Shearman & Sterling advising China Netcom on proposed US$24bn merger with China Unicom

Hong Kong, 3 June 2008 – Shearman & Sterling LLP 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 Huang Ling, Chris Flood, Rachel Gu and Ding Bei. Commenting, Lee Edwards said: “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”

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