China Netcom Group was selected as the exclusive fixed-line telecommunications partner in China for the 2008 Olympic Games in Beijing. We intend to use this unique opportunity to enhance recognition of the "CNC" brand name and logo in China and internationally. We intend to increase the penetration rate for broadband services and accelerate upgrades in technology by capitalizing on the increased demand for broadband content and services that we expect to result from the 2008 Olympic Games. In addition, we believe that by our parent company becoming the exclusive fixed-line telecommunications partner in China and our ability to associate ourselves with their efforts, we will further solidify our dominant position in our northern service region.

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