ZTE Corporation is China's leading telecommunications equipment manufacturer and network solutions provider. The company provides cutting-edge technologies and customer-oriented total solutions combining evolution, development and innovation to meet various operators’ needs in global markets. The company develops and manufactures telecommunications equipment for fixed, mobile, data and optical networks, intelligent networks (IN) and next generation networks (NGN). Over 10% of ZTE’s annual revenue is dedicated to R&D. And ZTE has always been enhancing product quality, reducing cost, achieving higher sales and thus increasing return on investment. ZTE has been listed on the Shenzhen Stock Exchange since 1997. With 25.2 billion RMB (3.46 billion USD) in contracted sales in 2003, ZTE continues its rapid growth and development in 2004. ZTE has become an important global player in the telecommunications industry. The company today has around 17,000 employees and 50 overseas branch offices. Its products have been deployed in over 40 countries and regions across five continents. ZTE believes that it must not only focus on expanding its sales, but also on improving its internal efficiency. The company intends to achieve this goal by:  Streamlining internal processes and improving financial efficiency  Further improving product and service quality standards through the continued implementation of a 6-sigma quality control program  Implementing CMM in R&D management Global Strength. Local Success. With ZTE products already deployed in more than 40 countries worldwide and with offices in more than 50 countries, ZTE’s position as a powerful global player in the telecommunications industry is well established. ZTE in China In the past decade, China has become one of the largest and fastest growing telecommunications markets in the world. According to the statistics from MII (Chinese Ministry of Information Industry), from 1997 to 2003, the number of wireless subscribers grew at a compound annual growth rate of approximately 68.8%. By the end of June 2003, China had over 269 million wireless subscribers, making it the largest wireless telecommunications market in the world in terms of number of subscribers. Also according to CCID, the number of fixed-line subscribers in China also experienced a significant compound annual growth rate of approximately 26.3% from 1997 to 2003, reaching approximately 263 million by the end of 2003. China’s telecommunications equipment market is likely to continue to grow in the next few years, driven by robust economic growth, strong demand for voice and data services and a relatively low teledensity rate. ZTE has been providing telecommunications equipment and relevant solutions in China for over 15 years. Consequently, the company has longstanding, close relationships with the major Chinese telecommunications operators, including China Telecom, China Mobile, China Unicom, China Netcom and China Railcom. To more closely interact with her customers and respond quickly to their needs, the Company has developed a nationwide sales, marketing and support network with 28 local offices in Beijing, Shanghai and other major provincial cities. ZTE (H.K.) Ltd. was founded in December 2001 to cater to the expanding global business of ZTE, working as the mother company’s universal import & export agent in Hong Kong, as well as her wholly owned financial services company. In China, aside from being a leading provider of traditional circuit-switch products, ZTE is also a leading domestic supplier of CDMA infrastructure, the largest provider of short message service system and the second largest provider of PCS network infrastructure. In addition, the company is currently the only vendor to have won contracts to construct trial Softswitch networks from all major Chinese fixed-line carriers. ZTE in India ZTE Corporation initiated its Indian operations in mid 2001, and won the first contract in India in July 2002, a turnkey nationwide optical transmission project. With this project ZTE is going to build up DWDM backbone network of 40 stations across India, covering major cities like Delhi and Mumbai. In 2003, ZTE signed a contract with BSNL, the biggest state-own telecom operator in India, to provide nationwide CDMA WLL equipments and solutions .Up to now, ZTE becomes an important supplier for CDMA devices and solutions in India CDMA market. ZTE’s state-of-the-art network total solutions and products are expanding the telecommunications capacity and enhancing quality assurance services to India’s high speed developing telecommunications market. ZTE in CIS (Commonwealth of Independent States) ZTE entered the CIS telecommunications market in 2000. In Russia, ZTE has won network entry licenses for its major telecom products such as fixed network, intelligent network, GSM, CDMA and optical transport, paving the way for the exploration of future markets in this region. To serve local customers better, ZTE Service Center CIS Region has been established, specializing in providing engineering services for local projects. ZTE’s telecom products have been widely deployed in the markets of Russia and other countries of CIS: 1n 2001, ZTE deployed a fixed network with total solutions in Tver, a town near Moscow, providing voice related services. In March 2002, ZTE signed a contract of CDMA WLL with OJSC “Kazakh telecom” to reconstruct the wireless access network of Kazakhstan national rural switching network. The project is expected to take 3 years to complete. In April 2002, ZTE won a contract providing a GSM system to JOSC Babilon in Dushanbe, the capital of Tajikistan. In May 2002, ZTE won a switch project from JSC Tajik Telecom building a transit exchange office in Tajikistan. The office is an important transit point of the national exchange backbone network between the capital Dushanbe and Kurgan-Tube of Hatlon state. In September 2002, a contract for a switching system was signed with OJSC “Kazakh telecom” in Kazakhstan. In March 2003,ZTE Signed a contract