7 September 2009, Shenzhen, China - ZTE Corporation (“ZTE” or the “Group”) (A share stock code: 000063.SZ /H share stock code: 0763.HK), a leading global provider of telecommunications equipment and network solutions, today announced it has been ranked as the global leading FTTx vendor by IDATE, a renowned consulting and research firm in Europe. The top six global FTTx vendors are all Asian equipment firms, with ZTE being the industry leader with 19% of accumulated global shipments in the first half of 2009, according to the latest IDATE report “World FTTx Market.”

IDATE analysis included global FTTx deployments, FTTx technology options and FTTx equipment vendors’ business development. FTTx includes FTTB， FTTH, FTTLA, FTTN+VDSL and FTTx+LAN, of which FTTB and FTTH have become the most important application models. Attributed to the ongoing “Optical in and Copper out” market approach and comprehensive telecom service in China, the Asia/Pacific region is the biggest FTTx market in the world, followed by North America and Europe. In China, the FTTx+LAN is widely adopted, while in Europe and North America, FTTN+VDSL is more frequently used.

In terms of options for different FTTx technologies, EPON accounts for 60% of the global market for its technologically advanced, low cost advantages, as well as its clear and specific technology evolution roadmap. EPON is prevalent in the Asia Pacific market: in China, leading operators have adopted EPON to provide users with higher bandwidth services, and to achieve mobile backhaul in combination with 3G network deployment. In North America, BPON/GPON is the leading FTTx technology; and in Europe, Ethernet P2P has become the key technology for FTTx even if GPON is progressing.

The report pointed out that the world’s top six FTTx equipment vendors all came from Asia, largely due to the fact that the world’s largest FTTx constructions are on China, including China Unicom’s 11 million EPON lines tender. In China, FTTx vendors see the tremendous business opportunities, and ZTE takes a far lead over its competitors with 45% of market share, further helping strengthen its leading role in the domestic market.

The IDATE research report reviewed a wide range of leading FTTx providers including ZTE and Huawei. ZTE is concurrently focused on R&D of both xPON and NG-PON technologies. The company has also taken a lead position in research on 10G EPON, a next-generation PON standard.

The research forecasts that the FTTx industry will continue strong growth over the next few years. By 2014, there will be 140 million FTTx users globally, while the Asia/Pacific region will remain the largest FTTx market.