Company to Help Vistream Lower TCO and Bring Unparalleled Subscriber Access and Experience with GSM/UMTS High-Speed Services

3 July 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,to build a GSM/UMTS (Universal Mobile Telecommunications System) core network for Vistream, the first and leading mobile virtual network enabler (MVNE) in Germany,to help deliver high speed mobile access and applications. .

ZTE will provide a series of advanced solutions to Vistream for a network capacity of 500,000 subscribers, including an all-IP platform, ATCA (Advanced Telecommunications Computing Architecture) hardware infrastructure and advanced NGHLR (Next Generation Home Location Register) systems toconstruct a large a simplified GSM/UMTS core network.

The project will also include geographic database disaster recovery features to help maximize the network’s reliability and lower the operator’s TCO (total cost of ownership).

This is the first GSM/UMTS core network to be installed by ZTE in Germany. In order to meet Vistream’s unique network requirements and to ensure the operator stays competitive in the ever-changing mobile telecoms market, ZTE has customized the system for Vistream to ensure a low TCO, easy network management, and features that lead to an easily adoptable network expansion.

As the leading MVNE in the industry, Vistream is enlarging its business across various European markets, working in deep cooperation with various third party content providers. Renowned for its innovative business and profit models, Vistream offers a full range of CS/HLR (Circled Switched/ Home Location Register) equipment and possesses a comprehensive portfolio of Intelligent Network Services Platforms.

“This contract is the result of a future oriented cooperation and is a further important milestone for ZTE in Europe in the mobile telecommunication field,” said Zhu Jinyun, Executive Vice President of ZTE Corporation. “Through this collaboration, we further strengthen ZTE’s leading position in the CS/HLR area and show that we can fulfill the highest demands of Europe’s high-end telecom markets. We are very happy with this reference project that further proofs ZTE’s technological strength and delivery capability. At the moment, ZTE Germany is in touch with all network operators in Germany and we are expecting further contracts in the nearest future.”

“Vistream is committed to deliver innovative mobile services, enabling its brand partners to provide unique MVNO offerings in a very competitive market environment,” said Jürgen Zimmer, CEO of Vistream GmbH. “ZTE provides leading edge platforms that enable us to stay ahead of our competitors in terms of functionality and quality.”

ZTE is committed to the development of UMTS and LTE. It has partnered with Hong Kong’s number one mobile operator CSL Limited to build the world’s first SDR-based HSPA+ all-IP commercial network successfully by deploying more than 2,000 base stations in just 11 months.

For its innovative technology and outstanding services, ZTE has attained excellent bidding results in Unicom’s Phase I WCDMA tender in China. The company has now successfully entered into more than half of China’s provincial market, including Guangdong, Fujian, Shandong, Tianjin and other China provinces. ZTE has also successfully helped Unicom complete its Phase I WCDMA network deployment in the above developed provinces.

At the same time, ZTE has been shipping significant amounts of UMTS products to diverse global markets including Hong Kong, Turkey, Uzbekistan, Belarus and Indonesia, amongst others. IDC, the premier global provider of market intelligence, stated in its recent report, Leveraging Next-Generation HLR Solutions, that “ZTE plays a significant role in the next-generation HLR market as a leading provider.”