(Hong Kong, 9 April 2010) – ZTE Corporation (“ZTE” or the “Group”) (H share stock code: 0763.HK / A share stock code: 000063.SZ) today announced its annual results for the year ended 31 December 2009.

Based on HKFRS, ZTE recorded a revenue of approximately USD8,820.7million in 2009, representing an increase of 36.08% against 2008. Net profit was USD359.7 million, representing an increase of 48.06% against 2008. Basic earnings per share were USD0.21. In 2009, net cash flow from operating activities per share was USD0.28.

Applying PRC ASBEs, during the year under review, the Group’s revenue from principal operations was approximately USD8,820.7 million, representing an increase of 36.08% against 2008. Net profit was USD359.7 million, representing an increase of 48.06% against 2008. Earnings per share amounted to USD0.21. In 2009, net cash flow from operating activities per share was USD0.31.

The Board of Directors recommended payment of a final dividend for the year ended 2009: the creation of 5 shares for every 10 shares and a cash dividend of USD0.44 for every 10 shares (including tax).

During the year, the Group’s revenue from domestic operations amounted to USD4,449.6 million, representing a year-on-year growth of 74.04%. The construction of 3G networks was strongly supported by the government as a new driver of economic growth. Leveraging the opportunity of full-scale 3G construction in the nation, the Group emerged to become China’s largest supplier of 3G network equipment as we dominated in the network construction tenders of the three leading carriers and developed positive and balanced strategic partnerships with the big three. Meanwhile, strong sales were reported for our TD-SCDMA, CDMA and XPON products.

As for revenue from the international operations, it grew to USD4,371.1 million, 11.34% more year-on-year, and accounted for49.56% of the total revenue of the Group. The Group overcame the impact of the financial crisis and sustained growth in a lacklustre international telecom market on the back of its cost-competitiveness, technological edge and financial strengths. The Group made successive breakthroughs in the high-end markets around the world, as our principal products (with the exception of terminals), such as carrying networks, access networks and service networks, were gaining footholds in important markets in Europe and America, which are set to become significant growth spots for the Company in the coming years.

 Mr. Hou Weigui, Chairman of ZTE, said, “In 2009, our Group attained significant breakthroughs and growth in the mainstream product of carriers’ network. In the mainstream market, we topped the overall ranking for the PRC 3G market during the reporting period, while revenue from Europe and America was growing fast as a percentage of the Group’s sales revenue from international markets. We succeeded in making major breakthroughs in the mainstream market on the back of our strengths in research and development as well as our ability in swift network delivery, winning contracts to build commercial networks in major cities around the world for mainstream carriers such as CSL, KPN and Telenor.

Our terminal business sustained rapid growth throughout 2009, as its global ranking in terms of handset delivery continued to rise. In the domestic market, we reported fast growth in our terminal products throughout the year thanks to the thriving 3G market. On the international front, we continued to make breakthroughs in important country markets and mainstream carriers, resulting in a more balanced global presence. Sales of our terminal products were on the rise in Europe and the United States, auguring well for the realization of our development and business objectives for 2010.”

Mr. Hou concluded, “In the coming year, we will focus on improving its capabilities in integrate solutions and strive to constantly improve the quality of networks provided to customers by enhancing its competition strategy, product planning, product delivery and market behaviour, etc. Meanwhile, we will persistently observe the priority, working to increase our efficiency and pursue internationalization in greater depth, laying solid foundations for our growth into a top-rate world-class enterprise as we take advantage of the opportunities at hand. ”