AsiaInfo Reports Third Quarter 2009 Financial Results

                -- Total revenue grows 42% year-over-year

-- Meeting guidance, net revenue (non-GAAP)(1) increases to US$61 million,
                        growing 42% year-over-year

 -- Exceeding guidance, income from continuing operations per basic share
                                is US$0.20



BEIJING and SANTA CLARA, Calif., Oct. 28 /PRNewswire-Asia-FirstCall/ -- AsiaInfo Holdings, Inc. (NASDAQ:ASIA) ("AsiaInfo" or the "Company"), a leading provider of telecom software solutions and IT security products and services in China, today announced financial results for the third quarter of 2009.

"This past quarter marks another period of strong growth in which we met net revenue and exceeded EPS guidance," said Steve Zhang, AsiaInfo's president and chief executive officer.  "This is especially notable as it comes on top of nearly 45% net revenue growth in the third quarter of 2008.  During the quarter, we also took our first step into Southeast Asia by establishing a joint venture in Singapore, which will contribute sales and marketing expertise and help us cultivate strong partnerships in the region.  In addition, in early October, we announced our acquisition of SmartCall, which provides us with the resources and expertise to fully execute end-to-end, targeted marketing campaigns.  Building off of our leading base of business intelligence installations and consulting services, our SmartCall business has strong potential to quickly expand from solely operating in Sichuan province to a number of provinces in China.

Mr. Zhang concluded, "Looking forward, we are confident we will finish 2009 on a strong note and see abundant opportunities across all three of China's telecom operators in the coming year.  In addition, our focus on delivering robust organic growth while remaining disciplined in our overseas expansion strategy will help us to deliver long-term sustainable growth."

Third Quarter 2009 Financial Results

Total revenues for the third quarter of 2009 were US$63.5 million, an increase of 41.8% year-over-year and 8.5% sequentially.  Meeting guidance, net revenue (non-GAAP) for the third quarter of 2009 was US$60.9 million, an increase of 42.4% year-over-year and 14.1% sequentially.  The year-over-year and sequential increases were primarily driven by strong performance among all three major customers in the telecom business.

During the quarter, AsiaInfo announced contracts with four China Mobile subsidiaries to upgrade BOSS Systems to NG-BOSS, six China Mobile subsidiaries to upgrade China Mobile Business Intelligence Systems to NG-BASS and a tender win to build P2P SMS Settlement System for China Mobile headquarters.  The Company also signed a contract with China Unicom to build out a Device Management System that will allow China Unicom to remotely diagnose and manage mobile devices and contracts to integrate mobile and fixed-line Business Support Systems ("BSS") for China Telecom in Heilongjiang and Henan provinces. During the quarter, AsiaInfo also established a JV with Singapore-based Alpha Growth International and at the beginning of October, acquired a majority stake in an outbound calling services company called SmartCall Holdings, Ltd.

Gross margin for the quarter was 54.6%, compared to 51.8% in the year-ago period and 49.1% in the previous quarter.  The year-over-year and sequential increases in gross margin were primarily due to a strong contribution from higher-margin software solutions and services.  Gross profit as a percentage of net revenue (non-GAAP) was 57.0% in the third quarter of 2009, compared to 54.2% in the year-ago period and 53.9% in the previous quarter.  The Company noted that gross profit as a percentage of net revenue (non-GAAP) has remained relatively stable, near 55% for the last several quarters.

In the third quarter of 2009, the AsiaInfo Technologies business unit, which focuses on telecommunications software and services, contributed 82.7% and 84.5% to total revenue and net revenue (non-GAAP), respectively.  Total revenue for the AsiaInfo Technologies business unit increased 44.8% year-over-year and slightly decreased 0.3% sequentially to US$52.6 million. Net revenue (non-GAAP) for the AsiaInfo Technologies business unit increased 47.0% year-over-year and 7.3% sequentially to US$51.4 million.  The increases in net revenue (non-GAAP) mainly reflect an increase in demand for the Company's software and service solutions among the three major telecom customers in a highly competitive market and an increasing number of contracts to upgrade and maintain existing installations.

In the third quarter of 2009, the Lenovo-AsiaInfo business unit, which focuses on IT security products and services, contributed 17.3% to total revenue and 15.5% to net revenue (non-GAAP).  Total revenue for the Lenovo-AsiaInfo business unit increased 29.0% year-over-year and 87.0% sequentially to US$11.0 million. Net revenue (non-GAAP) for the Lenovo-AsiaInfo business unit increased 21.7% year-over-year and 73.3% sequentially to US$9.4 million. The year-over-year increase was mainly due to several major high-margin contracts signed with government agencies and the sequential increase was partially due to seasonality, as sales in the Lenovo-AsiaInfo business unit are typically weakest in the first half of each year.  Please refer to the end of this press release for condensed segmented financial results for AsiaInfo's two business units.

