ZTE CORPORATION Announcement of Dividend Payment for 2004

(Stock Code: 763)

The Company and all the members of the Board of Directors confirm that the information contained in this announcement is true, accurate and complete and that there are no false and misleading statements or material omissions in this announcement.

The 2004 profit distribution plan of ZTE Corporation (the "Company") was considered and approved at the 2004 annual general meeting held on 31 May 2005. The Company hereby announces details of dividend payments in respect of its A Shares and H Shares as follows:

I. Plan for Dividend Payment

The Company´s plan for dividend payment for 2004 is as follows: a cash dividend payment of RMB2.5 (inclusive of tax) for every 10 shares or approximately RMB239,880,000 in aggregate based on the Company´s total share capital of 959,521,650 shares as at 31 December 2004 will be made.

Individual holders (including senior management of the Company) of A Shares and investment funds
will receive a cash dividend of RMB2.25 for every 10 shares net of tax. Holders of A Shares who are legal person shareholders and holders of H Shares will not have any tax amount withheld. The total share capital of the Company will remain unchanged after the dividend payment.

II. Details of the Dividend Payment for A Shares

1. The record date and ex-dividend date
The record date will be 7 July 2005 and the ex-dividend date will be 8 July 2005 in relation to the
current dividend payment.

2. Persons entitled to the dividend payment
Holders of A Shares of the Company whose names were registered on the register of the
Company maintained at China Securities Depository & Clearing Corporation Limited, Shenzhen
Branch after the close of the afternoon trading session at the Shenzhen Stock Exchange on 7 July
2005 will be entitled to the dividend payment.

3. Method of dividend payment
Dividends payable in respect of publicly held shares will be credited to the accounts of
shareholders through custodian securities houses. Dividends payable in respect of state-owned
legal person shares, domestic legal person shares and shares held by senior management of the
Company will be paid out by the Company.

III. Details of the Dividend Payment for H Shares

Holders of H Shares whose names were registered on the H Share register of the Company on 29 April 2005 will be entitled to the aforesaid final dividend of the Company.

Dividends in respect of H Shares of the Company will be denominated and declared in RMB and
payable in Hong Kong Dollars. The applicable exchange rate will be the average base exchange rate
for RMB/HK$ announced by the People´s Bank of China over the calendar week prior to the date of declaration of the current final dividend (31 May 2005), that is, HK$100:RMB106.322. The final
dividend of HK$0.2351 per share will be payable to holders of H Shares of the Company on 8 July
2005.

IV. Information for Enquiries

Address: 6/F, Tower A
ZTE Plaza
Keji Road South
Hi-Tech Industrial Park
Nanshan District
Shenzhen

Contact Person: Li Liuhong
Tel: +86 (755) 26770285
Fax: +86 (755) 26770286

By Order of the Board
Hou Weigui
Chairman

Shenzhen, PRC
4 July 2005

As at the date of this announcement, the Board of Directors of the Company comprises three executive directors, Yin Yimin, Shi Lirong and He Shiyou; six non-executive directors, Hou Weigui, Wang Zongyin, Xie Weiliang, Zhang Junchao, Li Juping and Dong Lianbo; and five independent non-executive directors, Zhu Wuxiang, Chen Shaohua, Qiao Wenjun, Mi Zhengkun and Li Jin.

Please also refer to the published version of this announcement in the (South China Morning Post)