China : The Board (the “Board”) of directors of China Telecom Corporation Limited (the “Company”) announced that the Company was notified by the Ministry of Industry and Information Technology of the PRC that China Telecom has been permitted to operate the CDMA2000 3G mobile business.

The Company believes that the issue of 3G mobile licence will enhance the economic growth and the competitive landscape of the telecommunications market. It will also be beneficial to the long term sustainable development of the Company as well as the industry as a whole.

The Company will strictly adhere to the relevant regulatory policies, and make comprehensive planning and dedicated preparation for the timely launch of the 3G mobile business, fully leveraging its existing communication network resources. The Company will endeavor to provide more premium services and better satisfy the customers’ ever-increasing diverse needs for integrated information service.