Total operating expenses increased 36.9% year-over-year and 9.5% sequentially to US$24.5 million. Sales and marketing expenses increased 17.4% year-over-year and 13.0% sequentially to US$11.2 million.  The year-over-year and sequential increases were mainly due to higher sales commission expenses incurred upon signing new contracts.  General and administrative expenses increased 81.0% year-over-year and 3.3% sequentially to US$3.8 million.  The year-over-year increase was largely the result of increases in share-based compensation related to the performance stock unit awards granted to key employees on March 16, 2009.  Research and development expenses increased 73.4% year-over-year and 23.3% sequentially to US$10.8 million.  The Company noted that the increase in R&D expenses is in line with its strategy of investing in the research and development of world-class products.

Income from operations for the third quarter of 2009 was US$10.2 million, an increase of 92.7% year-over-year and 59.1% sequentially.  Operating margin of total revenue(2) was 16.0% for the third quarter of 2009, compared to 11.8% in the year-ago period and 10.9% in the previous quarter.  Operating margin of net revenue (non-GAAP)(3) was 16.8% for the third quarter of 2009, compared to 12.4% in the year-ago period and 12.0% in the previous quarter.  The year-over-year margin improvement was mainly the result of improving economies of scale and the Company's continued efforts to improve operational efficiency.

Other income for the third quarter of 2009 was US$527 thousand, a decrease of 77.0% from US$2.3 million in the year-ago period and a decrease of 70.0% from US$1.8 million in the previous quarter.  The year-over-year decrease was largely the result of lower investment gains as well as lower interest rates in the third quarter of 2009, which resulted in lower interest income.  The sequential decrease was the result of the sale of certain short-term investments during the second quarter of 2009, which realized a gain on investments of US$1.2 million.

In the third quarter of 2009, AsiaInfo recorded net income attributable to AsiaInfo Holdings, Inc. of US$9.1 million, or US$0.20 per basic share, compared to US$6.1 million, or US$0.13 per basic share, in the year-ago period and US$7.2 million, or US$0.16 per basic share, in the previous quarter.

Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP)(4) was US$13.0 million in the third quarter of 2009 or US$0.29 per basic share.  Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) in the year-ago period was US$7.6 million or US$0.16 per basic share. Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) in the previous quarter was US$11.4 million or US$0.26 per basic share.  Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) increased 71.6% year-over-year and 14.0% sequentially.

As of September 30, 2009, AsiaInfo had cash and cash equivalents and restricted cash totaling US$195.8 million and short-term investments totaling US$40.0 million.  Operating cash flow in the third quarter of 2009 was a net inflow of US$9.5 million.

Fourth Quarter 2009 Guidance

AsiaInfo expects fourth quarter 2009 net income from continuing operations per basic share to be in the range of US$0.28 to US$0.29, an increase of 460% to 480% year-over-year.  Please note that in the fourth quarter of 2008, there was a US$0.15 per basic share of impairment loss on investment.  The Company expects net revenue (non-GAAP) to be in the range of US$70 million to US$72 million, an increase of 37% to 40% year-over-year.

  (1) 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.
  (2) Operating margin of total revenue is operating income divided by total
      revenue.
  (3) Operating margin of net revenue (non-GAAP) is operating income divided
      by net revenue (non-GAAP).
  (4) Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) and net
      income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share
      measures exclude share-based compensation expenses, amortization of
      acquired intangible assets, impairment loss on investment, after-tax
      dividend income and gain on discontinued operations. A reconciliation
      of these non-GAAP measures to the most directly 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 Ended
                               September 30,               September 30,
                            2009           2008         2009          2008
  Revenues:
    Software products
     and solutions        $54,882        $37,479      $144,470       $94,631
    Service                 5,848          4,754        16,778        12,304
    Third party
     hardware               2,803          2,562        11,829        14,924
  Total revenues           63,533         44,795       173,077       121,859

  Cost of revenues:
    Software products
     and solutions         24,006         17,890        64,829        42,706
    Service                 2,161          1,667         6,058         5,085
    Third party
     hardware               2,673          2,052        11,199        13,992
  Total cost of
   revenues                28,840         21,609        82,086        61,783
    Gross profit           34,693         23,186        90,991        60,076

