ZTE Announces 2008 3Q Results

(New Delhi, 24 October 2008) – ZTE Corporation (“ZTE” or the “Group”) (H share stock code: 00763.HK / A share stock code: 000063.SZ) today announced its third quarterly results for the nine months ended 30 September 2008.

According to the PRC GAAP, the Group maintained steady business development during the reporting period. Revenue amounted to approximately RMB30.33 billion, a rise of 29.3% compared to the same period in 2007. Net profit of approximately RMB816 million was recorded, representing a growth of 35.3% year on year. Basic earnings per share were RMB0.61.

Within the nine-month period, the Group developed steadily by seizing opportunities derived from changing global economic conditions. Benefiting from its comprehensive product mix and innovative technologies, the Group achieved sustained development within the China market. Internationally, the Group’s market position continued to be improved progressively, and resulted in greater economies of scale, which in turn can be contributed to enhanced ties with leading carriers.

Looking forward to the fourth quarter, ZTE will commence domestic supply and delivery of CDMA and TD-SCDMA products based on successfully tendered contracts, as well as commence preparatory work on a WCDMA project it secured. ZTE will also gradually execute some key international projects. To build its core business, the Group will utilize its unique strengths in serving carriers as a means of tapping fresh business opportunities. Furthermore, it will continue to bolster ties with global mainstream operators while seeking to enhance the quality of projects it secures. As well, the Group will place great effort towards its overseas business, though keeping in mind the necessity for employing adequate exchange rate risk controls. Drawing from the Group’s experience in successfully developing its overseas business, ZTE will seek to capture opportunities locally, striving to expand within the wireless communications products as well as deliver terminals and optical communications products that allow the Group to achieve steady growth.
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About ZTE Corporation
ZTE is one of the leading providers of high-technology communications equipment in China. It is the first A share company to issue H shares and listed on the Main Board of The Stock Exchange of Hong Kong on 9 December 2004. The Group is principally engaged in the design, development, production, distribution and installation of a broad range of advanced telecommunications systems and equipment, including wireless communications systems, wireline switches and access systems, optical and data communications equipment, handsets, and telecommunications software systems and services. The Group’s products have already successfully penetrated into global telecommunication market and provide telecommunications products for over 500 customers in more than 100 countries and regions around the world, including Italy, India, Indonesia, Pakistan, Thailand, Russia, Nigeria, Egypt and Hong Kong, etc. The Group has established long-term business cooperation with global telecommunications service providers including Hutchison Telecom, France Telecom, Vodafone and Telefonica, etc.

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