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ZTE, Telefónica Develop Phones

BARCELONA -- Telefónica España and ZTE, a leading global provider of telecommunications equipment and network solutions, have reached an agreement to jointly manufacture and distribute 3G mobile handsets for the Spanish market. The new ZTE phones will be launched by Movistar during 2007 and will boast the latest technology and features at a highly competitive price.

Telefónica and ZTE will form a joint team to work on the development projects and an independent team will be formed to develop ZTE products in Spain. The first product of the collaboration will be a 3G phone, called the F230, developed for Movistar by ZTE.

Shiyou He, Senior Vice President of ZTE, said: "From a geographical and economic point of view, Spain is a key market for ZTE. Therefore, an agreement with the leader in that market - Telefónica - is an ideal opportunity to show our technological expertise in the development of new 3G handsets."

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763)

Telefónica de España

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