Chunghwa Opens Overseas

TAIPEI -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("CHT" or "the Company"), the leading telecom service provider of fixed-line, mobile and Internet and data services to residential and business customers in Taiwan, today announced that it has established wholly owned subsidiaries in Japan and Singapore.

To address the telecommunication industry's globalization and increasingly competitive landscape, CHT plans to apply for local telecommunications service licenses through its overseas subsidiaries, which will be headquartered in Tokyo and Singapore. Japan and Singapore, two of the Asia-Pacific region¡¦s major hubs, both possess relatively open policies in endorsing telecom investments from foreign investors, which tend to reduce barriers to entry and the costs associated with obtaining local telecommunications service licenses for foreign companies.

Chunghwa Telecom Japan Co. Ltd ("CHT Japan") and Chunghwa Telecom Singapore Pte Ltd ("CHT Singapore"), each with paid-in capital of approximately NT$200 million, are planning to commence operations in the third quarter of 2008. As a first step, both subsidiaries will apply for local telecommunications service licenses in their respective markets. The subsidiaries plan to provide direct business development, technical and sales support to local Japanese and Singaporean customers. In doing so, CHT Japan and CHT Singapore will be able to provide full circuit services locally, thus decreasing their operating costs and strengthening their competitive positions. As a result, CHT Japan and CHT Singapore will enable Chunghwa Telecom to expand its global reach and to continue bolster its leadership position in the telecommunications sector.

Chunghwa Telecom Co. Ltd. (NYSE: CHT)