‘Delivering on the promise of continued commitment to the India market’

12 May, 2010, Shenzhen, China- ZTE Corporation (“ZTE” - H share stock code: 00763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and networking solutions, today announced its India subsidiary will expand a new Indian Engineering Centre (IEC) office in Delhi to meet the increasing demand for engineering services in the India market. In 2009, the company increased its Indian headcount by more than 1000 employees nationwide, only in Delhi almost 100 employees were recruited and trained during this period. To accommodate this rapid rise in the number of employees of IEC, ZTE India has invested in this new facility and will move all its employees to the new facility so it can better respond to customers' needs.

This expansion follows close on the heels of the establishment of the National Network Operation Center (NNOC) announced by ZTE India last year to showcase its long-term development and localization strategy. The new IEC office will be the primary hub for ZTE India’s after-sale engineering team, which includes managed-services, network establishment, and maintenance of the network for operators. ZTE India has a local management team led by Chairman and Managing Director, Dr. D.K. Ghosh and other substantial positions. Currently, ZTE India employs over 90% local Indian staff.

To coincide with the opening of the IEC in Delhi, the expansion of the Bangalore is also expected to be completed, which will provide training services to 2000 ZTE India local staff as well as 3000 local outsourcing partners. The move will facilitate a timely knowledge transfer of the latest telecom and engineering technology to the local telecom professionals in India.

Dr. Ghosh explained, “As India is a strategic market, ZTE has provided more than 7000 job opportunities within the company and its partners. ZTE will continue to invest in technology and engineering to make sure we support the development of the telecom sector in every way possible, especially with 3G just around-the-corner.”

ZTE has been in India for 10 years, and has become one of the major players in the market. It works in cooperation with all operators in India. It is also expanding the business in high-level markets like Europe and the US, providing products to top operators.

Based on its stellar performance in and out of India, the company expressed its view on the security issues: “ZTE, as the listed company in both Shenzhen and Hong Kong, has maintained a transparent approach to management since very beginning. ZTE fully understands and respects the security concern of India government and unconditional adhere to the policies and relative requirements of India government. ZTE’s products have been widely used by all the high-level operators in America, Europe and India as well and have consistently met all strict requirements of product quality and security. We sincerely hope the India government will soon issue clear regulations for a security test. Once the regulations are put in place, ZTE will proactively work with the relevant authorities to follow all the procedures of the test, and we are confident of clearing all required parameters. And in the interim period, we hope to receive the same equal treatment that other manufacturers can expect in India,” added Dr. Ghosh.

Meanwhile, ZTE India remains focus on India as a key market and committed to increasing its investment in India. Dr. Ghosh said, “We intend to work closely with the government in the Indian business environment and continue to cherish the relationships that we have built with customers and partners here. As evidence of its continued investment in India, ZTE will continue to introduce new production equipment to enhance its manufacturing capacity. Regarding the security issue, with discussion and communication with the government, we are sure that we will be given a proper solution.”