ZTE Corporation and Chelsio Enter Strategic Partnership

FOR IMMEDIATE RELEASE

ZTE CORPORATION AND CHELSIO ENTER STRATEGIC PARTNERSHIP TO DELIVER HIGH PERFORMANCE 10GB ETHERNET SOLUTIONS FOR TELECOM

SUNNYVALE, CA – September 8, 2010 – Chelsio Communications, Inc., the leading provider of 10-Gigabit Ethernet (10GbE) adapters, ASICs, and storage solutions, today announced that it established a strategic partnership with ZTE Corporation, a leading global provider of telecommunications equipment and network solutions, to co-develop a range of high performance networking solutions based on Chelsio’s 10Gb Ethernet technology.

“Chelsio Communications has demonstrated its technology leadership in 10Gb Ethernet with a broad range of successful networking solutions, and ZTE is pleased to have Chelsio as a strategic partner,” said Mr. Wei Wang, president of server and storage product lines for ZTE Corporation. “Chelsio is a recognized leader in data center convergence, storage and high performance computing markets, and Chelsio’s Terminator technology is an excellent fit for a broad range of 10Gb Ethernet solutions.”

“ZTE has one of the widest and most complete range of products in the telecommunications industry, and the company delivers innovative, custom-made solutions that help shape the future of world communications,” said Kianoosh Naghshineh, president and CEO of Chelsio.  “Our recently announced Terminator 4 technology and Unified Storage Server software will help bring high performance 10Gb Ethernet connectivity to ZTE solutions.”

Chelsio’s Terminator is a 10GbE controller chip built around a programmable protocol-processing engine.  The Terminator 4 represents Chelsio’s fourth generation TCP offload (TOE) design, third generation iSCSI design, and second generation iWARP RDMA implementation.  In addition to full TCP and iSCSI offload, the T4 supports for Fibre Channel over Ethernet (FCoE) offload.    The software-based Unified Storage Server (USS 1.1) enables users to convert any x86 or Power PC based platform into a storage target, supporting not just iSCSI SANs but NAS protocols as well.

About ZTE Corporation
ZTE is a leading global provider of telecommunications equipment and network solutions with the most comprehensive product range covering virtually every sector of the wireline, wireless, service and terminal markets. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries, helping them to meet the changing needs of their customers while achieving continued revenue growth.  ZTE’s 2009 revenue led the ndustry with a 36% increase to USD 8,820.7 million.  ZTE commits 10 percent of its revenue to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards.  A company with sound corporate social responsibility (CSR) initiatives, ZTE is a member of the UN Global Compact.  ZTE is China’s only listed telecom manufacturer, publicly traded on both 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.

About Chelsio Communications, Inc.
Chelsio Communications is leading the convergence of networking, storage and clustering interconnects with its robust, high-performance and proven unified wire, storage software and appliance technology.  Featuring a highly scalable and programmable architecture, Chelsio is shipping 10-Gigabit Ethernet and multi-port Gigabit Ethernet adapter cards, delivering the low latency and superior throughput required for high-performance computing applications.  For more information, visit the company online at www.chelsio.com.

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