Hong Kong, June 3, 2008—Shearman & Sterling is advising China Netcom Group Corporation (Hong Kong) Limited (HKSE: 0906; NYSE: CN), in its consideration of the proposed merger with China Unicom Limited (HKSE: 0762, NYSE: CHU), China’s No. 2 mobile operator, as part of a broader restructuring of China’s telecommunications sector. China Netcom is a leading broadband and fixed-line communications operator in China.

Under the proposal, holders of China Netcom shares and ADSs would receive China Unicom shares or ADSs with an aggregate value of HK$185 billion (US$23.8 billion), based on the most recent closing price of China Unicom shares. The transaction would close by the end of 2008 and would be subject to a number of customary closing conditions, including the approval of shareholders of both Netcom and Unicom and receipt of required regulatory approvals.

Lee Edwards, M&A partner at Shearman & Sterling in Beijing, is leading the team, working with Beijing-based M&A associates Chris Flood, Rachel Gu and Ding Bei.

“We are delighted to act for our longstanding client, China Netcom, on this important transaction which is central to the current restructuring of the Chinese telecommunications industry,” Edwards said.

For additional information contact:
Caroline Watts | Marketing | Hong Kong | +852 2978 8068 |