Galaxy Entertainment Group Limited — M&A Activity 2000

Jan 31, 2000

Listed Company Information

NEW WORLD DEV<0017> - Announcement 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. New World Development Company Limited (Incorporated in Hong Kong with limited liability) ANNOUNCEMENT The board of directors of the Company has noted the recent increase in the price of the shares of the Company and wishes to state that the Company has entered into an exclusivity agreement with Davnet Limited, a company listed on the Australian Stock Exchange and an independent third party on 27th January 2000. New World Development Company Limited (the "Company") has noted the recent increase in the price of the shares of the Company and wishes to state that the Company is not aware of any reasons for such increase. The directors of the Company wish to state that the Company has entered into an exclusivity agreement (the "Agreement") on 27th January 2000 to give Davnet Limited, a company listed on the Australian Stock Exchange and an independent third party a period of 45 days from 27th January 2000 to negotiate exclusively with the Company for the proposed acquisition (the "Proposed Acquisition") of an estimate 74% interest in New World Telephone Limited, an 88% indirectly owned subsidiary of the Company, which is carrying on the business of fixed telecommunication network services and international direct dial telecommunication services. The Proposed Acquisition, which may or may not materialise, does not constitute a notifiable transaction under Chapter 14 of the Rules Governing the Listing of the Securities on The Stock Exchange of Hong Kong Limited. Further announcement will be made if the Proposed Acquisition is materialized. The Company also confirms that apart from the Agreement, there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature. Made by the order of the Board, the directors of which individually and jointly accept responsibility for the accuracy of this statement. Shareholders of the Company and potential investors are advised to exercise caution in dealing in the shares of the Company. By Order of the Board New World Development Company Limited Leung Chi-Kin Stewart Company Secretary Hong Kong, 28th January 2000