[R]7:00PM New York – China Mobile in the first half operating revenue rose 17.9% and total subscribers were up 24.7% on voice usage increase of 40%.[/R]

China Mobile Limited first half 2008 operating revenue rose 17.9% to Rmb196.46 billion compared to Rmb 166.58 billion a year ago. Of the total revenue, usage fee accounted for 63.3%, value added services contributed 27% and monthly fees were 5%. Of the total revenue growth of 18%, voice usage fees contributed 10 percentage points and text message revenue growth contributed 4 percentage points and other data service added 3 percentage points to the growth.

Net profit in the period rose 44.7% to Rmb 54.84 billion and net profit margin increased 5.1% to 27.9% in the first half of 2008 compared to 22.8% a year ago period. The world’s largest mobile telephone service provider reported earnings per share increase of 44% to Rmb 2.74.

Net cash flow generated in the period increased to Rmb99.59 billion compared to Rmb 86.5 billion a year ago. Free cash flow increased to Rmb 34.13 billion from Rmb 35.388 billion a year ago.

Average operating expense per minute declined 20% and average monthly operating expense per user fell 9.9% in the period.

Monthly churn rate rose to 2.95% from 2.64% in the year ago period.

Subscriber Growth Rises

Net subscriber base growth continued in the first half of 2008 and the company added net subscribers of 45.25 million and with the total of 414 million subscribers at the end of the period. The subscriber base in the prior period rose at 21.4% and in the latest six months increased at 24.7%. The company increased its market share to 71% from 68% in the previous year. More than half the new added subscribers are in rural area.

Voice Revenue

Total voice revenue in the period increased 16% to Rmb 143.46 billion and average voice revenue fell to 0.12 yuan from 0.15 yuan in the year ago period. Average subscriber used 496 minutes a month compared to 440 minutes a month in the prior year period.

Average revenue per user fell to Rmb 84 from Rmb 88 in the prior year same period.

Value Added Services Rise

Text message revenue in the period surged 91% to Rmb 1.365 billion, ring tone revenue increased 24.8% to Rmb 6.275 billion and Internet access revenue increased 19.3% to Rmb 5.292 billion. Total value added services revenue increased 26.4% to Rmb 52.996 billion.

Text message usage in the period surged 26% to 296 billion messages and internet traffic downloads increased 140% to 5.2 MB.

Capital Expenditure

The mobile operator spent in the period Rmb 65.5 billion of the total budget for the year of Rmb 127.2 billion.

Dividend and Payout Ratio

The company increased its dividend payout ratio to 43% and ordinary dividend growth rate to 60%. Interim dividend per share is increased to Rmb 1.339 from Rmb 0.837 in the first half of 2007.

Capital Structure