Analog Devices Selected for 3G TD-SCDMA Phone from China's Largest Telecommunications Provider.

NORWOOD, Mass. -- -ZTE Corporation to build cellular handsets and data cards based on Analog Devices' SoftFone-LCR chipset and Datang Mobile's solution for the 3G TD-SCDMA standard.

Analog Devices, Inc. (NYSE: ADI), a global leader in high-performance semiconductors for signal processing applications, announced today that ZTE Corporation , China (Shenzhen: 000063; Hong Kong: 0763), China's largest listed telecommunications manufacturer and leading wireless solutions provider, has designed Analog Devices' SoftFone(R)-LCR chipset and Datang Mobile's solution into its new Third Generation (3G) Cellular TD-SCDMA U310 handset and MU100 data card, which will be on display in ZTE Corporation's booth at this week's PT/Wireless & Networks COMM China 2005 event in Beijing.

ZTE Corporation and Analog Devices have been working together for many years on a variety of products. ZTE Corporation is one of the few companies in the world that develops products for each of the 3G standards (WCDMA, CDMA2000 and TD-SCDMA).

"ZTE is widely recognized as a leader and key innovator in the telecommunications market with its strong commitment to R&D and product quality," said Christian Kermarrec, vice president, RF and wireless systems, Analog Devices Inc. "We are delighted to be expanding our business with ZTE. Using Analog Devices' SoftFone-LCR chipset and Datang Mobile's solution, ZTE is able to deliver TD-SCDMA devices to market that offer true 3G performance and functionality."

"We are pleased to expand our longstanding relationship with Analog Devices to now include products for the TD-SCDMA standard," said Shiyou He, Senior vice president of ZTE Corporation and general manager of ZTE handset division. "We are very impressed with the combination of flexibility, performance and innovation offered by the SoftFone-LCR chipset. Leveraging Analog Devices' chipset and Datang Mobile's solution from Analog Devices and Datang Mobile, we will develop a series of TD-SCDMA handsets and data cards that will achieve the high levels of quality and reliability that our customers expect from ZTE."

About the SoftFone-LCR Chipset

Analog Devices' SoftFone-LCR chipset is based on the popular RAM-based SoftFone architecture also used in Analog Devices' GSM/GPRS and EDGE chipsets. The chipset incorporates a digital baseband processor, which is based on Analog Devices' Blackfin(R) Processor, achieving more than 250 MHz performance and exceptionally low power consumption through Blackfin's Dynamic Power Management capability. The SoftFone-LCR's baseband signal processing, including joint detection and decoding, is performed entirely in software running on the embedded Blackfin Processor core instead of a hardware implementation. Not possible with any other chipsets, this software-based approach allows terminal developers to quickly and easily adapt to evolutionary changes in the LCR standard.

The software for the SoftFone-LCR chipset is provided by Datang Mobile, which is the founder of TD-SCDMA and has the world's leading TD-SCDMA terminal protocol stack, MeCo(R), and other fundamental technologies. In addition, the companies also worked together on the development of the DTivy(TM)--A Series reference design, which provides all of the necessary hardware and software componentry to build a TD-SCDMA phone. These products provide significant bill-of-materials (BOM) savings and faster time-to-market to manufacturers of next-generation 3G TD-SCDMA products, such as high-end camera phones, camcorder phones, multimedia phones, and video phones.

The SoftFone-LCR's analog baseband and power management IC provides a full set of audio features, as well as efficient power management. The SoftFone-LCR chipset also includes the Othello(R)-W direct-conversion radio transceiver, offering solid performance and flexibility for either LCR time division duplex (TDD) or W-CDMA frequency division duplex (FDD) terminals. Additionally, the SoftFone-LCR chipset includes interfaces for cameras, color displays, IR, USB and SD/MMC, allowing handset manufacturers to create several designs with varying levels of feature sets for a wide range of phone models.

About TD-SCDMA

The TD-SCDMA (Time-Division - Synchronous Code-Division Multiple Access) standard was proposed by the China Wireless Telecommunication Standards group (CWTS) and approved by the 3GPP (3rd Generation Partnership Project) as the low-chip-rate TDD standard of the 3G standard family. Designed for 1.6 MHz channels, it is compatible with 5 MHz unpaired 3G bands in any region of the world. TD-SCDMA can serve as a complement to W-CDMA deployments since it uses the same network backbone.

The use of time-division duplexing allows the network to adapt dynamically to varying combinations of voice and data traffic, allocating uplink and downlink time slots as needed and using spectrum more efficiently than frequency-division duplexing. In addition, the cost of terminals is reduced by eliminating the need for duplex filters.

The TD-SCDMA standard has been further developed by numerous Chinese and multinational corporations and consortia. Additional details are available at www.tdscdma-forum.org.

About ZTE Corporation

ZTE Corporation is China's largest listed telecommunications equipment provider specializing in offering customized network solutions for telecom carriers worldwide. The company develops and manufactures telecommunications equipment for fixed, mobile, data and optical networks, intelligent networks and next generation networks as well as mobile phones. ZTE has been listed on the Shenzhen Stock Exchange since 1997. With RMB 16.03 billion (US$ 1.9 billion) in revenue in 2003, ZTE continues its rapid growth and development in 2004. For more information, please visit the company's website at http://www.zte.com.cn.

About Datang Mobile

Datang Mobile Communications Equipment Co., Ltd, registered and established in Beijing on February 8, 2002, is one of the core members of Datang Telecom Technology and Industry Group. The company headquarters in Beijing, with one subsidiary in Shanghai and on branch in Xi'an. Taking its excellent innovation and long-term accumulation, Datang Mobile is dedicated to the research and development of TD-SCDMA, a homegrown international 3G standard. With the operation principle of 'joint development, virtual manufacture and entrusted operation', and on the basis of it's self-own core intellectual property right and the whole series products including infrastructure and terminal, Datang Mobile is committed to providing the total solution for the customers in the area of public and private communication networks.

About Analog Devices, Inc.

Innovation, performance, and excellence are the cultural pillars on which Analog Devices has built one of the longest-standing, highest-growth companies within the technology sector. Acknowledged industry-wide as the world leader in data conversion and signal conditioning technology, Analog Devices serves over 60,000 customers, representing virtually all types of electronic equipment. Celebrating 40 years as a leading global manufacturer of high-performance integrated circuits used in analog and digital signal processing applications, Analog Devices is headquartered in Norwood, Massachusetts, with design and manufacturing facilities throughout the world. Analog Devices' common stock is listed on the New York Stock Exchange under the ticker "ADI" and is included in the S&P 500 Index. www.analog.com.

Blackfin, Othello and SoftFone are registered trademarks of Analog Devices, Inc. DTivy is a trademark and MeCo is a registered trademark of Datang Mobile. All other trademarks included herein are the property of their respective owners.