10:29     MELCO INT'L DEV<00200> - Announcement (3)                           

    In the first paragraph on p.47 of the Circular, it                        
    should be read as "The table above shows that the                         
    conversion price represents substantial premiums                          
    ranging from approximately 59.5% (instead of "19.4%")                     
    to 178.9% over the average Share closing price of (i)                     
    the three months up to 11 November 2004; (ii) the six                     
    months up to 11 November 2004; and (iii) the One-year                     
    Period, while it represents discounts of                                  
    approximately 6.4%, 19.4% and 16.8% to (i) the Share                      
    closing price on 11 November 2004; (ii) the five days                     
    up to 11 November 2004; and (iii) average Share closing                   
    price for the one month ended 11 November 2004".                          
                                                                              
    In table 2 headed "Summary of the Comparable Issues"                      
    on p.48 of the Circular, the Conversion Price should                      
    represent a discount (instead of "premium") of 19.4%                      
    to the average closing price per Share in the last five                   
    trading days prior to the related announcement.                           
                                                                              
    Starting from the fifth line of the first paragraph                       
    on p.50 of the Circular, it should be read as "The                        
    conversion price of the Second Convertible Bond                           
    represents a discount (instead of "premium") of                           
    approximately 19.4% to (instead of "over") the average                    
    closing price of the Shares in the last five trading                      
    days prior to the date of the Second Agreement, which                     
    lies within (instead of "in the high end of") the range                   
    of that of the ten Comparable Issues. Given that (i)                      
    the Conversion Price is higher than the Share price                       
    most of the time in the One-year Period; (ii) the                         
    Conversion Price is significantly higher than the NTA                     
    per Share based on the financial statements of the                        
    Group as at 30 June 2004; and (iii) the Conversion Price                  
    represents a discount (instead of "premium") of                           
    approximately 19.4% to (instead of "over") the average                    
    closing price of the Shares in the last five trading                      
    days prior to the date of the Second Agreement, which                     
    lies within (instead of "in the high end of") the range                   
    of the Comparable Issues from a discount of                               
    approximately 91.3% to a premium of approximately                         
    24.2%, we consider that the conversion price as                           
    stipulated under the Second Convertible Bond is                           
    acceptable".                                                              
                                                                              
    As to item (iii) on p.55 of the Circular, it should                       
    be read as "that the Conversion Price of the Second                       
    Convertible Bond represents a substantial premium                         
    over the unaudited net tangible asset value of the                        
    Company as at 30 June 2004 and significant premium over                   
    the closing price during most of the time in the                          
    One-year Period and the discount to (instead of                           
    "premium over") the average closing price of Shares                       
    in the last five trading days prior to the suspension                     
    pending the publish of the announcement relating to                       
    the Second Agreement is within the range of those of                      
    the Comparable Issues;".                                                  
                                                                              
    The Independent Financial Adviser to the Independent                      
    Board Committee confirmed that it is not aware of any                     
    other discrepancy or mistake in its letter of advice                      
    and, despite the above changes and due to the fact that                   
    the Conversion Price represents a discount of                             
    approximately 19.4% to the average closing price of                       
    the Shares in the last five trading days up to and                        
    including the date of the Second Agreement, which lies                    
    within the range of the Comparable Issues from a                          
    discount of approximately 91.3% to a premium of                           
    approximately 24.2%, its recommendation with regard                       
    to the Second Agreement and the Refreshment of General                    
    Mandate and the reasoning thereof as stated in its                        
    letter of advice contained in the Circular remain                         
    unchanged.                                                                
                                                                              
    The Independent Board Committee, having reviewed the                      
    revised analysis and opinion of the Independent                           
    Financial Adviser, maintained its opinion that the                        
    Connected Transaction is fair and reasonable so far                       
    as the Independent Shareholders are concerned and is                      
    in the interest of the Company and the Independent                        
    Shareholders as a whole. Accordingly, the Independent                     
    Board Committee recommends the Independent                                
    Shareholders to vote in favour of the relevant                            
    resolution(s) to be proposed at the EGM to approve the                    
    Connected Transaction.