with SMERTS ,one of Russia’s largest GSM operators, to supply a new MSC(Mobile Switch Center) and 40 base stations serving 100,000 subscribers, as well as expanding the existing MSC to 60,000 subscribers. In February 2004, KCC’s (Kuzbass Cellular Communication) CDMA450 mobile network provided by ZTE Corporation was put into commercial use. The network is the first CDMA450 commercial application network constructed by ZTE. ZTE in Pakistan In 1998, ZTE won the order to supply and set up a fixed line network in Pakistan. Under the terms of the contract, ZTE supplied ZXJ10 switching systems, ZXSM SDH optical transport equipment, ZXDU power supply systems and accessories for 37 exchanges in 15 cities: including Islamabad and Karachi. This turnkey project was completed and approved by Pakistan Telecom. After the completion of this project, Pakistan Telecom commissioned ZTE to expand its telecom network in another two contracts for switching systems in 2001 and 2002 respectively. In May 2001, ZTE’s CDMA products also found applications in the market of Pakistan. ZTE in Cyprus On January 26, 2000, ZTE signed a contract with CYTA (Cyprus Telecom Authority) for a turnkey project to provide subscribers with 17 categories of intelligent network services for both fixed networks and GSM mobile networks. According to the contract, ZTE provides SSP, SMP, SCEP, IP and interconnection solutions for information centers, WWW servers, banks and other management organizations. ZTE in Egypt In order to enhance Egypt’s education facilities, the Chinese government granted a set of tele-education systems to the Egypt Ministry of Education. In October 2001, ZTE won the tender for providing videoconferencing equipment and a complete tele-education solution. The first phase of this project involved the engineering and construction of a 33-node network, making this one of the world’s largest tele-education networks. ZTE in Zambia ZTE entered a contract with Zambia Telecommunication Company on April 12, 2001, to supply switching and microwave transport equipment for construction of telecommunication networks in 16 Zambian cities. On March 25, 2002, ZTE signed a second contract to supply and set up a national GSM mobile network for Zambia. ZTE in Kenya On December 4, 1998, ZTE signed an agreement with Kenya Posts & Telecommunications Corp. (KPTC) for the installation of the ZXMVC3000 multi-point videoconferencing system. This project resulted in the successful integration of four major departments – General Post Office (GPO), the International Exchange Center (EXTELECOM), Kenya College of Communication Technologies (KCCT) and GTI, the largest Kenyan telecom equipment joint venture. ZTE in USA In May 1999, a set of ZXJ10 SPC digital switching system was successfully installed at WCG Corp., New York, USA, marking ZTE’s entry into the competitive North American telecommunications market. Another two sets of systems are currently running in Chicago and Seattle. ZTE in Ecuador In March 2001, ZTE entered its first contract with PACIFICTEL to supply switching equipment for Ecuador. In December 2001, ZTE won the public tender to supply DWDM/SDH equipment and set up the first national backbone optical transport network in Ecuador for PACIFICTEL. The 1008 kilometer backbone will interconnect with the Pan-American, Atlantis, Columbian and Peruvian undersea cable systems and greatly improve Ecuador’s communications infrastructure. ZTE R&D Centers ZTE operates 13 wholly owned R&D Centers worldwide in the U.S., South Korea, Beijing, Shanghai and Shenzhen, among others.  ZTE Shenzhen R&D center is engaged in R&D of CDMA systems , telecommunications IC design, optical transport, video conferencing systems, telecommunications power supply and centralized monitoring systems.  ZTE Nanjing R&D Center is engaged in R&D of network products and data products.  ZTE Shanghai R&D Center I is engaged in R&D of integrated network products.  ZTE Shanghai R&D Center II is engaged in R&D of mobile products.  ZTE Beijing R&D Institute is engaged in R&D of large capacity optical transport products.  ZTE R&D Institute in the U.S. (Dallas, San Diego and New Jersey) is engaged in collection and exchange of the latest technological development information worldwide.  ZTE-Motorola joint lab is engaged in R&D of speech DSP ICs.  ZTE Agere R&D center is engaged in R&D of 3G platforms, 40Gbps switch fabric, 10Gbps network processors and MEMS. Dedicated Customer Support ZTE is proud of its reputation for providing complete end-to-end services, covering pre-sales and after-sales; providing telecom system equipment, engineering installation, network maintenance & optimization, service development, technology support, training and even financing. This total quality service, coupled with the most state of the art, cost effective technology, enables ZTE to provide reliable and customized solutions to all partners, in all areas of telecommunications, in all parts of the globe. To more closely interact with its customers and to ensure that its research and development team can quickly respond to customer's needs, ZTE has developed a national sales and marketing network, with 27 sales offices nationwide and more than 50 sales offices overseas. The company also offers a quick response, 24 hour technical support service to resolve the majority of technical issues faced by its customers. The company believes that its strong local presence, close relationships with customers and dedicated customer support allow it to better understand and develop products to address customers’ needs. Bringing the Future Closer ZTE is committed to the future of the telecommunications industry, and will continue to develop and expand its global operations to ensure that partners everywhere have and will continuously have the most effective solutions. This means ZTE’s further enhancing and improving existing products, as well as developing new products to answer the needs of an ever-changing industry.
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