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ZTE Wins Final Ruling from U.S. ITC in FlashPoint Case

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, is pleased about the decision by the United States International Trade Commission to terminate the investigation into complaints initiated by FlashPoint Technology Inc.

In a final decision, the ITC rejected FlashPoint’s complaints alleging infringement of digital camera patents and violations of Section 337 of the Tariff Act of 1930. Apart from ZTE, other respondents in the FlashPoint case included HTC Corp. and Huawei Technologies Co.

The decision in the FlashPoint case followed the ITC’s ruling last month in favor of ZTE in a case initiated by Technology Properties Limited LLC, and a decision in December 2013 to reject the patent claims made by InterDigital Inc.

“We welcome the ITC’s ruling in the FlashPoint case. The three recent decisions issued by the ITC in favor of ZTE gave us increased confidence about our capabilities to defend our intellectual property rights,” said Guo Xiaoming, Chief Legal Officer of ZTE. “We regret the action taken by non-practicing entities (NPEs) in using litigation as an anti-competitive tactic to impose high patent licensing fees on counter-parties. U.S. authorities are becoming less tolerant of the behavior of NPEs, which is a positive development.”

ZTE’s strategic planning and industry-leading pool of intellectual property assets offer a strong safeguard to help the company prevail in patent litigations internationally.

ZTE has filed applications for more than 50,000 patents globally, with more than 16,000 granted. ZTE is a global leader with more than 800 essential patents on the standardization 4G LTE. ZTE will continue to strengthen its portfolio of patents to attain globally-leading positions in core areas such as smart terminals, optical networking, cloud computing, big data and 4G LTE, and invest in next-generation technologies such as 5G. Such investments will be key to enhance ZTE’s competitiveness and intellectual property capabilities to help the company cope with changes in the technology landscape and market environment.

ZTE retained its global top-2 position in patent applications in the World Intellectual Property Organization’s annual rankings published this month.

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 160 countries, helping them to meet the changing needs of their customers while growing 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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