Selected Unaudited Key Performance Indicators

Note:
The above unaudited financial data is prepared in accordance with the generally accepted accounting principles in Hong Kong. The financial data and operational data of the Group for the first quarter of 2006 included the results of the Company and its subsidiaries, including the 31 provincial mobile companies and the newly acquired China Mobile Peoples Telephone Company Limited, while the financial data for the first quarter of 2005 and the operational data for the fourth quarter of 2005 included the results of the Company and its subsidiaries, including the 31 provincial mobile companies.

By fully leveraging the advantages of scale that result from the Group being the market leader in Mainland China's mobile telecommunications industry, by adopting effective marketing strategies and plans and by comprehensively pursuing refined management techniques, the Group continued to achieve rapid growth in its financial results for the first quarter of 2006. The Group's operating revenue reached RMB65.015 billion, representing an increase of 18.5 per cent. compared to the same period of last year. EBITDA reached RMB35.784 billion, representing an increase of 20.8 per cent. compared to the same period of last year. EBITDA margin was maintained at a high level of 55.0 per cent. Profit attributable to shareholders reached RMB14.355 billion, representing an increase of 27.6 per cent. compared to the same period of last year.

Benefiting from the rapid growth of China's economy, enormous demand in the telecommunications market and rationalized competition environment, together with the Group's premium and efficient network and brand advantages, the Group achieved favorable growth in its results in the first quarter of 2006. Subscriber growth continued to maintain a rapid momentum and the average monthly net additional subscribers for the first quarter reached 4.21 million, and total subscribers reached 260.64 million As at 31 March 2006. Through proactive and effective sales and marketing of voice usage volume, total voice usage increased by 37.4% compared to the same period of the previous year. New businesses also continued its rapid growth and Short Message Service usage volume increased by 38.2% compared to the same period of the previous year. However, as the new subscribers are mainly low-end users, ARPU and average revenue per minute of usage in this quarter recorded a certain decrease. Nevertheless, the decline has been better controlled. The favorable development in new customers, voice usage volume and new businesses resulted in the sustainable and favorable growth in operating revenue in the first quarter. The Group will continue to increase its costs and resources in the areas of network optimization, sales and marketing channels development and personalized customer services in order to maintain the Group's competitive advantages and the Group's ability in maintaining a healthy and sustainable growth. Furthermore, the Group will continue to maintain stable EBITDA margin and margin of profit attributable to shareholders through refined cost control methods and by leveraging economies of scale.

The Group will further consolidate its market leading position in the mobile telecommunications market by innovatively developing new customers, new voice usage and new businesses. The Group will continue to develop its brand, enhance its sales capabilities, continually improve its basic services and strengthen its ability to innovate in terms of businesses, technologies, management and business model. The Group will pay particular attention in developing its corporate customer base and creating a new competitive advantage in terms of its network and support systems. The Group will strive to maintain its sound fundamentals and sustainable development, with a view to generating greater value for its shareholders. Within a competitive environment, the Group will continue to promote orderly and rational competition and strive to foster a healthy and favorable environment for further industry development. This will better serve the long-term interests of consumers, operating companies and investors.