders' equity:
    Common stock                                            $462        $450
    Additional paid-in capital                           214,292     207,865
    Treasury stock, at cost                               (4,561)     (1,953)
    Statutory reserve                                     14,820      14,820
    Accumulated deficit                                  (15,386)    (31,965)
    Accumulated other comprehensive income                14,246      18,570
    Total stockholders' equity                          $223,873    $207,787
    Total Liabilities and Stockholders' Equity          $328,575    $308,469


    (1) December 31, 2007 balances were extracted from audited financial
        statements.



                           ASIAINFO HOLDINGS, INC.
          CONDENSED INFORMATION FOR REPORTABLE SEGMENTS (UNAUDITED)
                        (Amounts in thousands of US$)

                                             Three Months Ended
                                  September 30, 2008     September 30, 2007
                               AsiaInfo  Lenovo-      AsiaInfo  Lenovo-
                                Techno- AsiaInfo       Techno- AsiaInfo
                                logies           Total  logies          Total
    Revenues:
    Software products and
     solutions                  $30,297 $7,182 $37,479 $20,282 $4,891 $25,173
    Service                       4,624    130   4,754   4,144    103   4,247
    Third party hardware          1,367  1,195   2,562   2,900     45   2,945
    Total revenues               36,288  8,507  44,795  27,326  5,039  32,365

    Cost of revenues:
    Software products and
     solutions                   15,223  2,667  17,890   9,752  1,758  11,510
    Service                       1,629     38   1,667   1,706    206   1,912
    Third party hardware          1,298    754   2,052   2,755     43   2,798
    Total cost of revenues       18,150  3,459  21,609  14,213  2,007  16,220

    Gross profit                 18,138  5,048  23,186  13,113  3,032  16,145

    Business unit expenses:
    Sales and marketing           6,224  3,332   9,556   4,592  2,324   6,916
    General and administrative     (265)   119    (146)    388    (10)    378
    Research and development      5,351    902   6,253   3,988    498   4,486
    Total business unit expenses 11,310  4,353  15,663   8,968  2,812  11,780
    Contribution profit (loss)   $6,828   $695  $7,523  $4,145   $220  $4,365
    Corporate general and
     administration                              2,230                  1,231
    Operating profit                            $5,293                 $3,134


    (cont.)


                                                    Three Months Ended
                                                       June 30 2008
                                           AsiaInfo       Lenovo
                                          Technologies   -AsiaInfo    Total
    Revenues:
    Software products and solutions          $25,875     $4,138     $30,013
    Service                                    4,042        167       4,209
    Third party hardware                       6,834      1,002       7,836
    Total revenues                            36,751      5,307      42,058

    Cost of revenues:
    Software products and solutions           12,230      1,430      13,660
    Service                                    1,636         68       1,704
    Third party hardware                       6,492      1,152       7,644
    Total cost of revenues                    20,358      2,650      23,008

    Gross profit                              16,393      2,657      19,050

    Business unit expenses:
    Sales and marketing                        5,956      2,256       8,212
    General and administrative                   101         34         135
    Research and development                   4,465        564       5,029
    Total business unit expenses              10,522      2,854      13,376
    Contribution profit (loss)                $5,871      $(197)     $5,674
    Corporate general and administration                              2,113
    Operating profit                                                 $3,561

Third Quarter 2008 Conference Call Details

AsiaInfo management will hold a conference call at 5:00 p.m. Pacific Time / 8:00 p.m. Eastern Time on October 30, 2008 (8:00 a.m. Beijing/Hong Kong Time on October 31, 2008). On the call, management will discuss results and highlights from the quarter and answer questions.

    The dial-in numbers for the conference call are as follows:

     US Toll Free: +1-866-549-1292
     China Toll Free: 8007-011-223
     Hong Kong and International: +852-3005-2050

     The passcode for the call is 408313.

A replay will be available until 8:00 p.m. Pacific Time on November 30, 2008 by dialing one of the following numbers:

     U.S Toll Free: +1-866-753-0743
     China Toll Free: 8008-697-680
     Hong Kong and International: +852-3005-2020

     The passcode for the replay is 134936.

