Hang Lung Group Limited — M&A Activity 2004

Aug 23, 2004

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.

PCCW Limited

(Incorporated in Hong Kong with limited liability)

(Stock code: 0008)

Announcement

PCCW Limited (the “Company”) notes certain articles which appeared in today’s newspapers about the proposed acquisition of interest in the Company’s wholly-owned subsidiary PCCW-HKT Telephone Limited by China Network Communications Group Corporation (“China Netcom”). The Company wishes to confirm that the discussions with China Netcom are at an advanced stage but no definitive agreement or letter of intent has yet been signed by the parties and there can be no assurance that any such agreement or letter of intent will be signed.

The Company notes certain articles which appeared in today’s newspapers which reported that China Netcom is planning to acquire a 50% interest in the Company’s wholly-owned subsidiary PCCW-HKT Telephone Limited for a cash consideration of approximately HK$30 billion. Such articles further allege that the proposed transaction is expected to be formally announced by the end of September 2004.

Further to the Company’s announcements dated May 18, 2004, June 10, 2004 and July 12, 2004, the Company wishes to confirm that the discussions with China Netcom are at an advanced stage but no definitive agreement or letter of intent has yet been signed by the parties and there can be no assurance that any such agreement or letter of intent will be signed. The Company is not aware of the source of such press articles. Further announcement(s) with regard to these discussions will be made as and when appropriate.

The Company also confirms that, save as referred to above, there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under Rule 13.23 of the Listing Rules. Also, neither the Company nor the Board is aware of any other matter discloseable under the general obligation imposed by Rule 13.09 of the Listing Rules, which is or may be of a price-sensitive nature.

By Order of the Board
Hubert Chak
Company Secretary

Hong Kong, August 23, 2004

The directors of the Company as at the date of this announcement are as follows:

Executive Directors:

Li Tzar Kai, Richard (Chairman); So Chak Kwong, Jack (Deputy Chairman and Group Managing Director);

Yuen Tin Fan, Francis (Deputy Chairman); Peter Anthony Allen; Alexander Anthony Arena; Michael John Butcher; Chung Cho Yee, Mico;
Lee Chi Hong, Robert

Non-Executive Directors:

Sir David Ford, KBE, LVO; The Hon Raymond George Hardenbergh Seitz

Independent Non-Executive Directors:

Prof Chang Hsin-kang; Dr Fung Kwok King, Victor; Dr The Hon Li Kwok Po, David, GBS, JP;

Sir Roger Lobo, CBE, JP; Aman Mehta

Please also refer to the published version of this announcement in South China Morning Post.