Customised range of handsets to be sold in 12 countries

Barcelona, 17 February 2010 —Telefónica and ZTE today announced that a full range of movistar branded handsets will be launched in 12 Latin American countries during 2010, starting in Q2. Telefónica and ZTE signed an agreement for the development of a complete range of mobile devices. ZTE will manufacture movistar branded handsets exclusively available for Telefónica in Latin America.

“Consumers in Latin America are becoming increasingly demanding and have specific requirements in terms of handset design and desired features. By customising a complete range of handsets, ZTE will enable Telefónica to meet the requirements of its Latin American customers and further build the movistar brand,” said Luis Miguel Gilpérez, Director of Mobile Business, Telefónica Internacional.

The handsets have been co-designed by ZTE and Telefónica and mark the first strategic cooperation in the handsets space between the two companies.

Telefónica is one of the largest telecommunications operators in Latin America. The customised ZTE handsets will be available throughout the year in the following markets: Mexico, Colombia, Venezuela, Peru, Ecuador, Argentina, Uruguay, Chile, Guatemala, El Salvador, Panama and Nicaragua.

ZTE is the world's 6th largest mobile phone manufacturer and the world's second largest supplier of data cards, according to shipment volumes. By the end of 2009, ZTE has cooperated with eight of the world's top 10 operators in the handsets space. With this partnership, ZTE will expand its business in the Latin America market.