Galaxy Entertainment Group Limited — M&A Activity 2000

Jun 1, 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 arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability)

ANNOUNCEMENT

Pursuant to the Announcement, the Board wishes to state that on 30th May 2000 the Company and Davnet Limited have agreed to end the discussion in respect of the Proposed Acquisition on the basis that terms acceptable to both parties could not be agreed.

The board of directors (the "Board") of New World Development Company Limited (the "Company") refers to the announcement of the Company dated 6th April 2000 (the "Announcement").

The Board wishes to state that although the Company and Davnet Limited continued their discussion on the proposed acquisition (the "Proposed Acquisition") of an estimate 74% interest in New World Telephone Limited, 88% indirectly owned subsidiary of the Company, after the expiry of the 45 days exclusivity period granted to Davnet Limited under the exclusivity agreement (the "Agreement") dated 27th January 2000, the Company and Davnet Limited are unable to agree on terms acceptable to both parties. Accordingly, on 30th May 2000, the Company and Davnet Limited have agreed to end the discussion of the Proposed Acquisition.

Made by the order of the Board, the Directors of which individually and jointly accept responsibility for the accuracy of this statement.

By Order of the Board

New World Development Company Limited

Leung Chi-Kin Stewart

Company Secretary

Hong Kong, 31st May 2000