16 April 2009, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions today announced that it has partnered with Sichuan Telecom to successfully establish the first IMS-based EV-DO video telephony (VT) call in China. Meanwhile, ZTE plans to launch a series of commercial EV-DO terminals equipped with video phone features by end of Q2 this year.

The Sichuan Telecom’s IMS network is the largest and most comprehensive commercial network of China Telecom, the parent company of Sichuan Telecom. The network, which ZTE helped to deploy, has been smoothly in operation offering rich ICT convergence services and multimedia services.

VT is one of the ‘killer applications’ of 3G. The IMS-based EV-DO VT calls that ZTE successfully made this time through various modes including phone-to-phone calls, as well as communication between two personal computers. All these calls were capable of smoothly transmitting multimedia images, providing good voice quality as well as offering exceptional user experience.

Sichuan Telecom appointed ZTE to help them deploy their EV-DO network, which was officially made available on April 16, 2009. ZTE was selected by Sichuan Telecom due to its ability to provide world-class quality network solutions and proven track record in network deployment. The EV-DO network supports Revision A, peak download speeds of up to 3.1 Mbps. China Telecom plans to launch its EV-DO network in phases and will cover over 80 key cities across China, including Beijing, Shanghai, Chengdu and Fuzhou.

“The successful launching of Sichuan Telecom IMS project demonstrates a good example of how far China’s 3G CDMA market has achieved,” said Mr. Xu Ziyang, General Manager of Core Network, ZTE Corporation. “ZTE is committed to propelling the development of 3G market by continuously developing end-to-end business and commercial VT solutions to the industry. Moving forward, we’ll offer comprehensive value-added services for VT-driven businesses, including multimedia ring back tones, multimedia image display, multimedia conferencing, and dynamic address book,” added Mr. Xu.

ZTE is China Telecom's largest 3G CDMA network equipment supplier, providing the company the most number of equipment over the rest of network vendors in China. ZTE has the biggest share of China Telecom’s network contract, particularly for its wireless access equipment, core network and business service platforms.

ZTE is the only core network vendor in the industry that supports all access technologies. Its comprehensive product portfolio includes Fixed Softswitch, Mobile Softswitch, as well as a full range of IMS products and solutions. As of Q1 2009, ZTE's Core Network products have serviced 1.13 billion subscribers from 110 countries worldwide.