ZTE Secures Bank Credit

SHENZHEN, China -- 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, today announced that it has entered into a strategic partnership with China Development Bank by signing a “Development of Financial Cooperation Agreement”. This partnership further strengthens the solid relationship the two organizations have previously developed.

Under the agreement, both parties will closely work together to establish an investment and financing platform, including expansion to overseas markets. According to a 5-year cooperation framework agreement, China Development Bank will provide ZTE a US$15 billion credit line, including ZTE’s overseas project financing and ZTE’s credit limits. The two companies are currently in discussion to develop specific terms and procedures on financing project and how to effectively execute the business cooperation.

Today, global and leading telecom operators are under enormous pressure to develop next-generation telecom technologies, such as 3G, to meet market demands. However, in view of the current global financial crisis, majority of mainstream financing agencies based in Europe and the U.S. are trying to find ways how to address issues such as inadequate liquidity and credit crunch. This is where China Development Bank has an advantage by possessing healthy balance sheet as well as strong financing and credit ability, and sees positive future prospect for the global telecom industry.

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763)