ZTE IMS to Update Telefónica Group in Perú Fixed Network – SYS

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ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock
code: 000063.SZ), a leading global provider of telecommunications
equipment and network solutions, announced today it will assist
Telefónica Group in Perú to modernize its fixed network.

According to the agreement, ZTE will assist Telefónica Group in Perú
with the deployment of an IMS core network based on an enhanced
telecommunications computing architecture (ETCA) platform and replace
aging switches on the network. The ZTE IMS solution supports most of
existing PSTN/ISDN services and multiple legacy interfaces, such as BRI,
PRI, POTS and NCS. This support will simplify operations and maintenance
and lower operating expenses.

The ZTE IMS solution supports narrow band access and supports broadband
access technologies including LTE and xPON. It provides a rich set of
converged voice services in combination with services already provided
by the existing network. These capabilities allow Telefónica Group in
Perú to use a unified core network and quickly deliver legacy, new and
future services.

“Telefónica Group in Perú, like many other main operators, faces the
challenges of dealing with legacy switches and lowering operating
expenditures while maintaining legacy terminals and service integrity,”
said ZTE Core Network Product Line President Liu Jianhua. “ZTE’s IMS
solution can overcome these hurdles.”

As of the end of 2011, ZTE had signed more than 140 commercial and trial
IMS contracts worldwide, including in Europe, India, Singapore, the
United States and other markets.

About Telefónica Group in Perú:

Telefónica group in Perú is the largest telecommunications operator in
Perú. It provides users with fixed-line voice, broadband, cable
television services and mobile services. The company holds a 95 per cent
market share in fixed-line services and a 60 per cent market share in
Peruvian mobile and CATV.

About ZTE

ZTE is a publicly-listed global provider of telecommunications equipment
and network solutions with the most comprehensive product range covering
virtually every telecommunications sector, including wireless, access
bearer, VAS, terminals and professional services. The company delivers
innovative, custom-made products and services to over 500 operators in
more than 140 countries, helping them to meet the changing needs of
their customers while growing revenue. In 2011, ZTE’s revenue increased
by 29 per cent to USD13.7 billion. Its overseas operating revenue grew
30 per cent to USD 7.4 billion during the period, accounting for 54.2
per cent of overall operating revenue. ZTE commits 10 per cent of its
annual revenue to research and development and has leadership roles in
several international bodies devoted to developing telecommunications
industry standards. ZTE is committed to corporate social responsibility
and is a member of the UN Global Compact. The company is China’s only
listed telecom manufacturer that is publicly traded on both the Hong
Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share
stock code: 000063.SZ). For more information, please visit www.zte.com.cn.

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