10 May 2011, Moscow– ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced at Expo Comm Moscow 2011, the company has displayed its finest solutions series to the overseas market.

Expo Comm Moscow 2011, the largest and most renowned communications technology exposition in Russia, organized by the Ministry of Communications and Mass Media of the Russian Federation, kicked off in Moscow today. The event attracted hundreds of communications manufacturers from all over the world, including Russia’s top three mobile operators MTC, Beeline and Megafon, as well as fixed operators such as SI and Comstar.

This year ZTE displayed its three major product series: 1) smart phones, 2) tablet PCs and 3) mobile broadband products, including 3G terminal product Blade- a best-seller in Europe; Light Tab Series- among the top 3 best-selling tablet PCs globally; and N600- the smart phone with over a million sales recorded in China to date.

Targeting Russia’s overall market

Russia has been a key market in ZTE’s overseas strategy; with the extraordinary performance in this region highlighting its value. In 2010, ZTE’s mobile handsets achieved a blowout growth in Russia and CIS with annual sales of up to 500 million RMB a growth rate of over 400% compared with 2009. ZTE’s market share has increased from less than 0.5% a year ago to almost 4% today, covering various market segments from entry 2G GSM phones through to Android smartphones. The super-low-end GSM phone has received over 2 million units of shipment, gaining a no.1 share in the custom-made phones market across Russia; the fast growing Android smart phone market also allowed operators to launch data and application services as rapidly as its increase in subscribers.

For mobile broadband products, ZTE has received an annual growth of over 60%, providing coverage for services such as HSPA + data card, UFI products and tablet products. By supporting multiple network systems such as HSPA+ and WiMax, the MF180 data card has become the best-selling product of the year, selling more than 1.6 million units in Russia.. ZTE has been actively communicating with local operators in the tablet PC market, creating partnerships with Beeline and MTS on mass shipments of Light Tab.

Implementing the smart-focused new strategy in the future

In 2011, ZTE’s smart phone series will enter the Russian market via a strategy of customization, smart-enabling and localization, maintaining ZTE’s leadership in the terminals market, both in terms of technology intensity and in-market share.  For mobile broadband and tablet products, ZTE will maintain comprehensive cooperation with the top three mobile operators to promote its entire series of mobile broadband products. In 2011, ZTE has estimated sales of more than 5 million terminals, with a market share of over 50%; it will also continue its localization process by being the first to launch the tablet PCs and smart terminals which support Russia’s GLONASS global positioning system. Compared to GPS, the adaptation of the GLONASS system- which is independently operated by Russia- will make the products more suitable for the Russian market.

On the road to 3G’s development

Earlier this year at “MWC Barcelona 2011”, ZTE launched its latest smart strategy ‘Light Your Smart World’, announcing that Smartphone, Tablet PC and Internet BOX would be its major focus in 2011, and building smart information platforms for individuals, homes and offices.

The Russian market has provided one of the best space for ZTE to demonstrate its strategy for smart terminals to date in 2011. ZTE intends to accelerate the roll out of its smart terminal strategy in Russia, building on this to form a general strategy for terminals connecting China and other countries, eventually covering the entire globe.