SHANGHAI -- China Telecommunications Technology Labs ("CTTL") and Spreadtrum Communications (Shanghai) Co., Ltd., a subsidiary of Spreadtrum Communications, Inc. (Nasdaq: SPRD) ("Spreadtrum"), today jointly announced their strategic partnership. Their cooperation will focus on researching new technologies and services in wireless communications and multimedia terminals to promote innovative research of new technologies and services that meet the requirements of the Chinese mobile handset market and to improve the quality of wireless communications and multimedia terminals.

The Chinese mobile communications industry is now advancing into its maturation phrase. A unique industry chain capability has developed in China's mobile phone industry, which now comprises of design, R&D, support, production, marketing, etc. This development will enhance the competitiveness of phones made in China for the local and overseas markets. With the strategic partnership of CTTL and Spreadtrum, our cooperation will create new technologies and services in wireless communications and multimedia terminals. For example, we expect to innovative services by utilizing our combined resources and new techniques in 2G and 3G networks to develop high-tech information security technologies for the mobile and multimedia markets. Our cooperation will simultaneously broaden and strengthen interactions in the industry chain.

Ms. Fuli of CTTL said, "As one of China's important wireless and multimedia core chipset providers, Spreadtrum plays an important role in the industry. After establishing the strategic partnership of CTTL and Spreadtrum, both will coordinate their unique techniques and advantages to cooperate on new technical hot projects."

Dr. Leo Li, President and CEO of Spreadtrum, said: "CTTL is a comprehensive and large-scale information communications base that serves the Chinese and overseas markets to develop new technologies and establish standards, tests and verification services. With CTTL's partnership, Spreadtrum expects to improve its product quality and performance and to offer more suitable products for the Chinese and international markets. "

Spreadtrum Communications Inc.

China Telecommunication Technology Labs (CTTL)