Optical/IP Networks

ZTE Boasts Global Deals

HONG KONG -- ZTE Corporation (Shenzhen: 000063 Hong Kong: 0763), China’s largest listed telecommunications manufacturer and leading wireless solutions provider, has, already in the first quarter of 2005, announced 12 contract wins in ten countries across five continents. The truly global series of successes includes ZTE’s first major agreements in France, Singapore and the United States.

ZTE has made significant steps into the European market following agreements with industry giants France Telecom, Alcatel and Portugal Telecom. In March, ZTE announced that it is to become a global supplier of ADSL equipment to France Telecom, which boasts 118.6 million customers worldwide. The agreement with Alcatel, announced at February’s 3GSM World Congress, will see ZTE’s CDMA radio access portfolio integrated into Alcatel’s CDMA end-to-end solutions. In January, ZTE signed a research and development Memorandum of Understanding (MoU) with Portugal Telecom and an agreement with Skylink, Russia’s largest CDMA operator.

“The contract wins ZTE has celebrated in 2005 show that we are truly a global player and demonstrate our commitment to the European market, which we see as vital to our growth and development,” said Mr. Cheng Lin, President of ZTE Europe. “Our European Roadshow, which started in Turkey and covers ten countries in three months, will show European audiences our new technologies and ability to provide complete network solutions.”

In addition to its successes in Europe, ZTE announced a collaboration with United States based Intel Corporation to jointly deliver global broadband wireless solutions using WiMAX technology. As part of this agreement, ZTE will develop and deploy infrastructure equipment using Intel’s silicon for WiMAX solutions based on IEEE 802.16-2004, and the upcoming IEEE 802.16e standards for mobile networks. The companies will also work jointly with regulatory agencies in key global markets for securing adequate radio spectrum for broadband services based on WiMAX technology.

ZTE won their first contract in Singapore, one of Asia’s flagship telecoms markets, in 2005. The breakthrough order will see ZTE supply an Intelligent Network system to support the IDD Prepaid services for leading operator, MobileOne Limited. This win was followed by the announcement that ZTE would supply Laos operator, Sky Telecom, with a national CDMA2000 1X EV-DO network to bring Laos into the 3G era. Also, in India, ZTE agreed a strategic alliance with Atlas Interactive to bring triple-play broadband to the country and confirmed its commitment to the market with the opening of a flagship factory and R&D centre that will develop CDMA, GSM, DSL, and NGN equipment, as well as handsets.

In Africa, ZTE announced a GSM contract with Algerian mobile operator ATM Mobilis, covering the whole western region of the country, with a 1.2 million subscriber base. In Zambia, ZTE announced the successful launch of its Intelligent Network system for national telecommunications operator, Zamtel.

Across the Atlantic, ZTE followed wins in Brazil and Venezuela with an announcement that it is to provide Argentina with its first CDMA450 network following a contract agreed with local operator, CoTeCal (Co-operative Telefonica Calafate). ZTE is to provide a total solution of network infrastructure and terminals to support the project.

From 1 January 2004 to 31 December 2004, ZTE Corporation and its subsidiaries recorded contract sales of US$4,111 million. Of these contract sales, US$1,644 million was attributable to international sales, representing a year-on-year increase of 169.5%.

“In 2004, about 40% of our revenue was from international sales,” said Mr. Ying Yimin, President of ZTE. “This year we will continue our globalisation strategy and introduce more of our products and services to international markets.”

ZTE Corp.

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