China Netcom to sell Asia Netcom

June 5, 2006 Beijing -- China Netcom Group Corp. (Hong Kong) Ltd. has reached a definitive agreement with Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund Ltd. under which China Netcom will sell 100% of the equity interest in Asia Netcom Corp. Ltd. an indirect wholly owned subsidiary of China Netcom to the investor group for $168.84 million.

June 5, 2006 Beijing -- China Netcom Group Corp. (Hong Kong) Ltd. has reached a definitive agreement with Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund Ltd. under which China Netcom will sell 100% of the equity interest in Asia Netcom Corp. Ltd. an indirect wholly owned subsidiary of China Netcom to the investor group for $168.84 million.

China Netcom's Board of Directors has approved this transaction, which is subject to the relevant governmental approvals and other customary closing conditions.

Asia Netcom, headquartered in Hong Kong, provides submarine cable capacity and international data and voice services to multinational corporations and telecom carrier customers mainly in the pan Asia-Pacific region.

Mr. Zhang Chunjiang, chairman of China Netcom said, "After the disposal of Asia Netcom, China Netcom will maintain its business relationship with Asia Netcom for its international operations. This business relationship will include the purchase of capacity by China Netcom from Asia Netcom. Both parties will cooperate in good faith to explore potential future business partnerships and opportunities."

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