Additionally, a live and archived web cast of this call will be available on the Investor Relations section of the AsiaInfo web site at http://www.asiainfo.com .

About AsiaInfo Holdings, Inc.

AsiaInfo Holdings, Inc. (Nasdaq: ASIA) is a leading provider of high- quality software and customer solutions to many of China's largest enterprises. In addition to providing software and customer solutions to China's telecom carriers, the Company also offers a wide range of security products and services to small, medium and large sized Chinese enterprises across multiple vertical industries.

Organized as a Delaware corporation, AsiaInfo began operations in the United States in 1993. The Company moved its major operations to China in 1995 and played a significant role in the construction of the national Internet backbones and provincial access networks for all of China's major national telecom carriers, including China Telecom, China Mobile, China Unicom and China Netcom. Since 1998, AsiaInfo has continued to diversify its product offerings and is now a major provider of enterprise software solutions in China.

    For more information about AsiaInfo, please visit http://www.asiainfo.com
.

Reconciliation of Non-GAAP Measures

This earnings release contains presentations of the following "Non-GAAP financial measures" as defined by applicable U.S. securities regulations. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. The Non-GAAP financial measures are provided as additional information to help both management and investors compare business trends among different reporting periods on a consistent and more meaningful basis and enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP measures have limitations, however, because they do not include all items of income and expenses that impact the Company's operations. Management compensates for these limitations by also considering the Company's GAAP results. The non- GAAP financial measures the Company uses are not prepared in accordance with, and should not be considered an alternative to, measurement required by GAAP and should not be considered measures of the Company's liquidity. Pursuant to relevant regulatory requirements, we are providing the following reconciliations of the Non-GAAP financial measures to the nearest comparable GAAP measures.

(1) Net revenue (Non-GAAP)

AsiaInfo's net revenue (Non-GAAP) represents total revenue net of hardware costs that are passed through to our customers. We believe total revenues net of hardware costs more accurately reflects our core business, which is the provision of software solutions and services, and provides transparency to our investors. It is also the same measure used by our management to evaluate the competitiveness and development of our business.

      Reconciliation of net revenues (Non-GAAP) to GAAP total revenues


                                2008 Q3                     2007 Q3
                       AsiaInfo    Lenovo           AsiaInfo    Lenovo
                     Technologies AsiaInfo Total  Technologies AsiaInfo Total
                                        (in US dollar thousands)

    Net Revenue
     (Non-GAAP)          34,990    7,753  42,743      24,571     4,996 29,567
    Third Party
     Hardware Costs       1,298      754   2,052       2,755        43  2,798
    Total Revenues       36,288    8,507  44,795      27,326     5,039 32,365


                                                    2008 Q2
                                     AsiaInfo        Lenovo
                                   Technologies     AsiaInfo        Total
                                         (in US dollar thousands)

    Net Revenue (Non-GAAP)            30,259          4,155        34,414
    Third Party Hardware Costs         6,492          1,152         7,644
    Total Revenues                    36,751          5,307        42,058



    (2) Net income (Non-GAAP)

Net income (Non-GAAP) excludes share-based compensation expenses, amortization of acquired intangible assets, after-tax dividend income, gain on discontinued operations, and gain on settlement of escrow. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain expenses and income that may not be indicative of our operating performance. Management uses the net income (Non-GAAP) measure to gain a better understanding of the Company's comparative operating performance from period-to-period and as a basis of planning and forecasting future periods. Management believes net income (Non-GAAP) measure, when read in conjunction with the Company's GAAP net income measure and other GAAP financials, provides useful information to investors by offering: a) the ability to make more meaningful period-to-period comparisons of the Company's on-going operating results; b) the ability to better identify trends in the Company's underlying business and perform related trend analysis; c) a better understanding of how management plans and measures the Company's underlying business; and d) an easier way to compare the Company's most recent results of operations against investor and analyst financial models.

