10:29     MELCO INT'L DEV<00200> - Announcement (1)                           

    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. This announcement is for                            
    information only and does not constitute an invitation                    
    or offer to acquire, purchase or subscribe for the                        
    securities of the Company.                                                
                                                                              
    Melco International Development Limited                                   
    (Incorporated in Hong Kong with limited liability)                        
    (Stock Code : 200)                                                        
                                                                              
    MAJOR TRANSACTION                                                         
    ESTABLISHMENT OF A JOINT VENTURE GROUP FOR                                
    PURSUANCE OF GAMING AND HOSPITALITY BUSINESSES                            
                                                                              
    MAJOR AND CONNECTED TRANSACTION                                           
    FURTHER ACQUISITION OF INTEREST IN THE LAND                               
                                                                              
    REFRESHMENT OF GENERAL MANDATE                                            
    TO ALLOT AND ISSUE SHARES                                                 
                                                                              
    Clarification of certain information as contained in                      
    the Circular                                                              
                                                                              
    SUMMARY                                                                   
    The circular of the Company containing, amongst others                    
    (i) further information of the Definitive Agreements                      
    in respect of the proposed establishment of the JV                        
    Group; (ii) the principal terms of the Second                             
    Agreement; (iii) the principal terms of the Second                        
    Convertible Bond; (iv) details of the Refreshment of                      
    General Mandate; (v) the recommendation from the                          
    Independent Board Committee in respect of the                             
    Connected Transaction and the Refreshment of General                      
    Mandate; (vi) a letter of advice from the Independent                     
    Financial Adviser to the Independent Board Committee                      
    and (vii) the notice convening the EGM regarding the                      
    Definitive Agreements, the Connected Transaction and                      
    the Refreshment of General Mandate, has been                              
    dispatched on 5 January 2005.                                             
                                                                              
    Due to a clerical oversight, the Company wishes to                        
    correct an inadvertent mistake made in the paragraph                      
    headed "Principal terms of the Second Convertible                         
    Bond" in the letter from the Board as contained in the                    
    Circular in that the initial conversion price of the                      
    Second Convertible Bond of HK$8.20 should represent                       
    a discount of approximately 19.37% to (rather than a                      
    premium of approximately 19.37% over) the average                         
    closing price of the Shares on the Stock Exchange for                     
    the five trading days immediately before the release                      
    of the announcement of the Company dated 23 November                      
    2004 regarding, inter alia, the Heads of Agreement and                    
    the Connected Transaction.                                                
                                                                              
    Due to an inadvertent mistake made in the calculation                     
    of the premium/(discount) of the conversion price of                      
    the Second Convertible Bond over/(to) the average                         
    closing price of the Shares on the Stock Exchange for                     
    the five trading days immediately before the release                      
    of the announcement of the Company dated 23 November                      
    2004, Dao Heng Securities Limited, the Independent                        
    Financial Adviser to the Independent Board Committee                      
    also noticed that there are certain incorrect                             
    statements in its letter of advice to the Independent                     
    Board Committee contained in the Circular.                                
                                                                              
    The Independent Financial Adviser to the Independent                      
    Board Committee, confirmed that despite the                               
    amendments need to be made, 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.