Funds to Allow ZTE to Expand and Strengthen Its Leading Position in Global Market

22 May 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 entered into a strategic partnership with The Export-Import Bank of China (China Exim Bank) by signing a “Strategic Cooperation Agreement” for a US$10 billion credit line. This agreement further helps strengthen the leading edge of both China Exim Bank in the financing area, as well as ZTE’s leading position in the telecom technology industry.

Under the cooperation agreement, ZTE and China Exim Bank will join together to establish a financing platform to support ZTE and its holding subsidiaries in overseas market activities including export seller’s credit, export buyer’s credit, import credit, preferential foreign loans, transferred loans of foreign governments and trade financing, as well as other premium financial services. ZTE agrees to deal with China Exim Bank as a principal banker and handle loans and relevant businesses thereunder through China Exim Bank. China Exim Bank shall provide the Company with a USD10 billion facility for cooperation, comprising the Company’s overseas project financing, consulting services, financial services (other than financing) and innovative ventures.

ZTE has long attached great importance to forging long-term strategic cooperation with financial institutions in China. The fact that China Exim Bank has named ZTE as a pilot company for integrated financing credit line granting underlines that ZTE, as a listed company in both Shenzhen and Hong Kong, is in a robust financial state, operates its businesses in a transparent, stable and standardized manner and possesses a strong ability to achieve sustainable development.

As a national policy bank, China Exim Bank plays a unique and important role in implementing national macro regulatory policies, driving the optimization of China’s export commodity structure and carrying out the export market diversification strategy. Global and leading telecom operators are under enormous pressure to develop next-generation telecom technologies, such as 3G to meet market demands. However in view of the current global financial crisis, a majority of mainstream financing agencies based in Europe and the U.S. are trying to find ways to address issues such as inadequate liquidity and credit crunch. This is where China Exim Bank has an advantage by possessing a healthy balance sheet as well as strong financing and credit ability, and sees positive future prospect for the global telecom industry.

Meanwhile, ZTE’s fast-expanding overseas businesses, optimized customer structure and enhanced overall competitiveness in China’s 3G market make financial institutions in China to have full confidence in ZTE’s continuous business growth in the future.