Asset Restructuring Progress Report

The company was informed by the China Securities Regulatory Commission that the application for merger and assets restructuring between China Unicom Limited, an affiliate of the company, and China Netcom Group Corporation (Hong Kong) Limited was reviewed and approved. The transaction has obtained all necessary governmental approvals.

In order for the transaction to be carried out, the merger is subject to the approval of the Hong Kong High Court.

In compliance with the CSRC's requirement, the company has revised its Major Asset Restructuring Report. Details can be found on the website of the Shanghai Stock Exchange (www.sse.com.cn), dated 9 Sept 2008.

Board of Supervisors
8 Oct 2008


Source: Shanghai Stock Exchange

Date: 9 Oct 2008

CN01/TW/SW/NK/KM