ZTE Corporation (000063.SZ  00763.HK) said its wholly-owned subsidiary, ZTE France SASU, has entered into a framework contract for the provision of equipment and services (SFR framework contract) and a 2010 SMS service execution contract (SMS contract) on 23 July 2010 and intends to enter into a PATES-NG execution contract (PATES contract) in December 2011 in Paris with LA SOCIETE FRANCAISE DU RADIOTELEPHONE (SFR), a mobile carrier in France.

ZTE France shall supply equipment and services related to SMS and value-added service administration platforms to SFR under the two contracts already signed.

With a view to facilitating the long-term cooperation between ZTE France and SFR, ZTE Corporation proposed to provide a guarantee in respect of the performance obligations of ZTE France under the SMS contract and the PATES contract for an amount not exceeding EUR10 million.