ZTE's first shipment of 3G terminals to North America

August 21, 2006

ZTE announced that it has signed a general contract with TELUS, the second largest Canadian telecommunications operator, to supply 3G terminals. The first batch of CDMA EVDO data cards has been shipped and will be available in major Canadian cities this month. This marks another important breakthrough for ZTE in the European and American high-end markets, the most advanced 3G markets in the world, following its cooperation with top European operators such as France Telecom and Hutchison Whampoa. North America is regarded as the most difficult market to break into and the move is a significant milestone in ZTE´s overseas expansion.

Ye Weimin, vice president of ZTE, said, ´As 3G terminal products enter the Canadian market, the company has laid a solid foundation to explore the North American markets. We have a long term strategy for Canada and the shipment of EVDO data cards to the country is the first step of in-depth cooperation between ZTE and TELUS.´

EVDO high speed wireless data service represents a major revolution for telecom operators. Higher data rate can be achieved with this technology while the high quality of voice is also guaranteed. In addition, the large capacity of the EVDO system allows more users on a network, increasing the potential of operators´ profitability.