Strategic Alliance with CMHK

Vodafone Group PLC
4 October 2000


NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES


                               
China Mobile (Hong Kong) Limited and Vodafone Group Plc Sign
                      Strategic Alliance 
      Vodafone to Invest US$2.5 Billion in China Mobile
                               
China  Mobile (Hong Kong) Limited ('CMHK') and Vodafone  Group
Plc  ('Vodafone')  today  jointly  announced  that  they  have
entered into a Memorandum of Understanding ('MOU'), which sets
forth  the  principal terms for a strategic alliance  and  co-
operation   between  the  two  parties  in  mobile   services,
technology, operations and management.

Concurrent with the signing of the MOU, Vodafone has agreed to
purchase,  in  cash, US$2.5 billion of new CMHK shares  to  be
offered  in  CMHK's  global share offering to  finance  CMHK's
acquisition    of   mobile   assets   in   seven    provinces,
municipalities  and  autonomous  region  in  China   (Beijing,
Shanghai, Tianjin, Liaoning, Shandong, Hebei and Guangxi) from
China   Mobile  Hong  Kong  (BVI)  Limited,  its   controlling
shareholder.   The arrangements contemplated by  the  MOU  are
subject  to  the  entering  into of definitive  agreements  by
February 28, 2001.

The  MOU  contemplates CMHK and Vodafone entering into various
areas   of   co-operation  as  permitted  by  PRC   laws   and
regulations, including:

*    The  sharing  of  management experience and  exchange  of
     human resources at various levels;

*    Technical  co-operation among the parties  and  exclusive
     licensing  by  Vodafone to CMHK in China of  technologies
     relating to mobile voice and data communications; and

*    Operational  co-operation focusing  on  the  exchange  of
     expertise  relating to subscriber management,  marketing,
     branding,  network operations, procurement, and  research
     and  development of advanced mobile data applications and
     services.

Separately,   CMHK   and   Vodafone  will   explore   suitable
opportunities  for  joint  ventures  and  other   equity-based
strategic  alliances,  subject to  separate  negotiations  and
agreement  with  other  relevant parties  and  to  the  extent
permitted by PRC laws and regulations.  This will include  the
areas  of  research and development of wireless data services,
international investment opportunities outside  of  China  and
regional  and/or global alliances.  The MOU also  contemplates
the   establishment   of  a  multi-layer  strategic   alliance
governance  structure, which, amongst others, will include  an
executive-level chairmen's forum and a steering committee.

The  equity investment by Vodafone in CMHK further strengthens
the  relationship and proposed strategic alliance between  the
two  parties.   The  completion of the  equity  investment  by
Vodafone  in  CMHK is not dependent on the conclusion  of  the
definitive agreement(s) contemplated by the MOU.

In  total,  CMHK  (giving  pro forma effect  to  the  proposed
acquisition of the seven mobile companies) and Vodafone (on  a
proportional   basis)   served   approximately   105   million
subscribers in 26 countries as of the end of September 2000.

The  Chairman and CEO of CMHK, Mr. Wang Xiaochu, said, 'We are
very pleased to enter a strategic alliance with Vodafone Group
Plc,  a  leading global telecommunications services  operator.
The  two  companies  will  develop  a  close  relationship  of
exchange   and  co-operation  in  the  areas  of   management,
operation  and  research  and development  in  new  businesses
including  wireless  data  services.   We  believe  that   the
strategic  alliance and co-operation between the two companies
will  further improve the quality of management  at  CMHK  and
solidify  the  company  as one of the  leading  global  mobile
services providers.'

Chris  Gent, Chief Executive of Vodafone, said, 'We  are  very
impressed   with  the  significant  achievements   of   CMHK's
excellent management and we look forward to working with  CMHK
to strengthen its position as a leading mobile operator in one
of  the  fastest  growing, largest, and most  exciting  mobile
markets  in the world.  We are delighted to have been selected
by  CMHK to be its long-term strategic partner and are pleased
that  Vodafone has the opportunity to participate in a  market
with   tremendous   potential  and  very   attractive   growth
prospects.'


About CMHK

China  Mobile  (Hong  Kong) Limited is  the  leading  cellular
operator  in  six  provinces  in China  (Guangdong,  Zhejiang,
Jiangsu,  Fujian, Henan and Hainan) and, conditional upon  the
successful   completion   of  its  proposed   acquisition   of
additional mobile network assets from its parent entity, China
Mobile  Hong  Kong  (BVI)  Limited,  will  operate  in   seven
additional  provinces,  municipalities and  autonomous  region
(Beijing,  Shanghai,  Tianjin, Liaoning, Shandong,  Hebei  and
Guangxi).   The proposed acquisition will provide  CMHK  with:
(1)  a  geographically contiguous market covering all  of  the
coastal regions of mainland China; (2) a share of 56%  of  all
cellular  subscribers in mainland China as of June  30,  2000;
and  (3)  a  service  area  covering 608  million  people,  or
approximately  48% of the total population in mainland  China.
In  addition,  CMHK will, upon the successful closing  of  the
acquisition,  serve 39.3 million pro-forma subscribers  as  of
September  20,  2000.   The  significant  majority  of  CMHK's
customers  subscribe  to  its  GSM  service.   CMHK  and   its
acquisition  assets  are  also  major  service  providers   of
Internet  Protocol communications services and  wireless  data
services to Chinese subscribers.

About Vodafone

Vodafone   Group   Plc   is   the   world's   largest   mobile
telecommunications company.  Vodafone has a  global  portfolio
with  operations in 25 countries around the world, across five
continents.  At the end of September 2000, Vodafone reported a
proportionate  worldwide  customer base  of  approximately  66
million.

This  announcement is not an offer of any securities for  sale
in  the  United  States or elsewhere. Securities  may  not  be
offered or sold in the United States absent registration  with
the  United  States Securities and Exchange Commission  or  an
exemption  from such registration, and any public offering  of
securities  to be made in the United States or elsewhere  will
be  made  by  means of a prospectus that may be obtained  from
CMHK and that will contain detailed information about CMHK and
the  target  companies  and its management,  as  well  as  the
financial  statements of CMHK and the target  companies.  CMHK
intends  to  register the global share offerings described  in
this  press  release  with the United  States  Securities  and
Exchange Commission.



For further information contact:

Terry Barwick, Director of Corporate Affairs
Tim Brown, Investor Relations Director
Melissa Stimpson, Senior Investor Relations Manager
Mike Caldwell, Corporate Communications Director
At Vodafone Group Plc
Telephone: [phone]

Lulu Bridges
Tavistock Communications
Telephone:  [phone]

Mr. Jacky Yung or Ms. Grace Wong
China Mobile Hong Kong
Tel:  [phone]