Telefonica SA's Subsidiary And United Network Communications Group Company Limited Signs Definitive Agreement To Acquire Shares Of China Unicom (Hong Kong) Limited

Telefonica SA announced that the Company through its 100% subsidiary, Telefónica Internacional, S.A.U. (hereinafter Telefonica), and China United Network Communications Group Company Limited (Unicom Parent) through a 100% owned subsidiary, have signed a definitive agreement under which the latter will acquire 1,073,777,121 shares of China Unicom (Hong Kong) Limited (China Unicom), owned by Telefonica (equivalent to 4.56% of the share capital of China Unicom), at a price of HKD10.21 per share, for a total amount of HKD10,963.3 million, approximately EUR1,128.9 million at current exchange rates. The acquisition of the shares is expected to be completed by no later than July 31, 2012. Telefónica has undertaken not to sell over a period of 12 months from the date of the agreement the shares of China Unicom.