  Operating expenses:
    Sales and
     marketing             11,223          9,556        31,689        25,663
    General and
     administrative         3,773          2,084        10,991         6,941
    Research and
     development           10,842          6,253        26,849        15,940
    Government
     grant                 (1,342)            --        (1,342)           --
  Total operating
   expenses                24,496         17,893        68,187        48,544

  Income from
   operations              10,197          5,293        22,804        11,532

  Other income:
    Interest income           540          1,151         1,698         3,433
    Dividend income             4            230           178           533
    Gain from sales
     of short-term
     investments               --            954         1,210         4,587
    Other expenses,
     net                      (17)           (43)          (31)         (573)
  Total other income,
   net                        527          2,292         3,055         7,880

  Income before
   provision for
   income taxes and
   discontinued
   operations              10,724          7,585        25,859        19,412
  Income taxes
   expense                  1,646          1,490         3,793         3,817
  Income from
   continuing
   operations               9,078          6,095        22,066        15,595
  Income from
   discontinued
   operations                  --             --            --           980
  Net income                9,078          6,095        22,066        16,575
   Less: Net
    income (loss)
    attributable to
    the noncontrolling
    interests                  13             (4)            6            (4)
  Net income
   attributable to
   AsiaInfo Holdings,
   Inc.                    $9,065          6,099        22,060        16,579
  Earnings Per Share:
  Income from
   continuing
   operations
   attributable to
   AsiaInfo Holdings,
   Inc. common
   stockholders:
      Basic                 $0.20          $0.13         $0.49         $0.35
      Diluted               $0.19          $0.13         $0.48         $0.33

  Income from
   discontinued
   operations
   attributable to
   AsiaInfo Holdings,
   Inc. common
   stockholders:
      Basic                    --             --            --         $0.02
      Diluted                  --             --            --         $0.02

  Net income
   attributable to
   AsiaInfo Holdings,
   Inc. common
   stockholders:
      Basic                 $0.20          $0.13         $0.49         $0.37
      Diluted               $0.19          $0.13         $0.48         $0.35

  Weighted average
   shares used in
   computation:
      Basic            45,772,678     45,731,067    44,629,386    45,208,453
      Diluted          46,627,469     47,850,187    45,918,502    47,095,515



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

                                                             As of
                                                      Sept 30,    Dec 31,
                                                        2009       2008(1)
  ASSETS:
  Current Assets:
  Cash and cash equivalents                           $184,219    $172,119
  Restricted cash                                       11,551      12,510
  Short term investments                                40,021      28,633
  Accounts receivable, net (net of
   allowances of $2,703 and $2,605 as of
   September 30, 2009 and December 31,
   2008, respectively)                                 100,144      52,011
  Inventories                                            8,572      12,322
  Other receivable                                       3,423       2,813
  Deferred income taxes-current                          3,244       3,334
  Prepaid expenses and other current assets              7,649       5,425

  Total current assets                                $358,823    $289,167

  Long term investment                                   4,696       4,696
  Property and equipment, net                            2,992       2,887
  Other acquired intangible assets, net                  2,314       3,008
  Deferred income tax assets - non-current               2,630       2,671

  Goodwill                                              21,141      20,725
  Total Assets                                        $392,596    $323,154

  LIABILITY AND STOCKHOLDERS' EQUITY
  Current Liabilities:
  Accounts payable                                      35,873      13,835
  Accrued expenses                                      16,436      14,235
  Deferred revenue                                      36,582      44,414
  Accrued employee benefits                             32,308      27,570
  Other payables                                         6,111       5,288
  Income taxes payable                                   2,734         646
  Other taxes payable                                    6,234       6,311
  Deferred income tax liability-current                    742         934
  Total current liabilities                           $137,020    $113,233

  Unrecognized tax benefits - non-current                2,159       1,326

  Other long term liabilities                              135         135
  Total liabilities                                   $139,314    $114,694

  Stockholders' equity:
  Common stock                                             496         464
  Additional paid-in capital                           237,337     215,948
  Treasury stock, at cost                              (27,749)    (27,749)
  Statutory reserve                                     17,212      17,212
  Retained earnings (Accumulated deficit)                6,494     (15,566)

  Accumulated other comprehensive income                19,428      18,093
  Total AsiaInfo holding stockholders' equity         $253,218    $208,402

  Non controlling interest(2)                               64          58
  Total stockholders' equity                           253,282     208,460
  Total Liabilities and Stockholders' Equity          $392,596    $323,154


  (1) December 31, 2008 balances were extracted from audited financial
      statements.
  (2) Amount in relation to noncontrolling interest, formerly named minority
      interest, as of December 31, 2008 is reclassified in accordance with
      FASB Statement No. 160, Noncontrolling Interests in Consolidated
      Financial Statements, which was adopted by the Company on January 1,
      2009.



