Qualcomm Licenses to ZTEQualcomm Licenses to ZTE

SHENZHEN, China -- ZTE Corporation (Shenzhen 000063, Hong Kong 0763), China’s largest listed telecommunications equipment manufacturer and local wireless solution provider, has become the first Chinese vendor to receive a license from US-based Qualcomm Inc. (NASDAQ: QCOM) for the distribution of its leading gpsOne® positioning solution.

Under the terms of the global license and distribution agreement, ZTE is able to sell location positioning systems based on Qualcomm’s gpsOne technology – the world’s most widely deployed position location solution – for both CDMA20001X and WCDMA systems.

“ZTE continues to demonstrate its ambition and leadership in global 3G CDMA markets,” said Jing Wang, Senior Vice President of Qualcomm and Chairman. “We are extremely pleased to have worked in close partnership with ZTE for many years and look forward to continuing our co-operation to bring gpsOne technology to 3G operators around the world.”

GPS (global positioning system) is expected to generate increasing revenues, with over half of the world’s mobile users utilising mobile positioning services by the end of 2006 (according to a report by Cambridge Analysis Research). gpsOne technology, already widely recognised by handset operators, is expected to become the leading GPS solution.

“This partnership will further extend ZTE’s competitive global edge,” said Dr. Zhao Xianming, Vice President of ZTE. “The agreement enables us to bundle location-based services leveraging Qualcomm’s gpsOne technology with CDMA2000 and WCDMA systems – a winning solution for operators.”

ZTE Corp.