Selected Unaudited Key Performance Indicators

Notes:
* for the relevant reporting period

The Group leveraged its high-quality network and strong brand advantages, further strengthened its innovation capabilities and responded to competition rationally. By taking further advantage of economies of scale and enhancing management, in the first three quarters of 2007, the Group's financial results continued to maintain a rapid and healthy development trend. The Group's operating revenue reached RMB258.465 billion, representing an increase of 21.5% compared to the same period of last year. EBITDA reached RMB139.291 billion, representing an increase of 14.9% compared to the same period of last year. Profit attributable to shareholders reached RMB59.880 billion, representing an increase of 29.8% compared to the same period of last year. Margin of profit attributable to shareholders continued to maintain at a relatively high level of 23.2%.

Benefiting from the rapid growth of the economy of China, enormous demand in the telecommunications market and rationalized competition environment, the Group maintained a rapid and healthy business development in the first three quarters of 2007. The Group made great efforts to extend the rural market. The subscriber growth continued to maintain a rapid growth momentum and the average monthly net additional subscribers for the first three quarters was close to 5.40 million, and total subscribers reached 349.66 million as at 30 September 2007. Through appropriate adjustment to the fee rate structure, voice usage volume was effectively boosted and total voice usage increased by 45.2% compared to the same period of the previous year. Value-added business also continued its rapid growth and Short Message Service usage volume increased by 43.2% compared to the same period of the previous year. Value-added business such as "Color Ring", WAP and MMS made an increasingly remarkable contribution to the operating revenue, and business such as "Wireless Music Club", "Fetion", "Mobile Paper" also showed rapid growth. Continued robust increase in new customers, new business (value-added business) and new voice usage remained the driving force of our growth. As the new subscribers are mainly low-end users and with the launching of caller-party-pays (CPP) and CPP with monthly fees packages, ARPU and average revenue per minute of usage will continue to decrease. Nevertheless, the Group will exercise reasonable control over the decline in ARPU and tariffs by improving the design and management of the tariffs sales and marketing scheme and launching such scheme step by step on the one hand, and effectively boosting the voice usage volume and further promoting valued-added business on the other hand. The Group will continue to increase its costs and resources in the areas of sales and marketing channels development and customer retention in order to further enhance its core competitiveness. Furthermore, the Group will also maintain stable EBITDA margin and margin of profit attributable to shareholders through refined management and by leveraging economies of scale. Moreover, in order to support favorable growth in the number of subscribers, voice usage volume and new business and maintain the leading position and outstanding quality of its network, the Group will further increase its investments in network, pay attention to the benefits of its investments and increase the network capability to maintain the Group's competitive advantages and the Group's ability in maintaining a healthy and sustainable growth.

The Group will pursue the spirit of innovation, carry on with its ongoing efforts for an overall development of the rural market, extend value-added business and optimize its network, and accelerate its development in scale, in order to maintain a sustainable growth of the Company's business results. In addition, the Group will strengthen its efforts to enhance overall strengths and influence to ensure the availability of sustained drive for the Company's growth and maintain its sound fundamentals in order to achieve better returns for investors.