IRC Limited — Capital/Financing Update 2002

Dec 18, 2002

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.

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ANNOUNCEMENT

MEETING OF EXCHANGEABLE BONDHOLDERS AND MEETING OF CONVERTIBLE BONDHOLDERS

On 17th December, 2002, the meeting of Exchangeable Bondholders and the meeting of Convertible Bondholders were held in Hong Kong at which all the resolutions proposed at the two meetings were duly passed.

Reference is made to the announcement of LSD dated 3rd December, 2002 in relation to, among other things, the convening of the meetings of the Exchangeable Bondholders and the Convertible Bondholders. Words and expressions used in that announcement shall have the same meanings when used herein, unless the context otherwise requires.

Reference is also made to the LSD’s announcement dated 12th November, 2002 in relation to the ATV Transaction. As explained in that announcement, completion of the ATV Transaction is conditional on, among other things, the consent or approval of the Exchangeable Bondholders and the Convertible Bondholders.

The directors of LSD are pleased to announce that on 17th December, 2002, the meetings of the Exchangeable Bondholders and the Convertible Bondholders were held in Hong Kong at which, among other things, the resolutions to approve the ATV Transaction and the deferral of LSD’s repayment obligations under the Exchangeable Bonds and the Convertible Bonds to 31st March, 2003 were duly passed.

During the period to 31st March, 2003, LSD will continue to work with the Bondholders and its other creditors to finalise and effect a full restructuring of the Bonds and other debt obligations.

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The ATV Transaction remains conditional on, among other things, the approval of LSD shareholders at the extraordinary general meeting of LSD to be held on 20th December, 2002 and the approval of the Broadcasting Authority. Subject to fulfilment of the conditions, completion of the ATV Transaction is expected to take place on or before 30th April, 2003 (with the purchaser, DGI, having the option to extend the period for completion until 15th May, 2003). In the meantime, shareholders and other investors are advised to exercise caution when dealing in LSD’s shares.

By Order of the Board Lai Sun Development Company Limited Yeung Kam Hoi Company Secretary

Hong Kong, 17th December, 2002

Please also refer to the published version of this announcement in the (The Standard)

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