[ZTE's increase in handset shipments attributed to the increasing market demands from international markets as well as a spike in 3G usage in China.]

Shenzhen, China -- ZTE Corporation (“ZTE”), a leading global provider of telecommunications equipment and network solutions, today announced that ZTE had shipped 28 million handsets globally in the first half of 2010, which represents a significant 40% increase year-on-year. This is attributed to the increasing market demands from international markets, as well as a spike in 3G usage in China and smartphone popularity worldwide.

Continuous breakthrough in high-end markets

In the first half of 2010, ZTE had shipped 17 million handsets to the international markets (i.e. markets outside China), making up 60% of total shipments. This is an increase of 30% year-on-year. For the European market, ZTE recorded a year-on-year increase of 150%.

In UK, the sales of ZTE handsets in Q2 2010 exceeded 1 million units, and the sales in France also exceeded 1 million in the first half of the year. ZTE partnered with all the top operators in Europe, and received widespread recognition from clients through its work in custom-made Android smartphone handsets and WCDMA custom-made units.

ZTE has also achieved a tremendous breakthrough in the U.S. market. Salute, a custom-made handset developed by ZTE with Verizon, was launched in the U.S. on August 19, 2010.

In Japan, ZTE collaborated with Softbank to introduce customized handsets for the elderly and a 3G monitor, which were key products in Softbank’s summer product launches.

3G in China drives demand for ZTE handsets

ZTE capitalized on the burgeoning China 3G market to provide a comprehensive range of terminal products for the three major telecom operators in China. ZTE has shipped 11 million handsets in China in the first half of 2010, representing a solid 75% year-on-year increase.

ZTE provided a comprehensive range of China Multimedia Mobile Broadcasting (CMMB) terminal products to support China Mobile’s mobile TV interactive services. ZTE’s flagship U230 handset was also a top seller for China Mobile. In the area of WCDMA and EVDO handsets, ZTE’s 3G handsets (around RMB1000; approximately USD 147) were a major factor driving the rapid adoption of 3G usage in China.

In addition, ZTE intensified its R&D efforts to target the high-end consumer market. ZTE holds the biggest number of 3G terminal product patents in China, and will launch a full series of Android smartphones for the three major mobile phone standards.

Excels in the smartphone market

According to IDC’s latest report, the total global shipment of smartphones in 1H 2010 was 118 million units, which represents an increase of 54% compared with 76.8 million units in 1H 2009. This rapid increase in market demand is a strong driver for the growing popularity of ZTE smartphones.

In the first half of 2010, ZTE launched nearly 10 types of Android handsets, including the Racer, Link and X850 models which had been adopted by H3G in the UK, Bouygues Telecom in France, VIVO in Brazil and other markets. In China, the ZTE X850 phone became one of the major Android mobile devices offered by China Unicom.

As a partner of Microsoft, ZTE is working closely on Windows Phone 7.0 product development after the global launch of the WM6.5 handset last October in Portugal and other countries.

In terms of engineering and design, ZTE’s handsets support various mainstream smartphone operating systems ranging from Linux to Windows, from Android to OMS, and from BMP to Meego. The company provides comprehensive handset customization services for global operators.

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