Chunghwa Telecom Reports Operating Results for the Calendar Year 2003 and the First Quarter of 2004 TAIPEI, Taiwan, April 27 /Xinhua-PRNewswire-FirstCall/ -- Chunghwa Telecom Co., Ltd (TAIEX: 2412, NYSE: CHT) ('Chunghwa' or 'the Company'), today reported revenues for the year ending December 31, 2003 of NT$182.5billion, net income of NT$47.3 billion and fully-diluted earnings per common share (EPS) of NT$4.90, or US$1.44 per ADS. The Company also reported earnings results for the first quarter of 2004 with revenues of NT$45.6 billion, net income of NT$12.9 billion and earnings per share (EPS) of NT$ 1.34, or US$ 0.41 per ADS. All figures were prepared in accordance with US GAAP. Revenues and Costs Total revenue for 2003 was NT$182.5bn, a 1.7% increase YoY. Of this, 42.5% was from fixed-line services, 36.6% was from wireless services and 19.5% was from Internet and data services, with the remainder from others. Revenue from the Company's wireless, and Internet and data services grew by 4.4% and 14%, respectively. International and domestic long distance revenue declined slightly by 0.2% and 4.1%, respectively, due to traffic migration and fixed line competition. Local call revenue declined by 6.5% YoY, mostly due to the mobile substitution effect and the migration to broadband from dial-up Internet access. Total operating costs and expenses for 2003 increased by 2.3% YoY. This was primarily due to the increase in personnel expenses resulting from discount provided for employee stock subscription. The Company will continue to implement stringent cost control. Total revenue for first quarter of 2004 was NT$45.6bn, a 3.2% increase YoY. Of this, 39.0% was from fixed-line services, 38.2% was from wireless services and 21.5% was from Internet and data services, with the remainder from others. We have continued to shift our revenue mix towards growing businesses including Internet and data and cellular services. As compared to the first quarter of 2003, fixed-line revenue decreased by 6.7%, and wireless, and Internet and data revenue continued to grow by 7.8% and 14.7% respectively. Total operating costs and expenses for first quarter of 2004 were NT$30.6bn, a 1.8% decrease YoY. This was mainly due to decrease in bad debt provision and depreciation and amortization expenses. Businesses Performance Highlights Internet and Data Services -- Internet and data revenue for 2003 increased by 14.0% YoY to approximately NT$35.6bn. Revenue in the first quarter of 2004 was NT$9.8bn, a 14.7% increase YoY. -- Total Internet subscribers number was over 3.55mn as of Dec. 31, 2003, a 7% increase YoY. In the first quarter of 2004, we had 3.63mn subscribers contributed by 75,000 net addition at the end of March. -- ADSL subscribers totaled 2.43mn as of Dec. 31, 2003, a 44% increase YoY. We had continued our ADSL subscriber growth and had 2.59mn subscribers as of the end of March. Wireless Services -- Total wireless revenues for 2003 increased by 4.4% YoY to NT$66.8bn. For the first quarter of 2004, wireless revenues grew by 7.8% YoY to NT$17.4bn. -- At the end of 2003, mobile subscribers reached 8.27mn, a 11.4% YoY increase. At the end of March 2004, we had 8.08mn mobile subscribers. Chunghwa continued to be #1 in both revenue and subscribers Chunghwa continues to be the leading wireless provider in Taiwan in both revenue and subscriber market share with 36% and 33% respectively as of the end of February. Fixed Line Services -- Total fixed line revenues declined by 4.9% to NT$77.5bn mainly due to fixed line competition, mobile substitution effect and continuous migration of dial-up subscribers to ADSL broadband services. Fixed-line revenue for the first quarter of 2004 was NT$17.8bn, a decrease of 6.7% YoY. -- Chunghwa's total fixed line subscriber base stood at approximately 13.14mn as of Dec. 31, 2003, and increase of 1.2% YoY. As at the end of March 2004, the number of fixed line subscribers totaled 13.18mn. Financial Statements Financial statements and additional operational data can be found on our website at http://www.cht.com.tw/ir/filedownload . About Chunghwa Telecom Chunghwa Telecom (TAIEX 2412, NYSE: CHT) is the leading telecom service provider in Taiwan. Chunghwa Telecom provides fixed line, mobile and Internet and data services to residential and business customers in Taiwan. Note Concerning Forward-looking Statements Except for statements in respect of historical matters, the statements made in this press conference contain 'forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of Chunghwa Telecom to be materially different from what may be implied by such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, among other things: extensive regulation of state owned enterprises by the ROC government and extensive regulation of telecom industry; the intensely competitive telecom industry; our relationship with our labor union; general economic and political conditions, including those related to the telecom industry; possible disruptions in commercial activities caused by natural and human induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases, such as SARS; and those risks identified in the section entitled 'Risk Factors' in Chunghwa Telecom's Form F-1 filed with the U.S. Securities and Exchange Commission in connection with our U.S. initial public offering. The financial statements included in this press conference were unaudited, and prepared and published in accordance with U.S. GAAP. Chunghwa Telecom also prepared certain financial statements for the same periods discussed in this press conference under ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and U.S. GAAP. As a result, our results under U.S. GAAP and ROC GAAP may in many events be substantially different. The forward-looking statements in this press conference reflect the current belief of Chunghwa Telecom as of the date of this press conference and we undertake no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date. For inquiries: Fufu Shen Investor Relations +886 2 2344 5488 DATASOURCE: Chunghwa Telecom Co., Ltd CONTACT: Fufu Shen, Investor Relations of Chunghwa Telecom Co., Ltd, +886-2-2344-5488,

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