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

                                                Three Months Ended
                                                  Sept 30, 2009
                                         AsiaInfo     Lenovo-
                                       Technologies  AsiaInfo      Total
  Revenues:
  Software products and solutions          $45,660     $9,222     $54,882
  Service                                    5,703        145       5,848
  Third party hardware                       1,193      1,610       2,803
  Total revenues                            52,556     10,977      63,533

  Cost of revenues:
  Software products and solutions           21,217      2,789      24,006
  Service                                    2,074         87       2,161
  Third party hardware                       1,133      1,540       2,673
  Total cost of revenues                    24,424      4,416      28,840

  Gross profit                              28,132      6,561      34,693

  Business unit expenses:
  Sales and marketing                        8,531      2,692      11,223
  General and administrative                   614       (143)        471
  Research and development                   8,162      2,680      10,842
  Government grant                          (1,342)        --      (1,342)
  Total business unit expenses              15,965      5,229      21,194

  Contribution profit (loss)               $12,167     $1,332     $13,499
  Corporate general and administration                              3,302
  Operating profit                                                $10,197


                                               Three Months Ended
                                                  Sept 30, 2008
                                         AsiaInfo     Lenovo-
                                       Technologies  AsiaInfo      Total
  Revenues:
  Software products and solutions          $30,297     $7,182     $37,479
  Service                                    4,624        130       4,754
  Third party hardware                       1,367      1,195       2,562
  Total revenues                            36,288      8,507      44,795

  Cost of revenues:
  Software products and solutions           15,223      2,667      17,890
  Service                                    1,629         38       1,667
  Third party hardware                       1,298        754       2,052
  Total cost of revenues                    18,150      3,459      21,609

  Gross profit                              18,138      5,048      23,186

  Business unit expenses:
  Sales and marketing                        6,224      3,332       9,556
  General and administrative                  (265)       119        (146)
  Research and development                   5,351        902       6,253
  Government grant                              --         --          --
  Total business unit expenses              11,310      4,353      15,663

  Contribution profit (loss)                $6,828       $695      $7,523
  Corporate general and administration                              2,230
  Operating profit                                                 $5,293


                                                Three Months Ended
                                                   Jun 30, 2009
                                         AsiaInfo     Lenovo-
                                       Technologies  AsiaInfo      Total
  Revenues:
  Software products and solutions          $41,776     $5,375     $47,151
  Service                                    5,883         48       5,931
  Third party hardware                       5,039        447       5,486
  Total revenues                            52,698      5,870      58,568

  Cost of revenues:
  Software products and solutions           20,275      2,334      22,609
  Service                                    1,892         75       1,967
  Third party hardware                       4,786        424       5,210
  Total cost of revenues                    26,953      2,833      29,786

  Gross profit                              25,745      3,037      28,782

  Business unit expenses:
  Sales and marketing                        7,569      2,360       9,929
  General and administrative                   727        -78         649
  Research and development                   7,787      1,005       8,792
  Government grant                              --         --          --
  Total business unit expenses              16,083      3,287      19,370

  Contribution profit (loss)                $9,662      ($250)     $9,412
  Corporate general and administration                              3,003
  Operating profit                                                 $6,409



  Third Quarter 2009 Conference Call Details


AsiaInfo management will hold an earnings conference call at 5:00 p.m. Pacific Time / 8:00 p.m. Eastern Time on October 28, 2009 (8:00 a.m. Beijing/Hong Kong Time on October 29, 2009).  Management will discuss results and highlights of the quarter and answer questions from investors.

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

  U.S. Toll Free: [phone]
  China Local Number: 400-681-6949
  Hong Kong and International: [phone]

  The passcode for the call is 408313#.



A replay of the call will be available until 7:00 p.m. Eastern Time on November 29, 2009 by dialing one of the following numbers:

  U.S. Toll Free: [phone]
  China Toll Free: 800-869-7680
  Hong Kong and International: [phone]

  The passcode for the replay is 134936#.



