Deal expected to solidify partnership between the two companies

November 19, 2008, Shenzhen, ZTE Corporation (“ZTE”) the leading global provider of telecommunications equipment and network solutions, today announced the signing of a 1.33 billion RMB contract with China Telecom Corporation Limited for the first phase of a CDMA network construction project commencing this year that will cover both wireless and service networks.

ZTE has the highest share from this bidding contract in terms of newly-constructed base stations, newly-built carrier sectors, combined total of base stations, accumulated total of carrier sectors and total cost of provincial and city deployment.

Under the agreement, ZTE will provide China Telecom with CDMA wireless equipment, technical documentation and services worth 1.27 billion RMB and service network equipment, technical documentation and services valued at 60 million RMB.  Other contracts for the construction of the core network and for the provision of additional telecom equipment are expected to be agreed upon by the two companies soon.

After a comprehensive bidding process, China Telecom, one of ZTE’s most important clients worldwide selected the company due to its cutting-edge CDMA technology solutions and services. With this latest win, ZTE’s technology contribution to China Telecom’s CDMA network project is expected to grow steadily, while the partnership between the two companies will be further strengthened.  ZTE is committed to providing China Telecom with high quality products and services that will help the company meet their CDMA wireless network deployment requirements and, as a result, allow them to offer subscribers with the best wireless network applications and services.

According to a report published by international research firm Yankee Group, ZTE is ahead among CDMA equipment providers in the Asia Pacific Area, Europe, Middle East and Africa, in terms of competitive strength in the CDMA wireless network field. The report also reveals that ZTE leads the industry in terms of CDMA technology, CDMA installed capacity, price point and the consistent development of comprehensive range of product series.

Similarly, a report released by EJL Wireless Research, another leading US consultancy firm shows that ZTE, up until now, has the most number of deals sealed of the 12 newly-signed CDMA contracts globally, inking 10 of the deals or 83.3% of the total projects.

Over the last eight years, ZTE has successfully achieved significant milestones with its global CDMA subscriber capacity reaching 170 million. It also ranks first in terms of global base station shipment as well as taking the number one spot of the Chinese CDMA market by virtue of its one third domestic shares.

The continuous success of the company in the CDMA market is attributed to a corporate policy of constantly introducing technical innovation, offering low TCO of its ALL-IP CDMA2000 solutions, and quick customer response.

Media Contacts:Margrete Ma

ZTE Corporation

Tel: +86 755 26775207

Email: ma.gaili@zte.com.cn