On December 28，Turbolinux signed an alliance agreement with ZTE and HP to facilitate the application of Linux in telecommunications.

ZTE Corporation is China's largest telecommunications equipment provider specializing in offering customized network solutions for telecom carriers worldwide. Its products deployed in over 40 countries and regions including Cyprus, Bangladesh, Thailand, USA, Russia, Egypt, Kenya, Congo, Zambia,Benin and Nepal. ZTE has been listed on the Shenzhen Stock Exchange since 1997. And listed its shares on the Hong Kong stock exchange on December 9,2004. In 2004,ZTE`s revenue is expected to achieve around US$ 5 billion.

According to the agreement, Turbolinux and HP hardware which support Linux will be the preference in ZTE.In the same time,Turbolinux, HP and ZTE will invest a Linux Lab Center together in ZTE Research Institute located in Nanjing, which will be responsible for the R&D, test and optimization of ZTE product lines. Turbolinux and HP will provide hardware and software for the Linux Lab Center, and ZTE will dispatch personnel to operate the Linux Lab Center. On the perspective of business, ZTE will introduce Linux in large-scale in its product lines.

The recognition and large deployment of Linux in telecommunication industry drives the collaboration between ZTE,Turbolinux and HP. As the leader in Linux, Turbolinux is always committed to the deployment of Linux and its products in China, and has over 80% share in domestic telecommunication market. With its extensive products and service experience, Turbolinux is confident to create more value for its partners. Turbolinux has been collaborated with ZTE for nearly three years, from the initial intelligent network to CDMA, basic network management platform, fixed value added service etc. Currently, Turbolinux is the primary platform for ZTE Linux-based product lines.

"There are lots of softwares in telecommunications,but the OS is the important and basal software".said Mr.Daxiong Xie,the Senior Vice President of ZTE. " ZTE puts a high value on Linux-based infrastructure equipment.Linux will be applied in telecommunication industry more and more."

"ZTE is one of the largest comprehensive telecommunication equipment and service providers in China, and it plays an important role in the deployment of Linux in China. The collaboration with ZTE is very important to Turbolinux, and we will provide high-level technical support and consulting for ZTE overall Linux strategy by leveraging our advantages and introducing world leading Linux technology. "said Claude Zhou , the GM of Turbolinux China,"the collaboration will maximize the advantages and competence of ZTE, Turbolinux and HP to provide a best-in-class and complete Linux solution for telecommunication industry and create more values for customers and partners."

Turbolinux and HP are close strategic partners in developing China telecommunication market. The collaboration of Turbolinux and HP will result in more optimized and efficient software&hardware platform.

"HP has been committed to the creation of Linux eco-system, which significantly drives the application and development of Linux in China, and also provides the best environment for customers and partners to experience Linux. "said Mamoru Nakano, the GM of Linux and High Performance Computing,HP Asia Pacific&Japan Region. "The lab that we will co-establish with ZTE and Turbolinux is a part of our eco-system. HP will provide maximal support in the future collaboration to provide better Linux experience for customers. "

In recent years, Linux has been developed rapidly. According to the report of IDC,Linux will grow at 25% annually in server market in the coming years, and China Linux market even at up to 40% rate. The fast growth of Linux brings huge opportunity for more related vendors. Linux attracts the great interest of telecommunication players for its aggressive growth, high performance, high reliability and cost-effectiveness to migrate many of their applications onto Linux platform.

In fact, Linux has proved its value in telecommunication industry by helping telecommunication enterprises reducing cost and providing more reliable services and other benefits. There are lots of successful cases of Linux helping reducing telecommunication cost and improving performance, including Germany Telecom, Italia Telecom, U.S. AT&T etc. In China,Linux also provides a number of successful track records, including nation-wide China Mobile SMS Gateway System, China Mobile Business Aanalysis System, China Unicom Video Conference System etc, which all use Turbolinux software as the platform.