Spreadtrum and ZTE First to Demonstrate TD-MBMS

SHANGHAI, China, Oct. 23 / - Spreadtrum Communications, Inc. and Zhongxing Telecommunication Equipment Co., Ltd. (ZTE Corporation, 0763.HK) today announced that ZTE Corporation R&D Centre (Shanghai) has successfully demonstrated TD-MBMS network services using Spreadtrum's TD-SCDMA/GSM/GPRS dual-mode chipset solution.

MBMS, Multimedia Broadcast/Multicast Service, is a packet based broadcast service for mobile communication networks that allows a single broadcasted frequency to carry multiple channels of content. MBMS is an important feature for third generation (3G) mobile communication networks, as carriers view multicast services like MBMS as a great opportunity to develop applications that would increase their ARPU (average revenue per user) through the broadcast of services to handsets ranging from short advertisements, free/premium TV channels, and group sending of multimedia messages (video blogging). TD-MBMS was created as an easy and fast deployment mobile multimedia solution for MBMS on TD-SCDMA networks, since it requires relatively small changes to the underlying 3GPP standard, which should enable carriers to deploy these multimedia services with a comparatively low network deployment cost.

As a new TD-SCDMA multimedia service, TD-MBMS targets the mid to high-end segments of the 3G mobile market and should help bring new mobile entertainment experiences, such as watching television on mobile devices, to consumers.

As indicated in today's announcement, TD-MBMS is now technically feasible on the TD-SCDMA network built using ZTE's equipment. With the adoption of Spreadtrum's SC8800D TD-SCDMA/GSM/GPRS dual-mode chip and platform, TD-MBMS could be applied to mobile phones, providing smooth images and clear sound. This successful demonstration of MBMS based on the TD-SCDMA standard indicates that the TD-MBMS technology is ready for commercialization. This new TD-MBMS development is another step in the joint commercialization of TD-SCDMA by Spreadtrum and ZTE, following the strategic partnership agreement between Spreadtrum and ZTE announced on August 29, 2007.

Dr. Datong Chen, CTO of Spreadtrum, said, ''We are very pleased to be a part of ZTE's successful demonstration of the industry's first TD-MBMS services. We believe this not only enriches the growing level of 3G TD-SCDMA multimedia services, but also enables TD-SCDMA mobile phones to satisfy the diverse requirements of its targeted users. In addition, Spreadtrum's TD-SCDMA/GSM/GPRS dual-mode chip and platform can equip the handset manufacturers with competitive technical advantages of TD-SCDMA mobile phones."

Mr. Yuhong Duan, ZTE's General Manager of TD products, said, ''ZTE has been focused on the research and technical evolvement of the TD-SCDMA standard for several years, and it is the first to support TD-MBMS on the system side in the industry. This successful showcase by ZTE of MBMS based on Spreadtrum's chip solution not only exemplifies the technical advancement of ZTE's TD-SCDMA equipment, but also ZTE's contributions to the anticipated widespread use of TD-SCDMA in China."

About Spreadtrum

Spreadtrum Communications, Inc. is a fabless semiconductor company that designs, develops, and markets baseband processor solutions for the mobile wireless communications market. Spreadtrum combines its semiconductor design expertise with its software development capabilities to deliver highly- integrated baseband processors with multimedia functionality and power management. Spreadtrum has developed its solutions based on an open development platform, enabling its customers to develop customized wireless products that are feature-rich and meet their cost and time-to-market requirements.

Source: Spreadtrum Communications, Inc.

CONTACT: William Shi of Spreadtrum Communications, +86-10-6270-2988 x217, or william.shi@spreadtrum.com

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