ZTECIinches CIose to MiIIion-Iine ADSL Contract from China TeIecom

ZTECorporation announced on February 14,2006 that it is to provide almost one million lines of ADSL2+equipment to China Telecom,the country's largest fixed line operator,for network upgrading and transformation.

This latest success,which represents 30%of the total award by China Telecom follows three previous million-line ADSLorders secured in December 2003,August 2004 and March 2005 with the same operator,and further confirms ZTE's global market strength in ADSLprovision.

The ZTEADSL2+equipment,including IPTVservice support,multicast technology,comprehensive multi-service platform,broadband operation and maintenance,is among the most advanced in the industry.

″We are proud to have been selected again by China Telecom for its strategic transformation towards becoming a comprehensive information service provider,″said ZTE Network Division's Vice General Manager Mr Huang Dabin.″New ZTEequipment will help China Telecom generate further new profit opportunities by bringing its subscribers more diversified broadband services.″

In recent years,ZTE's ADSLequipment has been a key element of partnerships with global mainstream operators.In 2004,ZTEwon a major contract with Greek operator OTEfor the Olympic Games against worldwide competition.The company deployed an ADSL network covering 16 points in Athens.In March 2005,ZTEsigned an agreement to become a global supplier of ADSL equipment to France Telecom,one of the world's leading telecommunications carriers.

ZTE's ADSLproducts have been deployed in over 30 countries and regions around the world,including France,Greece,Romania and Egypt,with an accumulated capacity of 15 million lines.According to a 2005 Gartner Dataquest's report,ZTEwas one of the top three DSLproviders in the world.