Additionally, a live and archived webcast of this call will be available on the Investor Relations section of the AsiaInfo website 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 presents 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 measurements 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 most directly 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

                                                     2009 Q3
                                          AsiaInfo      Lenovo-
                                        Technologies   AsiaInfo     Total
                                            (in thousands of US dollars)
  Net Revenue (Non-GAAP)                    51,423       9,437      60,860
  Third Party Hardware Costs                 1,133       1,540       2,673
  Total Revenues                            52,556      10,977      63,533


                                                     2008 Q3
                                          AsiaInfo      Lenovo-
                                        Technologies   AsiaInfo     Total
                                            (in thousands of US dollars)

  Net Revenue (Non-GAAP)                    34,990      7,753      42,743
  Third Party Hardware Costs                 1,298        754       2,052
  Total Revenues                            36,288      8,507      44,795


                                                     2009 Q2
                                          AsiaInfo      Lenovo-
                                        Technologies   AsiaInfo     Total
                                            (in thousands of US dollars)

  Net Revenue (Non-GAAP)                    47,912      5,446      53,358
  Third Party Hardware Costs                 4,786        424       5,210
  Total Revenues                            52,698      5,870      58,568


  (2) Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP)


Net income (non-GAAP) excludes share-based compensation expenses, amortization of acquired intangible assets, impairment loss on investment, after-tax dividend income and gain on discontinued operations.  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 attributable to AsiaInfo Holdings, Inc. (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 the Company's net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) measure, when read in conjunction with the Company's GAAP net income measure and other GAAP financial metrics, 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 attributable to AsiaInfo Holdings, Inc.
  (non-GAAP) to GAAP net income attributable to AsiaInfo Holdings, Inc.

                                      Three Months    Nine Months
                                     Ended Sept. 30  Ended Sept.30  2009 Q2
                                       2009   2008    2009    2008
                                            (in thousands of US dollars)
  GAAP net income                      9,065  6,099  22,060  16,579   7,205
  Adjustments:
   -- Share-based compensation         3,593  1,303   8,633   2,643   3,858
   -- Amortization of acquired
      intangible assets                  316    385     945   1,231     316
   -- Impairment loss on investment       --     --      --      --      --
   -- Gain on discontinued operations     --     --      --    (980)     --
   -- Dividend income, net of tax         (4)  (230)   (178)   (533)     (3)
  Non-GAAP net income                 12,970  7,557  31,460  18,940  11,376




(3) Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per basic share

Net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) is calculated based on net income attributable to AsiaInfo Holdings, Inc.  Like net income attributable to AsiaInfo Holdings, Inc. (non-GAAP), net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share excludes share-based compensation expenses, amortization of acquired intangible assets, impairment loss on investment, after-tax dividend income and gain on discontinued operations.  Shares outstanding used in the computation of net income per share were the same as those used in the computation of net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share.  Management believes that net income attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share, when used in conjunction with the Company's GAAP net income attributable to AsiaInfo Holdings, Inc. per share, provides useful information to investors for the same reasons discussed above regarding net income attributable to AsiaInfo Holdings, Inc. (non-GAAP).  In addition, net income attributable to AsiaInfo Holdings, Inc. (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 attributable to AsiaInfo Holdings, Inc. (non-GAAP) per share to GAAP net income attributable to AsiaInfo Holdings, Inc. per share

                                 Three Months       Nine Months
                                Ended Sept. 30     Ended Sept.30    2009 Q2
                                  2009      2008    2009     2008
                                       (in thousands of US dollar)
  GAAP net income per
   basic share                    0.20      0.13    0.49     0.37     0.16
  Adjustments:
   -- Share-based
      compensation                0.08      0.03    0.19     0.06     0.09
   -- Amortization of
      acquired intangible
      assets                      0.01      0.01    0.02     0.03     0.01
   -- Impairment loss on
      investment                    --        --      --       --       --
   -- Gain on discontinued
      operations                    --        --      --    (0.02)      --
   -- Dividend income, net
      of tax                        --     (0.01)     --    (0.01)      --
  Non-GAAP net income per
   basic share                    0.29      0.16    0.70     0.43     0.26


  Cautionary Note Regarding Forward-Looking Statements


The information contained in this document is as of October 28, 2009. 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, 2008, and in our reports on Forms 10-Q and 8-K filed with the United States Securities and Exchange Commission and available at http://www.sec.gov/ .

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

  For investor and media inquiries, please contact:

  In China:
   Sheryl Zhang
   AsiaInfo Holdings, Inc.
   Tel:   [phone]
   Email: 

   Justin Knapp
   Ogilvy Financial, Beijing
   Tel:   [phone]
   Email: 

  In the United States:
   Ms. Jessica Barist Cohen
   Ogilvy Financial, New York
   Tel:   [phone]
   Email: 

DATASOURCE: AsiaInfo Holdings, Inc.



CONTACT: In China - Sheryl Zhang of AsiaInfo Holdings, Inc.,

[phone], or ; or Justin Knapp of Ogilvy Financial,

Beijing, [phone], or ; Or In the United States - Ms.

Jessica Barist Cohen of Ogilvy Financial, New York, [phone], or

 



Web site: http://www.asiainfo.com/ 

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