11:12     CHINA UNICOM<00762> - Announcement (9)                              

    settlement shall be made by one of the following two methods that is      
    more favourable to the New Operating Entity:                              
                                                                              
    (i)                                                                       
    the cellular network from which the outgoing calls originate and the      
    cellular network which receives the incoming calls shall each retain      
    4% of the long distance call fee incurred and the remaining 92% of        
    the long distance call fee shall be credited to the New Operating         
    Entity;                                                                   
                                                                              
    (ii)                                                                      
    pursuant to the settlement standard stipulated in the Notice              
    Concerning the Issue of the Measures on Settlement of Interconnection     
    between Public Telecommunications Networks and Sharing of Relaying        
    Fees (Xin Bu Dian 2003 No. 454) promulgated by the MII on 28 October      
    2003, the cellular network from which the outgoing calls originate        
    and the cellular network which receives the incoming calls shall each     
    retain RMB0.06 from the long distance call fee. The remaining long        
    distance call fee shall be credited to the New Operating Entity.          
                                                                              
    (b)                                                                       
    Other interconnection settlement between the networks of both             
    parties                                                                   
                                                                              
                                                                              
    Both parties agree to conduct settlement in accordance with the           
    relevant provisions in the Notice Concerning the Issue of the             
    Measures on Settlement of Interconnection between Public                  
    Telecommunications Networks and Sharing of Relaying Fees (Xin Bu Dian     
    2003 No. 454) promulgated by the MII on 28 October 2003 (and its          
    amendments from time to time).                                            
                                                                              
    (c)                                                                       
    Both parties further agree that if the settlement method (and its         
    amendment from time to time) formulated by the relevant government        
    authorities in respect of similar settlement between the networks is      
    more favourable to the New Operating Entity when compared with the        
    above interconnection settlement arrangements, settlement shall be        
    conducted pursuant to that settlement method.                             
                                                                              
    Historical information                                                    
    For the year ended 31 December 2002, interconnection revenue and          
    interconnection expense from interconnection conducted by the Group       
    pursuant to the Old Comprehensive Services Agreement were                 
    approximately RMB1,280.38 million (HK$1,206.65 million) and RMB174.46     
    million (HK$164.42 million) respectively.                                 
                                                                              
    For the year ended 31 December 2003, interconnection revenue and          
    interconnection expense from interconnection conducted by the Group       
    pursuant to the Old Comprehensive Services Agreement were                 
    approximately RMB751.70 million (HK$708.41 million) and RMB178.30         
    million (HK$168.03 million) respectively.                                 
                                                                              
    For the year ended 31 December 2004, interconnection revenue and          
    interconnection expense from interconnection conducted by the Group       
    pursuant to the Old Comprehensive Services Agreement were                 
    approximately RMB193.47 million (HK$182.33 million) and RMB40.08          
    million (HK$37.77 million) respectively.                                  
                                                                              
    (4)                                                                       
    Roaming arrangements                                                      
    Background                                                                
    Under the New Comprehensive Services Agreement, the New Operating         
    Entity and Unicom Group provide roaming services to each other's GSM      
    and CDMA cellular subscribers within its respective cellular service      
    areas.                                                                    
                                                                              
    Pricing standards                                                         
    (a)                                                                       
    The cellular subscribers using roaming services will pay roaming          
    fees at the agreed rate of RMB0.60 per minute of roaming usage for        
    both incoming and outgoing calls based on MII guidelines.                 
                                                                              
    (i)                                                                       
    If the cellular subscribers of the New Operating Entity roam in the       
    service areas of Unicom Group, the New Operating Entity will be           
    entitled to receive the roaming fees, which will be apportioned in        
    the following way: (A) RMB0.40 shall be paid to Unicom Group; and (B)     
    RMB0.20 shall be withheld by the New Operating Entity;                    
                                                                              
    (ii)                                                                      
    If the cellular subscribers of Unicom Group roam in the Twelve            
    Provinces and Municipalities, 9A Areas and 9B Areas, Unicom Group         
    will be entitled to receive the roaming fees, which will be               
    apportioned in the following way: (A) RMB0.56 shall be paid to the        
    New Operating Entity; and (B) RMB0.04 shall be withheld by Unicom         
    Group.                                                                    
                                                                              
    (b)                                                                       
    If the network of a third party cellular network operator is made         
    available to the cellular subscribers of Unicom Group pursuant to the     
    international roaming arrangements of Unicom Group, or if the network     
    of Unicom Group is made available to the subscribers of any third         
    party cellular network operator pursuant to such arrangements, the