09:37     CSPCCWL@XC0503A<09175> - Announcement (1)                           

    This announcement appears for information purposes only and does not      
    constitute an invitation or offer to acquire, purchase or subscribe       
    for the Warrants described below.                                         
                                                                              
    The Stock Exchange of Hong Kong Limited (the `Stock Exchange') 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.                                                        
                                                                              
    Further Issue                                                             
    of                                                                        
    700,000,000 European Style (Cash Settled) Locked-In Return* Call          
    Warrants 2005                                                             
    relating to the existing issued ordinary shares of HK$0.25 each of        
    PCCW Limited                                                              
                                                                              
    issued by                                                                 
    CREDIT SUISSE FIRST BOSTON                                                
    (incorporated under the laws of Switzerland)                              
                                                                              
    Sponsor/Manager                                                           
    CREDIT SUISSE FIRST BOSTON (HONG KONG) LIMITED                            
                                                                              
    Credit Suisse First Boston (the `Issuer') announces its intention to      
    further issue the series of Warrants detailed below (the `New             
    Warrants'). The New Warrants will, from their date of issue, be           
    consolidated and form a single series with an existing issue of           
    120,000,000 European Style (Cash Settled) Locked-In Return* Call          
    Warrants 2005 (Stock Code: 9175) relating to the existing issued          
    ordinary shares of HK$0.25 each of PCCW Limited (the `Original            
    Warrants', together with the New Warrants, the `Warrants'). The           
    closing price of the Original Warrants on December 31, 2004 was           
    HK$0.015.                                                                 
                                                                              
    The terms and conditions of the New Warrants are identical in all         
    material respects to the terms and conditions of the Original             
    Warrants. Each Warrant relates to the ordinary shares of the par          
    value specified below (the `Shares') of the company specified below       
    (the `Company').                                                          
                                                                              
    Company   Share     Issue     Periodic  Expiry    Board     Exercise      
                        Price     Fixing    Date      Lots      Price         
                                  Dates                                       
                                                                              
    PCCW      HK$0.25   HK$0.015  December  March     1,000     HK$6.28       
    Limited                       10, 2003  10, 2005                          
                                  May 10,                                     
                                  2004                                        
                                  October                                     
                                  11, 2004                                    
                                  March                                       
                                  10, 2005                                    
                                                                              
    The Warrants are European style and may only be exercised on the          
    Expiry Date. The Warrants are in registered form and exercisable only     
    in the board lots specified above. Each Warrant entitles the holder       
    on exercise thereof to receive from the Issuer a payment of an amount     
    in Hong Kong dollars calculated by the Issuer (the `Cash Settlement       
    Amount') equal to (1) the sum of the Periodic Cash Settlement Amounts     
    (as defined below) divided by the relevant number of Periodic Fixing      
    Dates (provided that if any such Periodic Fixing Date is not a            
    Business Day, it shall be the immediately preceding Business Day)         
    less (2) the Exercise Expenses (as defined in the terms and               
    conditions of the Warrants).                                              
                                                                              
    `Periodic Cash Settlement Amount' means, in respect of every              
    Exercise Amount (as defined in the terms and conditions of the            
    Warrants) and in respect of each Periodic Fixing Date, an amount in       
    Hong Kong dollars calculated by the Issuer as equal to the greater of     
    zero and (1) the arithmetic mean of the closing price of one Share        
    (as derived from the Daily Quotation Sheet of the Stock Exchange,         
    subject to any adjustments) for each Valuation Date (being each of        
    the five Business Days (as defined in the terms and conditions of the     
    Warrants) immediately preceding such Periodic Fixing Date) less (2)       
    the Exercise Price.                                                       
                                                                              
    For the avoidance of doubt, if the Cash Settlement Amount is a            
    negative figure, it shall be deemed to be zero. The Cumulative            
    Periodic Cash Settlement Amount as at October 11, 2004 was zero.          
                                                                              
    If, on the Expiry Date, the Cash Settlement Amount is more than           
    zero, the Warrants will be automatically exercised (without any           
    notice being given to the holders of the Warrants) and the Issuer         
    will pay to the holders the Cash Settlement Amount calculated as          
    described above.                                                          
                                                                              
    The implied volatility, gearing, effective gearing and premium of         
    the Warrants are detailed below. These values may not be comparable       
    to similar information provided by other issuers of derivative            
    warrants as each issuer may use different pricing models.