Selected Unaudited Key Performance Indicators

Note:
The effect of the adjustment of the income tax rate in Mainland China has been reflected in the financial data for the first quarter of 2008.

Notes:
* for the relevant reporting period

By leveraging our premium network, strong brand recognition, economies of scale and highly effective refined management, the Group continued to maintain a favorable growth in its financial results for the first quarter of 2008. The Group's operating revenue reached RMB93.024 billion, representing an increase of 19.7% compared to the same period of last year. EBITDA reached RMB49.777 billion, representing an increase of 22.2% compared to the same period of last year. With the positive effect of lowering the income tax rate in Mainland China, profit attributable to shareholders reached RMB24.102 billion, representing an increase of 37.2% compared to the same period of last year. Margin of profit attributable to shareholders reached a relatively high level of 25.9%.

The rapid growth in China's economy and the vigorous demand for telecommunications services continued to create a prosperous environment for the Group. The Group achieved a rapid and healthy business development in the first quarter of 2008. Through our continuous expansion into the rural market, our subscriber growth maintains a strong growth momentum and the average monthly net additional subscribers for the first quarter reached 7.60 million, representing an increase of 33.9% compared to the average monthly net additional subscribers of 5.68 million of last year. The Group's subscriber base reached 392.14 million As at 31 March 2008. However, as the new subscribers are mainly low-end users and tariff adjustments are steadily and gradually introduced in the first quarter, ARPU and average revenue per minute of usage recorded a decrease, whilst the voice usage volume was effectively stimulated. Total voice usage volume increased by 41.8% compared to the same period of last year. Value-added business also continued its rapid growth and SMS usage volume increased by 31.9% compared to the same period of last year. Meanwhile, the development of other data businesses also demonstrated an encouraging growth. The favorable growth in subscriber base and voice usage volume and the development of value-added business resulted in an increase of 19.7% in operating revenue in the first quarter. The Group will continue to increase its investments in sales channels, customer service, network optimization, support system and R&D in order to further enhance the Group's core competitiveness. Furthermore, the Group will continue to maintain a stable growth in its profitability through refined cost management and by leveraging economies of scale.

To meet new challenges and opportunities, the Group will adhere to the Scientific Development Concept and consolidate its overall competitiveness in order to adapt rapidly to changes in the operational environment. By leveraging our strong foundation and competitive edge and pursuing a sound, balanced and sustainable development, we will maintain a solid, long-term business foundation with the goal of creating best possible returns for our investors.