8 February2010, Shenzhen, China– ZTE Corporation (“ZTE” - H share stock code: 00763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network has reported that the Patent Protection Association of China (PPAC) recently released patent application rankings for 2009 with ZTE, Huawei and Hongfujin claiming the top three spots on the ranking list. With 5,719 patent applications, ZTE widened its lead over its competitors, claiming the top spot for the first time. The number of patent applications filed by ZTE in 2009 was up over 20% compared to the number filed in 2008. Meanwhile, ZTE also saw its overseas patent applications increase over 200%, hitting 1,164, achieving the fastest growth of patent applications in the world.

More than 90% of ZTE’s 6,000-plus patent applications locally and abroad were invention patents. Of this, wireless patent applications accounted for 30%. Through such sizable increases in patent applications, ZTE hopes to strengthen its technical strength in wireless-led fields and raise its market position in 3G and 4G network building in China and worldwide. iSuppli1’s latest research report in late January 2010 shows that in 2009, the first year of 3G building in China, ZTE already took a market share of 35%, the highest of all reported firms.

Guo Xiaoming, ZTE’s Global Intellectual Property Director said: “This year and the next few years will be of vital importance for ZTE’s fast patent growth and comprehensive technology planning worldwide.” The intellectual property strategy, which is consistent with the corporate philosophy of ZTE, is one of ZTE’s eight major strategies. The company has long pursued a robust and balanced intellectual property strategy. The 2008 global financial crisis has caused deep business falls for many European and US companies with some companies restructuring or even filing for bankruptcy. Against this background, ZTE has developed a strategy to speed up comprehensive breakthroughs in European and US markets and has set the goal of entering the world’s top three communication equipment vendors in the next three to five years. ZTE’s considerable increases in worldwide patent applications in 2009 have contributed to achieving such corporate goals.

To strengthen its advantage in the global communication market, ZTE has persisted in a policy of investing 10% of its revenues into R&D.　

ZTE has invested a greater percentage of revenue into R&D than any other Chinese company in the country. Even in 2008 when the global financial crisis was most serious and its competitors were forced to scale down their R&D, ZTE still devoted 4 billion Yuan to R&D. ZTE’s investments into R&D far outnumber their total sales revenues. Due to this, ZTE has well overtaken its competitors in many technical aspects. In global competitions, particularly in European and US markets where technology is highly valued and local communication industries are facing upgrades, ZTE has shown marked advantages.

ZTE has implemented an intellectual property strategy for well over seven years. It now has over 40,000 employees engaged in R&D and technical services and boasts a professional intellectual property team. To date, ZTE has filed 25,000 patent applications.