10:05 PAC CENT CYBER<1186> - Announcement & Resumption (10) infrastructure and unique customer base. These services will offer consumers and enterprises broadband Internet connectivity, specific broadband content and service offerings in a number of languages combined with a supporting infrastructure which enables electronic transactions and commerce. PCCW's services will be accessible through any type of Internet access device, including personal computers, digital Internet access devices that display on TVs, and wireless devices. PCCW's own Internet service offer its customers a comprehensive range of content, entertainment, and consumer and business applications. PCCW's investment division, CyberWorks Ventures, has made a number of investments in young companies that can benefit from co-operation with PCCW. Many are engaged in `e-infrastructure' businesses that consist of services or technologies that enable value-added services to be delivered over the Internet. These are a source of content, software, hardware, and service solutions to PCCW and are often positioned to take advantage of its planned broadband platform and large potential captive customer base. The Cyber-Port, a project being undertaken in conjunction with the Hong Kong Government, is an IT-centric development project for leading information technology and service companies, which will be PCCW's base in Hong Kong. This confluence of technology companies will provide a `critical mass' and fertile environment for the generation for new ideas, innovations and businesses. Pacific Convergence PCCW believes that interactive broadband access through the existing cable TV infrastructure will enable it to provide consumers with high-quality access, even in locations where traditional dial-up connectivity is unavailable due to the limited amount or even total absence of wireline infrastructure, and a highly competitive service offering in regions where connectivity is better developed. PCCW is engaged in this business segment with its strategic partners which include Intel Corporation, SoftNet Systems, CMGI and IMG/TWI. By deploying a satellite to cable head-end or telecoms earth station infrastructure, PCCW will be able to rapidly establish contact and connectivity with local access operators across the AsiaSat III footprint. PCCW will enable operators who adopt PCCW's system to provide full broadband Internet access to their consumer and enterprise customers. Once the access network operator is connected, consumers and businesses will be able to access PCCW's interactive service offering through the use of Internet access devices such as set-top boxes or personal computers. PCCW and the network operator would share in the subscription fee collected from the subscriber. PCCW's network delivery architecture comprises open standard Internet protocols and ubiquitous PC, TV and audio components. It is PCCW's intention to provide its services through any type of broadband network (including telecoms plant upgraded with DSL technology), digital interface or Internet access device that may be available or emerge in the future. PCCW is developing a global brand for its services. This brand, NOW (Network of the World), is expected to become a powerhouse of the Internet. The NOW offering will be a truly converged digital media network, delivering a compelling customer experience that PCCW expects to drive adoption and usage. The NOW service will also be available through the Internet to users outside the PCCW ISP footprint and on a variety of access platforms (e.g., wireless), allowing PCCW to maintain constant contact with the customer and leverage the proprietary services it develops over the maximum number of users. The initial rollout of this service will be in English and content production facilities are being developed in London in partnership with the IMG/TWI Group. Over 200 professionals in London and Asia are at work developing PCCW content. Both the branded portal and its associated vertical applications/content areas (`vortals') will over time be produced in a number of appropriate local languages, including Chinese and Japanese. The sequence and timing of local language services rollout will be dictated by advertiser and customer demand. The content within each vortal will provide a basis for PCCW's television services as described below. NOW TV will integrate television programming with simultaneous multimedia content available on the Internet. The level of tight integration is unique to PCCW. The simultaneous transmission of TV and web portal content will allow advertisers to create fully integrated campaigns across both media with messages that reinforce