NEW EDIG

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CNC International formally established
The China Netcom Group International Communications Co., Ltd (CNC International)£¬held an establishment Conference on Nov. 6th, 2003 , at the same time as the Telecom Operators Summit, at the HQ of CNC International in Yizhuang, Beijing. The establishment of CNC International signifies that CNC Group has made a key step in accelerating internal integration and reorganization as well as establishing a modern corporate system. Also, it is a key strategic step by CNC in realizing their national strategy of ¡°Global Expansion¡± and institutional reforms in telecommunication. Zhang Chunjiang, General Manager of CNC Group, Yan Yixun, Chairman of the Board of CNC International and President Tian Suning delivered speeches at the meeting. Leaders of MII and the State Council¡¯s Assets Supervision and Management Committee also attended the meeting to extend their congratulations.

The Telecom Operators Summit was also held on the afternoon of the day. Representatives of Equant, NTT, MCI, Chunghwa Telecom, Asia Netcom and CNC International jointly discussed the development and cooperation of the international telecommunications market under the general heading of economic globalization.

As one of the most powerful telecom operators in China, after a certain period of planning and adjustment, and under the guidance of key the State Council documents, CNC Group decided to establish CNC International Communications Co., Ltd to comprehensively operate corresponding international network assets and operate all international business.

CNC International is a corporation that is organized with the assets, network, business and personnel related to international communication of CNC Group and CNC Holdings. Co., Ltd and dedicated to the operation of an international telecommunication service. It is one of the three major business corporations that integrates the best talents and powerful resource superiority of the CNC Group and the former CNC Holdings. It is the first and sole domestic telecom enterprise that is dedicated to the development of all international businesses. The establishment of the CNC International opened a whole new window for the operation of the CNC Group¡¯s international services. Its duty mainly lies in the operation and management of the international network asset of the CNC Group, and the operation of all domestic international services and all overseas international services targeted at international operators and overseas enterprise customers. It operates a domestic and overseas international infrastructure, all overseas international services, all data business initiated overseas and finishing in China, all international incoming calls, all international operators and overseas enterprises, all data service initiated in China and l finishing overseas and the settlement service for all international outgoing calls.

CNC International has Tian Suning as its President. It also has personnel from the Department of International Service from the HQ of CNC Group, Beijing Communications Corporation and CNC Holdings. These personnel constitute the backbone of CNC International. This promotes the management and operating system that is required by a modern corporation.

In his speech, Zhang Chunjiang, General Manager of CNC Group said, ¡°I believe, with the considerate care of CPC Central Committee and the State Council, and under direct leadership of the State Asset Committee and MII, and with the vigorous support of all social circles and the joint effort of the staff members, CNC will surely not fail in its mission and will develop a whole new basis for the reform and development of the CNC Group. I also believe that the establishment and operation of CNC International will make a greater contribution to the comprehensive construction of a well-off society!¡±

Yan Yixun, Chairman of the Board of CNC International said, ¡°The establishment of CNC International signifies that the reorganization of the CNC Group has taken another new step forward. We will continue to work hard and explore new paths for the development of China¡¯s telecom service under the conditions of opening up and reforms.¡±

Tian Suning, President of CNC International said, ¡°We know very well that the development of CNC International in the future is a very long process. We have already established the development strategy. This will use a China-centered regional network that links all major cities in Asia to provide an integrated solution to large enterprise customers, become a leading regional operator in the Pan-Asian area, and realize the strategic aim of China telecom operator¡¯s Global Expansion.