23 October, Shenzhen, China –ZTE Corporation (“ZTE”), a leading global provider of telecommunications equipment and network solutions, has recorded another sterling industry sales growth in the area of Optical Networking (ON) in Q2 2008, according to an Ovum report entitled “Market Share: 2Q08 Asia-Pacific ON”. The report shows that ZTE has the fastest ON annual sales growth in Asia Pacific, with an 8% market share, the 4^th highest in the region. In Q2 2008, ZTE had 12% market share of ON in the region, placing the company on the third spot among other ON providers.

　  Industry trend analysis in the Ovum report revealed that leading telecom operators in the region including China Mobile, Reliance, Bharti and Telkom Indonesia continue to enhance and expand their respective 2G network infrastructure. On the other hand, operators in developed countries are actively upgrading their networks to cater for 3G services demand.  The report added that during the first half of 2008, operators in Asia-Pacific invested 25% higher compared with the same period last year to upgrade their existing network infrastructure. In Q2 2008, Asia Pacific’s optical networking revenue increased by 19% quarter-on-quarter and 30% year-on-year.　

　  “ZTE once again proved that we have among the best ON products in the industry. The Ovum report further validates that telecom operators in the region continue to deploy our devices to help them enhance their network infrastructure. We build customer trusts by providing them with reliable and cost effective solutions. Moving forward, we’ll continue to preserve that company tradition to help create a better communication platform in various geographical locations worldwide," said Mr. Han Ling, general manager, ZTE Transmission Products Division.

　  "ZTE continues to penetrate new markets and expand its customer base in the region through new compelling network solutions and services. Its ON products have been deployed by telecom operators especially in high-end overseas markets such as Australia," an industry analyst commented. “We see its strategy to merge its ON and data products to further effectively position the company in the market,” he added.

　　 Today, ZTE’s ON communication products have been deployed by over 250 network operators in more than 90 countries in Europe, Asia-Pacific, Latin America, Africa and Middle East. During the Broadband World Forum Asia 2008, ZTE’s embedded RPR solution received the InfoVision Award, which recognizes the company’s advanced ON solution in solving technology problems, meeting network requirements, optimizing service and performance, and enhancing customer service.

Media Contacts:

Margrete Ma

ZTE Corporation

Tel: +86 755 26775207

Email: ma.gaili@zte.com.cn