27 April 2010, Hong Kong–ZTE Corporation (“ZTE” or the “Group”) (H share stock code: 0763.HK / A share stock code: 000063.SZ) today announced its first quarterly results ended 31 March 2010.

The Group reported a net profit of RMB109.86 million in the three months ended 31 March 2010, up 39.68% from RMB78.66 million in the same period last year, according to PRC ASBEs. Revenue rose 13.59% to RMB13.26 billion from RMB 11.67 billion compared with the same period last year.

During the first quarter, investments in telecommunications equipment in the domestic market remained stable, with mobile network construction and optical communication equipment accounting for a major share of the capital expenditure of carriers. In the international market, the impact of the financial crisis was waning, and the Group was presented with more opportunities as some equipment manufacturers left the mainstream market.

In the review period, the Group maintained growth at a relatively stable pace. The market position in China has been enhanced by ZTE’s deliveries in 3G mobile network construction, while there were outstanding results in the sales of terminals and relevant carriers’ network products.

Internationally, ZTE was sustaining sound growth in various regional markets with the benefit of strong investments in equipment in emerging markets which were enjoying early economic recovery.

By product category, ZTE’s business segment of carriers’ networks reported 0.9% growth compared with the same period last year, driven mainly by revenue from the sales of optical communication products and wireline switch and access products. The terminal segment reported sales growth of 41.8% year-on-year, attributable mainly to the rapid growth in the sales of high-end products featuring mainly 3G handsets. Revenue from telecommunications software systems, services and other products also grew by 40.8%, reflecting mainly growth in revenue from enterprise network products and servicing products.

Looking ahead, the Group will continue to strengthen its implementation capabilities, paying close attention to the enhancement of management efficiency. ZTE will seek in-depth understanding of market and customer requirements to secure further opportunities in both the domestic and the international markets that would ensure stable development for the Group.