News release

London - 19 December 2005

Mobile media company 3 and ZTE Corporation, the fastest growing global provider of telecommunications equipment and network solutions, today launched the ZTE F866 3G handset in the UK. This is ZTE's first 3G mobile to go on sale in Europe.

The ZTE F866 is a stylish clamshell handset, with a rotating camera, supporting 3's full range of communications and entertainment services, including MP3 audio and video streaming. The ZTE F866 is exclusively available on 3's great value pay-as-you-go offer from this week.

The handset launch follows ZTE being named as a preferred global handset supplier to the 3 Group of companies and is the Chinese company's first entry into the European mobile phone market.

Marc Allera, Sales Director 3 UK said: "We're very pleased to be offering the ZTE F866, an exciting great value 3G video mobile, with today's announcement ZTE becomes the sixth handset supplier to 3 in the UK. We have worked with ZTE to supply an entry level handset for customers signing up to pay-as-you-go on 3. The ZTE F866 supports our full range of entertainment services and ensures 3 continues to have the leading range of 3G mobiles to suit everyone's taste and across all price points."

Mr. Frank Bai, ZTE UK general manager said: "The introduction of the F866 handset into the United Kingdom is a significant development for us and we are strongly placed to compete with other established handset manufacturers. We have worked very hard with 3 to establish a commercial offering that combines the value of an affordable device with the additional benefits of access to 3G technology and the enhanced services it provides."

ZTE has previously exported its WCDMA 3G handsets to the Asian and American markets and ZTE 3G data cards have been sold to European markets.

ZTE has one of the most complete product portfolios in the telecoms sector covering handsets and infrastructure products in all three spectrums of 3G - WCDMA, CDMA 2000 and TD-SCDMA.

About 3

3 is a mobile media company delivering a convergence of communications, entertainment and information to customers on the move.

The three areas which form the core of its business are:

• Communications - including all forms of personal communications, voice and video calling; text, picture and video messaging; and mobile blogging

• Entertainment - including television, music audio and video, computer games, and media publishing

• Information services - including wireless web, access to the best of the internet and a range of news services

3 UK is a member of the HWL group of 3G companies, which include 3G operations in Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy and Sweden.

For further information, please visit: www.three.co.uk or call the 3 Media Office on 020 7350 5696.

Three facts about 3:

• 3, a mobile media company, launched the UK's first 3G network
• 3 has over 3.2 million customers (August 2005 figure) in the UK and over 10 million worldwide
• The 3 network offers national coverage for calls and texts, and over 86% population coverage for 3G services.

About ZTE:

ZTE is a leading global provider of telecommunications equipment and network solutions. The ZTE product range is the most complete in the world - covering virtually every sector of the wireline, wireless and handset markets. The company delivers innovative, custom-made products and services to customers in more than 100 countries, helping them to achieve continued revenue growth and to shape the future of the world's communications. ZTE commits around 10% of annual turnover to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. It is the fastest growing telecoms equipment company in the world, and is China's only listed telecoms manufacturer, with shares publicly traded on both the Hong Kong and Shenzhen Stock Exchanges. ZTE was the only Chinese IT and telecoms manufacturer listed in BusinessWeek 2005's Information Technology 100. For more information please visit http://www.zte.com.cn

The ZTE F866 additional specification information:

• Dimensions - W: 50mm, D: 25.4, L (folded): 93.6mm
• Display - 2.0in TFT
• Sub display - 1in mono
• Camera - VGA (rotating)
• P2P video - Yes (with speakerphone)
• Messaging - SMS, MMS
• Frequencies - GSM 900/1800, UMTS 2100
• Multimedia:
  Download & Playback
  - Audio: MP3, AAC, midi, wav
  - Video: MPEG4, H.263
  Streaming:
  - Audio: AMR, AAC
  - Video: MPEG4, H.263