TAIPEI, Taiwan, R.O.C. July 28, 2016 - Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) today reported its un-audited operating results for the second quarter of 2016. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards (“Taiwan-IFRSs”) on a consolidated basis.

(Comparisons throughout the press release, unless otherwise stated, are made with regard to the prior year period)

Second Quarter 2016 Financial Highlights

• Total revenue decreased by 1.3% to NT$56.20 billion

• Mobile communications revenue decreased by 7.1% to NT$26.48 billion.

• Mobile value-added services (VAS) revenue increased by 5.0% to NT$10.35 billion, with mobile Internet revenue, the largest contributor to VAS revenue, increasing by 6.6%

• Internet revenue increased by 5.5% to NT$6.83 billion

• Domestic fixed communications revenue increased by 3.7% to NT$18.41 billion

• International fixed communications revenue increased by 0.9% to NT$3.55 billion

• Total operating costs and expenses decreased by 0.9% to NT$43.31 billion

• Net income attributable to stockholders of the parent decreased by 0.7% to NT$11.06 billion

• Basic earnings per share (EPS) was NT$1.43

Dr. Rick L. Tsai, Chairman and CEO of Chunghwa Telecom stated,

“Continued focus on streamlining our expansion efforts, operations and expense controls enabled us to outperform our guidance for operating income, net income and EPS during the second quarter of 2016. Our mobile internet revenue grew by 6.6% year over year, as our 4G subscriber base expanded to 5.7 million as of the end of June. Additionally, our competitive advantages in offering scalable, reliable, and comprehensive ICT solutions to enterprise customers, resulted in continued solid enterprise adoption of our ICT services during the quarter.”

Dr. Tsai continued, “Moving forward, we will continue to execute upon our expansion strategies surrounding our core growth areas including 4G adoption, ICT expansion, and enterprise cloud growth in Taiwan. In addition to the introduction of the Big 4G plans in April, we are focusing more on channel marketing to retain customers and increase their contribution. Lastly, we are extremely proud to have begun operation at our CHT Taipei IDC, one of the four highest-rated data centers in the world. This cutting-edge IDC will significantly strengthen CHT’s cloud-based business capabilities by connecting Asia Pacific companies looking for high-speed, reliable data access connections to the rest of the world. We are confident that these new initiatives will continue to strengthen our leadership position and further boost our growth momentum going forward.”

Revenue

Chunghwa Telecom’s total revenues for the second quarter of 2016 decreased by 1.3% to NT$56.20 billion, which was comprised of 47.1% mobile, 12.1% internet, 32.8% domestic fixed, 6.3% international fixed, and 1.7% from other businesses.

Mobile communications revenue for the second quarter 2016 decreased by 7.1% to NT$26.48 billion. This was mainly due to the continual decrease of smart device sales and mobile voice revenues because of VoIP substitution and market competition, which was partially offset by the increase in mobile VAS revenue.

Internet business revenue for the second quarter of 2016 increased by 5.5% year-over-year to NT$6.83 billion. The increase was primarily attributable to higher data communications revenue and application VAS revenue.

Domestic fixed revenue for the second quarter of 2016 increased by 3.7% year-over-year to NT$18.41 billion, mainly due to the growth of ICT project revenue. Broadband access revenue decreased by 1.8% to NT$4.70 billion. Local and DLD service revenue decreased by 5.7% and 7.8% to NT$8.01 billion and NT$0.73 billion, respectively, mainly due to increased mobile and VoIP substitution. International fixed revenue increased by 0.9% to NT$3.55 billion.

Operating Costs and Expenses

Total operating costs and expenses for the second quarter of 2016 decreased by 0.9% to NT$43.31 billion. The decrease was primarily due to the lower costs of goods sold and depreciation expenses, which offset the increase of ICT project expenses.

Operating Income and Net Income

Income from operations for the second quarter of 2016 decreased by 2.4% to NT$12.88 billion. The operating margin was 22.9%, compared to 23.1% in the same period of 2015. Net income attributable to stockholders of the parent decreased by 0.7% to NT$11.06 billion and basic earnings per share was NT$1.43.

Cash Flow and EBITDA

Cash inflow from operating activities for the second quarter of 2016 decreased by 26.0% to NT$13.41 billion. Cash and cash equivalents as of June 30^th , 2016 increased by 30.2% year-over-year to NT$44.64 billion.

EBITDA for the second quarter of 2016 decreased by 2.8% to NT$20.99 billion. EBITDA margin decreased to 37.4% compared from 37.9% in the same period of 2015.

Capital Expenditure (“Capex”)

Total Capex for the second quarter of 2016 decreased by 28.3% to NT$3.43 billion, and was comprised of 44.5% domestic fixed communications, 40.0% mobile communications, 9.0% Internet, 2.7% international fixed communications, and 3.8% from others.

Business and Operational Highlights

Broadband/HiNet

The Company continued to execute its strategy of encouraging FTTx migration. As of June 30^th , 2016, the number of FTTx subscribers reached 3.44 million, accounting for 76.6% of the Company’s total broadband users. Moreover, the number of subscribers signing up for speeds of 100Mbps or higher increased by 13.8%, reaching 1.12 million. HiNet broadband subscribers totaled 3.76 million as of June 30^th , 2016.

Mobile

As of June 30^th , 2016, Chunghwa had 10.87 million mobile subscribers, representing a 2.5% year-over-year decrease. The Company also had 6.43 million mobile Internet subscribers, representing a 16.1% year-over-year increase. As of June 30^th , 2016, the company accumulated 5.70 million 4G subscribers.

Fixed-line

As of June 30^th , 2016, the Company maintained its leading position in the fixed-line market, with a total of 11.06 million subscribers.

Financial Statements

Financial statements and additional operational data can be found on the Company’s website at http://www.cht.com.tw/en/ir/stockit-earningsit.html.