          Reconciliation of net income (Non-GAAP) to GAAP net income

                                        Three Months    2008    Nine Months
                                       Ended Sept. 30    Q2    Ended Sept.30
                                         2008   2007             2008   2007

                                         (in US dollar thousands)

    GAAP net income                     6,099  6,272   5,221   16,579 15,166
    Adjustments:
     -- Share based compensation        1,303    741     649    2,643  2,592
     -- Amortization of acquired
         intangible assets                385    296     400    1,231  1,371
     -- Gain on discontinued operations    --     --      --     (980)(1,445)
     -- Gain on settlement of escrow       --     --      --       -- (2,734)
     -- Dividend income, net of tax      (230)(2,526)    (84)    (533)(3,054)
    Non-GAAP net income                 7,557  4,783   6,186   18,940 11,896



    (3) Net Income (Non-GAAP) Per Basic Share

Net income (Non-GAAP) per share is calculated based on net income (Non- GAAP). Like net income (Non-GAAP), net income (Non-GAAP) per share excludes share-based compensation expenses, amortization of acquired intangible assets, after-tax dividend income, gain on discontinued operations, and gain on settlement of escrow. Shares outstanding used in the computation of net income per share were the same as those used in the computation of net income (Non- GAAP) per share. Management believes that net income (Non-GAAP) per share, when used in conjunction with the Company's GAAP net income per share, provides useful information to investors for the same reasons discussed above regarding net income (Non-GAAP). In addition, net income (Non-GAAP) per share allows investors to evaluate the Company's operating performance from period to period on a per share basis, thus providing a useful basis for assessing the Company's value on a per share basis.

Reconciliation of net income (Non-GAAP) per share to GAAP net income per share

                                        Three Months    2008    Nine Months
                                       Ended Sept. 30    Q2    Ended Sept.30
                                         2008   2007             2008   2007
                                              (in US dollar thousands)

    GAAP net income Per Basic Share      0.13   0.14    0.12     0.37   0.35
    Adjustments:
     -- Share based compensation         0.03   0.02    0.01     0.06   0.06
     -- Amortization of acquired
         intangible assets               0.01   0.01    0.01     0.03   0.03
     -- Gain on discontinued operations    --     --      --    (0.02) (0.03)
     -- Gain on settlement of escrow       --     --      --       --  (0.06)
     -- Dividend income, net of tax     (0.01) (0.06)     --    (0.01) (0.07)
    Non-GAAP net income Per Basic Share  0.16   0.11    0.14     0.43   0.28

Cautionary Note Regarding Forward-Looking Statements

The information contained in this document is as of October 30, 2008. AsiaInfo assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments.

This document contains forward-looking information about AsiaInfo's operating results and business prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: government telecommunications infrastructure and budgetary policy in China; our ability to maintain our concentrated customer base; the long and variable billing cycles for our products and services that can cause our revenues and operating results to vary significantly from period to period; our ability to meet our working capital requirements; our ability to retain our executive officers; our ability to attract and retain skilled personnel; potential liabilities we are exposed to because we extend warranties to our customers; risks associated with cost overruns and delays; our ability to develop or acquire new products or enhancements to our software products that are marketable on a timely and cost-effective basis; our ability to adequately protect our proprietary rights; the competitive nature of the markets we operate in; and political and economic policies of the Chinese government. A further list and description of these risks, uncertainties, and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and in our periodic reports on Forms 10-Q and 8-K filed with the United States Securities and Exchange Commission and available at www.sec.gov .

    For investor and media inquiries, please contact:

    In China:
     Sheryl Zhang
     AsiaInfo Holdings, Inc.
     Tel:   +86-10-8216-6039
     Email: ir@asiainfo.com

     Andrew Keller
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-3112
     Email: andrew.keller@ogilvy.com

    In the United States:
     Mr. Thomas Smith
     Ogilvy Financial, New York
     Tel:   +1-212-880-5269
     Email: thomas.smith@ogilvypr.com

SOURCE AsiaInfo Holdings, Inc.

http://www.asiainfo.com