Europe UK : ZTE has signed a 3G handsets supply agreement with Hutchison 3G, the world leading 3G operator. The first batch of ZTE and 3 co-branded WCDMA handsets has been shipped to the U.K., and has been launched into the market for Christmas. The ZTE F866 3G handset ( above ) will be available to customers of the 3 Network in the UK this Christmas.

ZTE has sold more than 10 million handsets worldwide in 2004. This contract is a significant step ahead for ZTE towards becoming a global handset supplier.

Hutchison 3G operates 3G services in nine markets including the U.K., Italy, Sweden, Australia, and Hong Kong, and has over 10 million 3G customers.

ZTE has been working closely with Hutchison 3G for one year to develop the handsets and conclude the contract. Hutchison 3G maintains a very strict supplier selection process to support its strong branding worldwide. ZTE has successfully passed the selection process and won its first contract, to provide the ZTE F866 3G handset. The F866 is a high-quality, stylish clamshell handset which provides GSM 900/1800 and UMTS 2100 access, with multimedia capabilities including MP3 audio, streaming video and a rotating camera.

ZTE's 3G terminals have also been delivered in developed European and Asian markets including Italy and Taiwan.

"This is an important contract for ZTE and we will be working closely with Hutchison 3G to ensure that everything runs smoothly," said Mr. He Shiyou, SVP of ZTE and General Manager of the company's Handset Division. "ZTE spends 10% of its revenue on R & D and our technology competes with the best in the world. Hundreds of millions of customers prove this."

ZTE's contract with Hutchison 3G is the company's most recent cooperation with international Tier One operators. This month ZTE has also concluded a major R&D agreement with France Telecom.

ZTE has also developed strategic marketing and technology partnerships with leading vendors such as Qualcomm, Intel, Cisco, Alcatel and Ericsson.

"This is the continuation of our successful win-win partnership strategy where we are working with major telecoms companies to assure that both ZTE and the partner company achieve major benefits from the relationship. This is key to our global strategy, especially in developed markets." said Mr. He.

About ZTE
ZTE is a leading global provider of telecommunications equipment and network solutions. The ZTE product range is the most complete in the world - covering virtually every sector of the wireline, wireless and handset markets. The company delivers innovative, custom-made products and services to customers in more than 100 countries, helping them to achieve continued revenue growth and to shape the future of the world's communications. ZTE commits around 10% of annual turnover to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. It is the fastest growing telecoms equipment company in the world, and is China's only listed telecoms manufacturer, with shares publicly traded on both the Hong Kong and Shenzhen Stock Exchanges. ZTE was the only Chinese IT and telecoms manufacturer listed in BusinessWeek 2005's Information Technology 100.