4Q 2008 Sales Growth for Optical Networking Products Increased by 27% Year-over-Year, According to Ovum Report

7 May 2009, Shenzhen, China – ZTE Corporation (“ZTE” or the “Group”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, had the highest Optical Networking (ON) industry sales growth with its Bearer Network Products in 4Q 2008, according to a report published by international research firm Ovum entitled “Market Share: 4Q08 and 2008 Global ON.” According to the report, ZTE outperformed all other vendors with a 27% year-over-year sales increase, for its Bearer Network Products, which includes multi-service bearer products and Wavelength Division Multiplexing (WDM) products.

ZTE announced this significant achievement during the PTN Conference held in Vienna, Austria from April 27th to 30th, 2009. At the PTN Conference, ZTE showcased its new generation multi-service bearer product: IPTN. Integrating the technical advantages of legacy optical transmission and IP network, ZTE’s IPTN delivers operators an agile and intelligent all-service solution to address the global market needs for both higher bandwidth and transmission efficiency.

Ovum’s report additionally indicates that macroeconomic turbulence would likely hit capex budgets, making vendor stability a strong buying criteria and giving ZTE a real opportunity to lead in the next few quarters as the “safe” choice.

Another Ovum research report entitled “Market Share: 4Q08 and 2008 EMEA ON” revealed that ZTE had the biggest share gain in both aggregation and backbone in the Dense Wavelength Division Multiplexing (DWDM) segment.

The report stated that ZTE continued to aggressively go after business in the Middle East and Africa, Commonwealth of Independent States and the Europe market, offering complex turnkey and integrated wireless-wireline projects that only two or three other vendors are positioned to implement well. It further discusses ZTE’s position to extend its Europe Middle East and Africa (EMEA) market share growth in 2009.

“The Ovum reports further reaffirms ZTE’s strong R&D advantage and our capability to offer first-class optical networking products through our Bearer Network Product lines,” said Mr. Fan Xiaobing, General Manager of Bearer Network Products, ZTE Corporation. “We are fully committed to expanding our ON product portfolio in the years to come to address the global market needs for higher bandwidth and reliable solutions.”

To date, ZTE multi-service bearer network products, WDM and data communications products have been widely deployed by over 250 operators in more than 90 countries covering Europe, Asia-Pacific, Latin America, Africa and the Middle East.