ZTE supply Hutchison 3G with handsets

December 20, 2005

ZTE, the provider of telecommunications equipment and network solutions, has signed a 3G handsets supply agreement with Hutchison 3G. 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.

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 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.