HONG KONG -- China Unicom Limited ("China Unicom" or "the Company") (HKSE: 0762; NYSE: CHU) announced that SK Telecom Company Limited ("SKT"), the holder of the Convertible Bonds, served the Conversion Notice on the Company on 20 August 2007 to convert US$1 billion Convertible Bonds in full into the Conversion Shares at HK$8.63 per Share. As a result, the Company will allot and the issue approximately 900 million Conversion Shares to SKT.

Before the issue of the Conversion Shares to SKT, China Unicom (BVI) Limited holds 76.49% of issued share capital of the Company while the public holds 23.51%. After the issue of the Conversion Shares, the Company's shareholding structure has changed. China Unicom (BVI) Limited holds 71.43% of enlarged issued share capital of the Company, SKT holds 6.61% and the public holds 21.96%.

Mr. Chang Xiaobing, Chairman and CEO of the Company, believes the full conversion of convertible bonds by SKT will further consolidate the strategic alliance between the two parties. It also deepens the cooperation of the Company and SKT in mobile communications business areas and further strengthens the capital structure of the Company.

China Unicom Ltd. (NYSE: CHU)