10:04     ZTE<00763> - Announcement                                           

    This announcement is for information purposes only and does not           
    constitute an invitation or offer to acquire, purchase or subscribe for   
    securities.  This announcement is made pursuant to the requirement under  
    Section 9(2) of the Securities and Futures (Price Stabilizing) Rules.     
                                                                              
    The Stock Exchange of Hong Kong Limited takes no responsibility for the   
    contents of this announcement, make no representation as to its accuracy  
    or completeness and expressly disclaims any liability whatsoever for any  
    loss howsoever arising from or in reliance upon the whole or any part of  
    the contents of this announcement.                                        
                                                                              
    Unless otherwise defined in this announcement, terms defined in the       
    prospectus of ZTE Corporation (the "Company") dated November 29, 2004     
    (the "Prospectus") have the same meanings when used in this               
    announcement.                                                             
                                                                              
    ZTE CORPORATION                                                           
    (a joint stock limited company incorporated in the People's Republic of   
    China with limited liability)                                             
    (Stock Code: 0763)                                                        
                                                                              
    ANNOUNCEMENT                                                              
    STABILIZING ACTIONS AND END OF STABILIZING PERIOD                         
                                                                              
                                                                              
    The stabilizing period in connection with the Global Offering ended on    
    January 1, 2005.                                                          
                                                                              
    The Company announces that the stabilizing period in connection with the  
    Global Offering ended on January 1, 2005.  During the stabilizing         
    period, the only stabilizing actions taken by Goldman Sachs (Asia)        
    L.L.C. were (i) its partial exercise, on December 7, 2004 for settlement  
    on December 9, 2004, of the Over-allotment Option to require the Company  
    to issue 7,396,548 additional H Shares and for the Selling Shareholders   
    to sell 64,506 additional H Shares; and (ii) its final exercise, on       
    December 14, 2004 for settlement on December 16, 2004, of the             
    Over-allotment Option to require the Company to issue 11,521,524          
    additional H Shares and for the Selling Shareholders to sell 100,476      
    additional H Shares, both at the Offer Price to cover over-allocations    
    of H Shares in the International Offering, as detailed in the Company's   
    announcements dated December 8, 2004 and December 15, 2004,               
    respectively.                                                             
                                                                              
    By order of the Board                                                     
    Hou Weigui                                                                
    Chairman                                                                  
                                                                              
    Hong Kong, January 6, 2005                                                
                                                                              
    As at the date of this announcement, the executive Directors of the       
    Company are Messrs Yin Yimin, Shi Lirong and He Shiyou; the               
    non-executive Directors of the Company are Messrs Hou Weigui, Wang        
    Zongyin, Xie Weiliang, Zhang Junchao, Li Juping, Dong Lianbo and Tan      
    Shanyi; and the independent non-executive Directors of the Company are    
    Messrs Zhu Wuxiang, Chen Shaohua, Qiao Wenjun, Tan Zhenhui, Mi Zhengkun   
    and Li Jin.