Company Secures First Feature Phone with Major U.S. Carrier; Delivers Affordable Advanced Technology to Consumers Worldwide

6 January 2011, Shenzhen – CES 2011 caps a year in which 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, drove handset market momentum worldwide including key international markets such as the U.S. ,Europe and Japan. Overseas handset shipments reached 17 million units in the first half of 2010, accounting for 60% of total handset sales. In addition the company experienced a growth rate of 30% compared to the same timeframe in 2009, attributable to volume breakthrough in high end markets including the U.S., Europe and Japan.

Key Milestones

·　　　　 U.S. Market Breakthrough – ZTE USA launched the company's first feature phone with Verizon Wireless in August 2010. After collaborating on consumer devices in the past, ZTE was able to work successfully with the Tier-1 operator to launch a handset that was both affordable and feature packed for its segment.

·　　　　 Android for the Mass Market – ZTE launched a wide variety of Android devices in the year of 2010including the Libero handset in Japan, the Blade handset in France, the Racer handset in the U.K. and the LIGHT tablet in Europe and Asia. The company continues to deliver innovative products that take advantage of the most advanced software on the market at an unsurpassed value to consumers.

·　　　　 Global Market Share – In a report released by iSuppi, ZTE moved into the top 5 global handset vendors. ZTE continues to work to reach its goal of becoming one of the top 3 handset vendors in the world.

·　　　　 Key Partnerships – With a focus on end user experience, ZTE teamed up with key partners in the industry including SmithMicro Software and Qualcomm to deliver smartphones and intelligent mobile internet service that meet the growing demand for bandwidth.

·　　　　Product Customization – According to He Shiyou, Executive President of ZTE Corporation, product customization for wireless operators will become more important as 3G and 4G standards are adopted worldwide. In mature markets, 70 percent to 80 percent of all handsets are customized by operators. Vendors that are flexible with their product designs will surge ahead.

Moving into 2011,  ZTE plans to continue to bring advanced technology to market in a price range that more users can afford. "ZTE is committed to lowering the cost threshold for users looking for an intelligent device," said one executive for ZTE handset division. "Many of the most advanced devices available on the market today are priced out of most consumers' range. We are working with our partner carriers to change that in 2011."

ZTE continues to focus on 4G innovation in the U.S. and will launch LTE capable products in 2011. Please visit the ZTE booth at CES, #35376.