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ZTC Telecoms plc (ZTC)

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Monday 04 February, 2008

ZTC Telecoms plc

Major Distribution Agreement

ZTC Telecommunications plc
04 February 2008



                           ZTC TELECOMMUNICATIONS PLC
                            ('ZTC' or 'the Company')


                          Major Distribution Agreement



ZTC Telecommunications Plc (LSE AIM: ZTC.L), a fast growing China based domestic
designer, assembler and marketer of mobile phone handsets, is pleased to
announce a major distribution agreement (the 'Agreement') with Beijing Vosia
Information Technology Co., Ltd ('Vosia').

Vosia is a subsidiary of Beijing Arip Logistics Co., Ltd ('Arip'), a Chinese
national logistics company which focuses on telecommunications products, as well
as being a logistics and procurement partner of China Mobile.


New contract with Voisa

Pursuant to the Agreement, ZTC's wholly owned subsidiary, Shenzhen Zhong Tian
Communications Equipment Co., Ltd will deliver up to 400,000 handsets which
Vosia will undertake to distribute and promote through China Mobile business
outlets in three provinces. It is anticipated that sales will be effected
through direct retail and/or combined with an operator bundled service. The
Board of ZTC envisages that the first delivery under this contract will be made
in March 2008.

Specifically, ZTC will supply up to 200,000 handsets of its ZT2988 model and up
to 200,000 handsets of its ZT-B601 model. The ZT2988 is one of ZTC's latest
models, comprising touch screen, an MP3 and MP4 player, video, camera, a large
2.4' screen and an extra long standby battery life.  The ZT-B601 is ZTC's
market-entry model that also incorporates FM radio, camera and an MP3 player.


Working capital

Demand for the Company's products has continued to accelerate since the IPO, and
this Agreement represents the largest contract which the Company has secured to
date. However, in common with many small and medium size businesses within
China, our rate of growth is tempered by working capital constraints.  The
Company's ability to ensure timely fulfilment of this and existing contracts is
subject to it securing additional working capital.  The Board is therefore
currently reviewing financing arrangements in order to meet future requirements.

Charles Huang, CEO of ZTC commented, 'China's mobile phone market is the fastest
growing in the world, with an average of seven million new subscribers per month
during 2007. The key to accessing this market for ZTC is securing the best
distribution, and the Vosia agreement will not only diversify our distribution
with a strong partner, but strengthen our position in the fast growing 2nd-4th
tier markets within China.'


                                     -ends-


For further information, please contact:



ZTC

Mark Syropoulo, Finance Director                           +86 21 6867 0012
Frank Lewis, Chairman                                      +44 20 7429 6666


Blue Oar Securities                                        +44 20 7448 4400
Romil Patel or Shane Gallwey


Conduit PR                                                 +44 20 7429 6609
Christian Taylor-Wilkinson or Jos Simson



About ZTC Telecommunications Plc:

ZTC Telecommunications plc is a public company listed on AIM, part of the London
Stock Exchange (trading symbol: 'ZTC'). Incorporated in the UK since 2000
(Registered, England No 3928553). The Company acquired China based Shenzhen
Zhong Tian Equipments Co Ltd, a designer, assembler and marketer of mobile phone
handsets under 'ZTC' brand, on 21st March 2007, at which time it was admitted to
AIM. ZTC's handsets are primarily aimed at the estimated 800 million Chinese who
reside in the lesser developed north, central and western regions of PRC. This
focus is achieved through ZTC's strategy of producing handsets that are '
Fashionable, Economical and Practical.'

The Chinese mobile market currently has 525 million subscribers, with
penetration at 39%, mainly concentrated within the larger cities in the country.
Penetration in the rural areas of China, where ZTC exerts a significant
presence, remains even lower at 19%.



                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                                                

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