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Orange Business Services Partners with China Telecom to Offer Next Generation MPLS VPN Services in China


Extends network coverage to 200 additional cities, provides advanced MPLS-based IP VPN services to multinational corporations in China

Hong Kong, February 9, 2007 - Orange Business Services and China Telecom (HKEx: 728, NYSE: CHA), one of the leading telecommunications providers in China, have entered into a commercial partnership to offer advanced MPLS (Multi-Protocol Label Switching) - based IP VPN services to multinational corporations in China.

As part of this partnership, Orange Business Services will expand further its network coverage through China Telecom’s Next Generation Networkto 200 additional cities, including Dongguan, Dalian, Guangzhou, Shenzhen and Xiamen

The extended network will provide a variety of advanced IP services, including virtual private network and high-quality IP voice and video streaming. Orange Business Services will also increase further its quality-of-service to multinational businesses in China, through managed IP services and high-quality customer access and management capabilities.

“The partnership with China Telecom is invaluable for us,” said Yee-May Leong, senior vice president, Asia Pacific, Orange Business Services. “In Asia Pacific, Orange Business Services is uniquely positioned with a very strong communications solutions portfolio as well as the region’s most extensive networks to support enterprise customers. This partnership with China Telecom further reinforces our strong positioning and commitment to the Asia Pacific region.”

This agreement further demonstrates Orange Business Services’ commitment to being an integrated communications provider in China, providing total infrastructure and network management as well as integration and maintenance services. The company is one of the first communications services providers to obtain an “Integration Services License” from China Ministry of Foreign Commerce to import and distribute 61 categories of equipment to enterprise customers in China.

Thanks to this partnership, Orange Business Services’ multinational customers will benefit from China Telecom’ sophisticated Next Generation Network. Launched in 2006, China Telecom’s Next Generation Network is a commercial network that offers quality, security and reliability in voice communications, data-storage, e-commerce, real-time trading and video streaming. The network currently covers 200 cities in China with points of presence in London, Frankfurt, Hong Kong, Singapore, Los Angeles, San Jose and New York.

This commercial partnership is the result of the strategic partnership signed in between France Telecom and China Telecom.

“This partnership fits with Orange Business Services’ long-term strategy in China and our intention to provide unprecedented support to multinational customers,” said Eric M.K. Ng, vice president for China, Hong Kong and Taiwan, Orange Business Services. “Looking ahead, China Telecom and Orange Business Services will join hands to help customers to excel in their businesses in this emerging market.”

About China Telecom
China Telecom Corporation is the leading provider of wireline telecommunications services in China, providing voice, data, image, multimedia and telecommunications and information services in 31 municipalities, provinces and autonomous regions in China with a subscriber base exceeding 200 million. Our H shares and American Depositary Shares (“ADS”) are listed on the stock Exchange of Hong Kong and the New York Stock Exchange.

About Orange Business Services
Orange Business Services represents the business communications solutions and services provided by the France Telecom Group as of June 1, 2006. They were previously sold under the France Telecom, Orange, Equant, Etrali, Almerys, EGT, Expertel Consulting, France Telecom Intelmatique, SETIB and Solicia brands.
The offers include converged voice, data and mobile services as well as IT expertise and managed services, all designed to transform business processes and improve productivity. Orange Business Services is present in 166 countries and territories and serves customers in 220.


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