Deal Another Significant Company Milestone in Penetrating Eastern Europe

28 April 2008, Shenzhen, China - ZTE Corporation ("ZTE"), a leading global provider of telecommunications equipment and network solutions, successfully penetrates the Eastern European IPTV market by recently sealing an IPTV project contract with the Republican Unitary Telecommunication Enterprise (RUE) Beltelecom, a National Telecommunications Operator of the Republic of Belarus. 

Since May 2006, Beltelecom has been initiating the national IPTV development and conducting IPTV trial tests with leading providers in the industry.  ZTE beats other competitors in the contract bid with its network video technology, which has a solid network performance infrastructure design, and one of the most reliable and comprehensive end-to-end multimedia solutions in the industry that meets sophisticated needs of multimedia service providers.

"We are honored to be selected by Beltelecom for its national IPTV project.  We have an extensive track record and IPTV system deployment experience with service providers in various international markets," said Mr. Yu Yifang, General Manager of ZTE Multimedia and Terminal Product Lines.  "This new and significant customer win not only validates our proven capability in offering reliable IPTV network video solution, but also another key milestone for our IPTV expertise in penetrating international markets."

Beltelecom, which is wholly owned by the State Republic, is the only telecom fixed-line provider and general internet provider with advanced telecommunication networks in the country. Established in July 1995, the company was transformed to RUE Beltelecom in 2004 by Order of the Ministry of Communications and Informatization.  Today, Beltelecom has nine State-level unitary telecommunication enterprises, and six joint ventures under these enterprises.  In addition to regulating the country's national fixed-line business and data transmission backbone infrastructure, Beltelecom is a shareholder of three mobile telecom providers in Belarus.

Over the years, ZTE has conducted major IPTV trials in China as well as deployed IPTV systems in Europe, Asia Pacific, Latin America and other regions.  In December 2007, ZTE clinched a major contract win with China Netcom Group Corporation (CNC) for the world's first AVS-IPTV commercial network development bid.  The company has also sealed deals to construct IPTV projects for China Telecom, including the world's largest H.264 standard-based IPTV network for Shanghai Telecom. To-date, ZTE holds more than 50 percent of China's current IPTV market.