For the period from 1 January 2008 to 31 March 2008		For the period from 1 January 2007 to 31 March 2007 (restated)*		Growth
Operating revenues (RMB)	43,646 million		42,951 million		1.6%
EBITDA (RMB)	22,671 million		22,575 million		0.4%
EBITDA margin		51.9%		52.6%
Profit attributable to equity holders of the Company (RMB)	6,251 million		6,220 million		0.5%

Business Data

As at 31 March 2008/ For the period from 1 January 2008 to 31 March 2008		As at 31 December 2007/ For the period from 1 October 2007 to 31 December 2007		As at 30 September 2007/ For the period from 1 July 2007 to 30 September 2007
Local Access Lines in Service (Million)	217.17		220.33		223.44
including:
Household (Million)	121.28		121.75		123.14
Government & Enterprise (Million)	25.41		24.81		24.06
Public Telephone (Million)	15.73		15.73		15.79
Wireless Local Access (Million)	54.75		58.04		60.45
Net Decrease of Local Access Lines in Service (Million)	(3.16)		(3.11)		(1.05)
Broadband Subscribers (Million)	37.71		35.65		33.89
Net Add of Broadband Subscribers (Million)	2.06		1.76		1.70
Local Voice Usage (Billion Pulses)	94.03		98.77		104.98
Domestic Long Distance Usage (Billion Minutes)	23.66		24.64		25.42
International (including Hong Kong, Macau and Taiwan) Long Distance Usage (Billion Minutes)	0.36		0.37		0.43
SMS Usage Volume (Billion Messages)	4.866		5.536		6.028
Color Ring Tone Subscribers (Million)	67.20		63.19		56.43

For the first quarter of 2008, despite facing the challenges from the intense market competition and the increased diversity in communication means, the Group had successfully maintained its solid fundamentals. The Group grasped the opportunities brought by informatisation to tackle various challenges, and promoted the scale development of transformation businesses to drive revenue growth. Additionally, capitalizing on the customer brands operation and effective packaged sales of voice and transformation businesses, the Group endeavored to foster customer loyalty and mitigate the loss in voice revenue, progressively transforming voice usage value to integrated information services.

Facing the intense market competition, the Group continued to record negative growth in its subscribers for the first quarter. The Group emphasized the principle of profitable development of its voice business. The Group concentrated its sales resources and tilted its resource allocation towards the key customer segments of government and enterprise as well as mid-to-high-end household while strictly controlling sales initiatives for the low-end customers. Businesses like Internet access, value-added and integrated information application services continued its robust growth momentum. The broadband subscribers reached 37.71 million, representing a net increase of 2.06 million. Excluding the amortization of upfront connection fees of RMB514 million, operating revenues for the first quarter of 2008 was RMB43,646 million, representing an increase of 1.6% over the corresponding period of last year. The profit attributable to equity holders of the Company reached RMB6,251 million, representing an increase of 0.5% over the corresponding period of last year. EBITDA was RMB22,671 million, representing an increase of 0.4% over the corresponding period of last year. EBITDA margin was 51.9%, sustained at a relatively high level.

The Group will proactively implement the strategy of "Customer-focused Innovative Informatisation", make greater efforts in management reform and innovation, strengthen the customer-oriented operating systems, and accelerate the development of the Internet, value-added and integrated information application services. The Group will also strengthen branding operation and multi-services bundling and packaging to actively capitalize on its strength of multi-services convergence offering while proactively building up a solid foundation for future full services convergence offering to enhance its enterprise value, customer value and shareholder value altogether.

The Board wishes to remind investors that the above financial and business data are based on the Group's unaudited management accounts. Investors are cautioned not to unduly rely on such data. In the meantime, investors are advised to exercise caution in dealing in the securities of the Company. As of the date of this announcement, the Board consists of Mr. Wang Xiaochu as the chairman and chief executive officer, Mr. Leng Rongquan as the president and chief operating officer, Madam Wu Andi as the executive vice president and chief financial officer, Mr. Zhang Jiping, Mr. Zhang Chenshuang, Mr. Li Ping, Mr. Yang Jie, and Mr. Sun Kangmin as the executive vice presidents, Mr. Li Jinming as the non-executive director, and Mr. Zhang Youcai, Mr. Lo Hong Sui, Vincent, Mr. Shi Wanpeng, Mr. Xu Erming and Mr. Tse Hau Yin, Aloysius as the independent non-executive directors. By Order of the Board China Telecom Corporation Limited Wang Xiaochu Chairman and Chief Executive Officer Beijing, PRC, 21 April 2008

Additional Resources
FREE reports posted at chinavestor.com/tour.asp	Professional Stock Research: Advanced Membership
Exclusive China Newsletter w/ stock picks: Basic Membership	Portfolios: Conservative and Growth