ZTE Corporation ("ZTE" or the "Group") (H share stock code: 0763.HK / A share stock code: 000063.SZ) announced today its interim results for the six months ended 30 June 2007.

Based on the financial statements prepared in accordance with HKFRS, the Group's revenue for the first six months of 2007 amounted to RMB15.232 billion, representing an increase of 43.85% compared with the corresponding period last year. Net profit amounted to RMB460 million, representing an increase of 32.50% compared with the corresponding period last year.  Basic earnings per share reached RMB0.48.

Whereas based on the financial statements prepared in accordance with PRC GAAP, the Group's revenue for the first six months of 2007 amounted to RMB15.232 billion, representing an increase of 43.85% compared with the corresponding period last year. Net profit amounted to RMB460 million, representing an increase of 32.50% compared with the corresponding period last year. Earnings per share reached RMB0.48.

During the first six months of 2007, with the domestic and overseas telecommunication markets growing strong and steady, the Group maintained steady growth for its domestic business. In the domestic market, its TD-SCDMA and GSM products in particular delivered outstanding performance and China Mobile became the Group's largest domestic customer. In the international market, the Group focused on developing premium customers among multinational carriers and mainstream carriers in various countries, in addition to reinforcing its stronghold in traditional markets in the Asia Pacific region, South Asia and Africa. Efforts were made to enlarge the market share of mainstream products such as GSM, CDMA and transmission products in traditional markets. Riding on the demand for its terminals and new business applications, ZTE made major strides into developed countries in Western Europe and North America.

The Group's wireless communications products, handsets, optical and data communications segments registered substantial growth in sales compared with the corresponding period last year. Among all its wireless products, GMS products managed to gain foothold in high potential new markets and the support of new carriers, while keeping its lead in traditional markets. The products gained an overall bigger market share. The Group's 3G business reported breakthroughs. Its TD-SCDMA products fared well in the China Mobile bid and its CDMA2000 products also passed a large scale commercial trial. As for the optical and data communication products segment, the market coverage of optical communications systems and DSL products enlarged substantially. The Group enhanced its ability in developing and customising handset products. Apart from serving a fast growing international market, its CDMA handsets also gained brand prominence in South Asia. The Group's GSM handsets were short-listed by world leading carrier Vodafone and China Mobile for potential customization and reported significant increase in both domestic and international sales.

Looking ahead to the second half of the year, the domestic telecommunications sector is expected to continue to draw investment. Internationally, rapid growth is expected particularly for emerging markets. Apart from stepping up development of different international markets and enhance its CDMA2000 and UMTS products, the Group will continue to improve management efficiency and raise the value of the Group so as to bring strong rewards to shareholders.