CSC Holdings Limited — M&A Activity 2000

Aug 23, 2000

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(incorporated in the Cayman Islands with limited liability)

CLARIFICATION ANNOUNCEMENT

The Board of Directors (the "Board") of CCT Telecom Holdings Limited (the "Company") wishes to clarify some reports in the press on 22 August 2000.

This announcement is made at the request of The Stock Exchange of Hong Kong Limited.

The Board has noted the increase in the trading volume of the shares of the Company today. The Board wishes to clarify that NTT Communications Corporation ("NTT Communications") has made a proposal to the Company to acquire a portion of the Company's existing 51% shareholding in HKNet Company Limited ("HKNet") with the aim of increasing NTT Communications's existing 49% shareholding in HKNet to approximately 70% to 75% (the "Proposal"). However, as the Proposal is still in the preliminary stages of discussion and the specific terms and conditions of the Proposal have yet to be agreed between NTT Communications and the Company, the Board is unable to provide any further information on the details of the Proposal until discussions between both parties have reached a more advance and definitive stage.

The Proposal may or may not proceed. Shareholders, warrantholders and investors are advised to exercise caution in dealing in the securities of the Company. Further announcements relating to the Proposal will be made if and when necessary.

By Order of the Board

Mak Shiu Tong

Chairman

Hong Kong, 22 August 2000

Please also refer to the published version of this announcement in the Hong Kong iMail.