ZTE Enters the Retail Handset Market in India

Launches a range of low-cost feature-rich handsets to mark its foray in the retail space

NEW DELHI, India – 14 September 2009: 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 introduced handsets under the ZTE brand name in the Indian retail market. The company has launched a range of five cost effective feature laden GSM handsets – Models S315, A261, R220, R230 and R230BT at price points ranging from Rs. 1,100 to Rs. 3,800 to mark its retail foray. With the entry in the retail handset market in India, ZTE is looking at furthering the contribution of the Indian market to its global handset sales from the existing 16% to 20%, besides substantially increasing its existing handset market share in India.

In order to establish a strong retail distribution network, the company has appointed Overseas Mobiles Private Limited as its national distributor for mobile and data devices. Overseas Mobiles will be appointing 80 Regional Distributors across India and manage relationships with distributors and corporate customers on behalf of ZTE. They will also be responsible for ensuring nationwide distribution coverage for ZTE’s range of GSM and CDMA handsets and data products, besides managing below-the-line activities including promotions at retail outlets. ZTE is targeting to have a network of 100,000 Retail Outlets in India by this year-end.

“One of the largest handset manufacturers in the world, we at ZTE have already sold over 20 Million handsets in India through partnerships with various telecom operators. We also have one of the strongest after sales service network with over 250 service centers across the country. India is a key focus market for us and we are delighted to launch ZTE branded handsets in the retail market as this would play a critical role in furthering our existing market-share in the country,” said Dr. DK Ghosh, Chairman & MD, ZTE India. “ZTE is focused on providing great products at competitive pricing to Indian consumers and we will seek to provide them with a much larger choice by introducing handsets across segments in the coming days. Together, with Overseas Mobiles Private Limited, we will make a difference in one of the fastest growing telecom markets in the world.”

“We are proud to be a partner of ZTE Corporation and deeply humbled by ZTE’s decision to appoint Overseas Mobiles Private Limited as the national distributor for India and look forward to a mutually successful relationship,” said Arshit Pathak, Director, Overseas Mobiles Private Limited

With global sales of over 100 million handsets last year, ZTE is currently the sixth largest handset manufacturer in the world and is now focusing on becoming one of the top five global phone maker within the next five years. Over the last seven years, ZTE has transformed into one of the most formidable phone manufacturers in China as well as the international market. To sustain the momentum and keep pace with stiff competition in the global handset arena, ZTE adopted the handset business strategy from 2005 and opted to collaborate with global telecom carriers and service providers to further expand its global reach.

Today, ZTE has established partnerships with well-known telecom carriers such as Vodafone, Hutchison Whampoa and Telefonica to further develop its businesses in high-end markets including Europe, North America and Japan. In India, ZTE’s client portfolio comprises of the leading telecom operators in the country including BSNL, Reliance Communications, Tata, Vodafone, Spice Telecom and Aircel. ZTE has also supplied handsets to Vodafone and Reliance Communications.

About Overseas Mobiles Private Limited

Overseas Mobiles Private Limited is a part of 100 years old Overseas Mobiles Private Limited Group which has interest in the distribution of Telecom products, Consumer Electronics , Home Appliances, Watches and Motorbikes. The group is also engaged in real estate development and manages Mall, Multiplex and hotel. Overseas Mobiles Private Limited team brings with it vigorous marketing prowess, a steadfast focus on excellence and a wealth of knowledge about the mobile devices industry.

About ZTE
ZTE is a leading global provider of telecommunications equipment and network solutions. It has the widest and most complete product range in the world – covering virtually every sector of the wireline, wireless, service and terminals markets. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries, helping them to achieve continued revenue growth and to shape the future of the world’s communications. ZTE commits around 10% of its annual turnover to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. ZTE leads China’s 3G industry with about 30% share of the total 3G equipment market in 2008. A company with sound corporate social responsibility (CSR) initiatives, ZTE is a member of the UN Global Compact that strictly adheres to the Ten Principles of the Global Compact in developing and carrying out CSR programs. ZTE is China’s only listed telecoms manufacturer, with shares publicly traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ). For more information, please visit www.zte.com.cn.