13:19     CHINA TELECOM<00728> - Results Announcement (2)                     

                                                                              
    3.  Earnings per share                                                    
                                                                              
    The calculation of basic earnings per share for the year ended 31 December
    2004 is based on the net profit of RMB28,023 million and the weighted     
    average number of shares in issue during the year of 78,839,968,917       
    shares.  The weighted average number of shares for the year ended 31      
    December 2004 reflects the issuance of 5,318,181,818 new H shares in May  
    2004.  The calculation of basic earnings per share for the year ended 31  
    December 2003 is based on the net profit of RMB13,882 million divided by  
    75,614,186,503 shares.                                                    
                                                                              
    There were no dilutive potential ordinary shares in existence for the     
    years presented.                                                          
                                                                              
                                                                              
    4.  Dividend                                                              
                                                                              
    Dividends will be denominated and declared in Renminbi.  Dividends on     
    domestic shares will be paid in Renminbi and dividends on H shares will be
    paid in Hong Kong dollars. The relevant exchange rate will be the mean of 
    the average rate of Renminbi to Hong Kong dollars as announced by the     
    People's Bank of China for the week prior to the date of declaration of   
    dividends by the annual general meeting.